How will the extended entitlement be funded?

In Autumn 2016 the Chancellor announced an additional investment of £300 million per year from 2017-18 for a significant uplift to the national average hourly rate. This investment is sufficient to increase the national average hourly rate for 3 and 4 year olds and locally this will see an uplift in the base rate for 3 and 4 years olds from £4 to £4.25 per hour from April 2017.

Funding position for Autumn 2017

Standard funding practice is for providers to receive 50% of the previous terms funding as their estimate payment.  However, for the Autumn 2017 term this will not factor in any 30 hour children for this estimate payment.  We have therefore offered providers the option of an additional payment to reflect 30 hours provision for the Autumn Term only.

Providers were given 2 options;

Option A

Providers that notified us by the June deadline that they wanted to receive an estimated 50% of their 30 hour funding in September and the 50% balance in December, will have received a pre-populated report for currently funded children from the Funding Team. This was to be completed and returned by 31st July 2017 to ensure that these providers received their normal estimate payment, plus a further 7.5 hours funding for existing children and 15 hours for all new 30 hour children.

In December these providers will receive their 50% balance payment for all 15 and 30 hour children. 


Option B

Providers that  didn’t contact the Funding Team by the June deadline  will receive their estimate payment as normal in September but no 30 hour funding.  In December the payment will be 50% of the settings 15 hour children and 100% of any 30 hour children.

Business will resume as normal for the Spring Term 2018 onwards!

The new Statutory Guidance states that LA’s should pay all providers monthly from September 2018 - we are consulting on this currently and an outcome will be communicated in Spring 2018.

For any finance related queries, please email