Early years funding updates

To try and co-ordinate important messages we are including funding updates on this webpage. This will include everything that is current. We recommend that you ‘bookmark’ or save this webpage as a ‘favourite’ so you can easily refer to it.

• 2 Year Old Funding

  We have received a number of enquiries from parents that have been turned away from a setting as they haven’t provided an 11-digit code for the two-year-old funding. Children can be awarded two-year-old funding as ‘targeted’ or ‘working entitlement.’

  If they are ‘targeted’ they will have a TYF878 number. You will need to see confirmation from the parent that they are entitled to this funding. This could be an email or portal message. The evidence will also show the earliest date that they can take up the funded place. You cannot run a check on a TYF878 code or enter it on to a task.

  If they are ‘working entitlement’ they will have an 11-digit code that start ‘50’, ‘11’ or in some cases ‘40’. You should run a check on the code through the provider portal in the usual way to confirm eligibility.

  If two-year-old funding has been awarded by another Local Authority, please direct the parent to the Citizen’s Portal (devon.cc/tyf) to make an application so they can get their TYF878 reference.

  We recommend that if a child joins you without the relevant eligibility/evidence that their contracts are issued as if they are a fee-paying child.

• Early Years Expansion Grant (EYEG)

  For 2025/26 we have received a grant of £966,227 from the Department for Education (DfE) for the final phase of the roll-out of the working entitlements.  From September 2025, the working entitlements for eligible 2-year-olds and under will increase to up to 30 hours per week.

  Local authorities must distribute the funding in a clear and transparent manner and consider specific growth needs in their area to meet their sufficiency duty.

  Whilst the funding is calculated on uplifting the 2-year-old and under 2’s funding rate, due to provider feedback, we have decided to distribute an increase across all ages (£778K) and retain some funding (£188K) for revenue grants in areas where we know new development will be required in 2025.  Due to more 3- & 4-year-olds accessing a higher number of funded hours, it does reduce the amount of increase we can allow on each of the funding rates.

  The increases in hourly rates from 1^st April 2025 (summer funding period) is as follows:

  3- & 4-year-olds = 6p per hour

  2-year-olds = 4p per hour

  Under 2’s  = 4p per hour

  Therefore, the new hourly rates from 1^st April 2025 will be:

  3- & 4-year-olds = £5.56

  2-year-olds = £7.46

  Under 2’s = £9.96

  All hourly rates above include 10p for universal SEND and 4p for universal Deprivation.

  The increased hourly rates will be used to calculate the funding due for summer once the summer headcount tasks have been submitted. This will be shown on the financial breakdown report that will be issued via the provider portal once the balancing headcount payment is made at the end of June.  Please note that we will not be amending monthly forecast payments.

  This is a one-year grant so these increases will be removed from the funding rates from April 2026 and the normal DfE increases will be allocated once known.

  If you are looking at a further development for 2-year-olds or under in an area of need, please speak with your EYCA so we can advise on the grant availability.

  Please ensure this communication is shared with the business owners, directors, finance colleagues and anyone else who needs to be aware.

• Summer Headcount Task Guidance

  The summer headcount tasks are now available with a deadline of 23.59 on Sunday 18^th May 2025. The Summer funding period is from 1^st April 2025 to 31^st August 2025 and Headcount week is 4^th May to 10^th May 2025.

  If you claimed hours for Monday 31^st March in the Spring funding period, these hours will have to be deducted from the 15/30 hours available for the first week of the summer funding period (1^st – 4^th April).

  There are several bank holidays within the summer funding period. As per our provider agreement, you are able to claim funding for bank holidays if you are open and providing childcare. If you are not open, you should reduce your claim for children that would usually attend, unless you are able to offer the hours elsewhere during that week, and reduce parent fees, or offer them within the summer funding period (up to a maximum of 15/30 hours per week).

  The 570 hours remaining report will be issued via the provider portal shortly. If a child has hours remaining, they can use these in the summer funding period as long as they do not exceed 15/30 hours (as applicable) in any week or more than 10 hours per day (as per the DfE framework). Providers have the flexibility to offer and maximise the funding for parents if they have empty spaces and can offer additional hours/days.

  If a child is sharing funding with another provider, you must discuss your funding claims and ensure they do not exceed the hours remaining. Any claims that exceed the hours remaining on the 570 report will be reduced and there will be an administration charge. Please ensure that you check your total termly claims before submitting.

  Please note that you must submit all your headcount tasks, even if you do not have any funded children in a particular age group. This is a condition of funding as per our provider agreement.

  Completing the headcount tasks

  • Please ensure the correct start date is recorded for any new children as it will automatically default to 1st April 2025.
  • For under 2s, and 2-year-old funded children that are entitled to the working entitlement funding you will need to enter your weekly hours/hours claimed for the funding period in the ‘working entitlement’ columns.
  • For 2-year-olds that are entitled to the ‘targeted’ 2-year-old funding
  • you will need to enter your weekly hours/hours claimed for the funding period in the ‘targeted/universal’ columns.
  • Please note that if the child is eligible for both the working entitlement and targeted funding, hours should be recorded in the targeted columns only.
  • You must see evidence of eligibility for ‘targeted’ 2-year-old funding to be able to claim funding. The evidence will contain a ‘TYF878’ reference and the ‘earliest date to take up the funded place’. We recommend that you keep a copy on file in case of any query.
  • For 3- & 4-year-olds that are eligible for the ‘universal funding’ only, not the working entitlement (extended hours), please record the hours in the universal columns.
  • For 3- & 4-year-olds, who are eligible for the ‘working entitlement’ please record hours in all 4 columns.
  • Weekly and termly hours should be split 50/50 and half recorded in the ‘universal’ column and the other half in the ‘working entitlement’ column.
  • For example, a child claiming 30 hours per week & 400 hours for the funding period, would be recorded as 15 hours in both weekly ‘universal’ and ‘working entitlement’ columns and 200 hours in both ‘universal’ and ‘working entitlement’ hours for the funding period columns.
  • Weekly hours can be claimed in multiples of 0.25 but this cannot be split across the weekly columns, for example, a child claiming 14.25 hours per week would be recorded as 7.25 hours in ‘universal’ and 7 hours in ‘working entitlement’.
  • Your total hours for the funding period must be in multiples of 0.5 hours. If the child has a total of 242.5 hours for the funding period, you cannot record 121.25 in each column. Please record 121.5 in the universal column and 121 in the working entitlement column.

  Please remember

  • There must be a ‘WE’ icon in the funding column to allow hours to be entered into the working entitlement fields.
  • If there is no ‘WE’ icon, please ensure that you have run a check on the code, that the child is entitled to the funding for spring as per their eligibility dates and the details i.e. name/date of birth used to run the code check match the task. You may need to add the working entitlement code to the child’s record on the task by clicking on the ‘edit child details’ button to the left of their name.
  • If the child has moved from, or sharing hours with another setting, please contact the other provider and confirm their pattern of attendance, total hours claimed for spring and leaving date if appropriate including notice period (up to 4 weeks allowed for funding).
  • Please follow our Provider process for children sharing early years funding (headcount)
  • Please only collect and add parent/carer data for any children that you believe may be eligible for EYPP and who are not listed on a previous EYPP report and who do not have a ‘P’ in the funding column on the task.

  The deadline for submissions is 23.59 on Sunday 18^th May 2025.

  Please note that our Early Years Funding Helpdesk is open from 9.00am until 4.00pm Monday to Friday and we are only able to provide support during these times.

  Frequently asked questions:

  Why are the 4 boxes not available on my 2-year-old task so I can split the hours?

  Most children will be eligible for either targeted or working entitlements. You do not split the funded hours for 2-year-olds across the 4 boxes. You simply record all weekly and total hours for the funding period in either ‘targeted’ or ‘working entitlements’ (as applicable).

  Can we claim 30 hours if a 2-year-old funded child is entitled to targeted and working entitlements?

  No, a 2-year-old funded child can only claim up to a maximum of 15 hours per week.

  How do I record the funding if a 2-year-old child is entitled to the targeted and working entitlements?

  Please record the funding in the targeted columns but continue to ask those parents to reconfirm their working entitlement eligibility to ensure they have a valid code when the child becomes eligible for up to 30 hours.

  Why are the working entitlement boxes not available for my 2-year-old claim?

  The working entitlement boxes will not appear if there isn’t an ’WE’ icon in the funding column on the task. Please ensure that you have run a check on the working entitlement code and that it is eligible for the summer funding period by looking at the eligibility dates or the ‘earliest start date for working entitlement funding’ in review previous checks.

  If you have run a check, and the child is eligible, please click on the ‘edit child details’ to the left of the child’s name on the task and enter the working entitlement code into the relevant field. Once you have saved the changes, the ‘WE’ icon should appear in the funding column and allow you to enter the hours on to the task.

  Please note that when you run a Working Entitlement code check and select ‘Check new child,’ the code will not automatically be added to child’s details on the headcount task.

  When I enter 20 hours on the 3- & 4-year-old task it’s inputting 15 hours in the Universal column and 5 hours in the Working Entitlements column, it’s not splitting it 50%?

  You will have to overtype the weekly hour fields and record 50% of the weekly hours in each column for universal and working entitlements.

  Provider Self Update (PSU):

  It’s time to review, check and update your Provider Self Update.

  Please check through all tabs and make sure all information is complete and up to date.

  • I need to update some details – If there are changes, please overwrite what is already there and click the submit button at the bottom of each tab you make a change on.
  • There are no changes – If you have checked all your information and are happy that it is correct and there no changes required, you can click the ‘No Changes Required’ button at the bottom of the Additional Information tab.

  If you have any queries or questions regards to PSU, please email childcareinformation-mailbox@devon.gov.uk Please do not contact the funding helpdesk as we are not able to assist.

• Updated Statutory Guidance re: Charges

  Further to our email sent on Friday 28^th March, we have made some amendments to our existing provider agreement with regards to charges and notice periods. The changes are as follows:

  Section 4: Charging parents – opening statement added

  Section 4: Charging parents – Notice periods 4.21 amended

  Section 4: Charging parents – Notice period original 4.21 now 4.22

  Section 10: Termination and withdrawal of funding – Ofsted/ISI outcomes 10.6 amended

   Any reference to consumables, service charges or additional charges are now referred to as ‘chargeable extras’.

  We will continue to make amendments/updates to the provider agreement as and when required.

  Following the release of the Statutory Guidance and our briefing sessions, we have some FAQ’s from both the DfE and from our Devon providers which we hope you will find useful.  We can’t cover every different scenario but hope it sets the options available to you if you are thinking about making changes to your model and/or your additional charges.

  DfE Charging – FAQs

  Provider FAQs for Chargeable Extras

  The DfE have advised that they will not be encouraging parents to opt-out of charges and we are not planning on publicising the changes to parents but you must continue to have options available.  Likewise, you do not need to highlight alternative options to parents and can simply say that you have reviewed your charging policies and have made changes to meet the Statutory Guidance requirements and if parents have any queries, to contact you to discuss.  The DFE are requesting that Chargeable Extra’s, are listed as hours, food, consumables and activities.  The DfE have a template that can be used to agree with parents the services they require and the charges.  To support providers we have drafted a template policy that can be used to set-out your offer along with other charges that may apply to funded or non-funded time.

  It is not a requirement that you use these templates but it is a requirement that all settings are open and transparent with your charges.  Your fees and charges should be published on your websites or social media pages.  We are looking at the Provider Self Update to see if the information can be held centrally and will update you further with our progress.

  Template – DfE Chargeable Extras

  Template – Devon Policy for Chargeable Extras

  Chargeable Extras and itemised invoicing need to be fully implemented by January 2026.  LA’s can exempt providers caring for 10 or fewer children but being transparent applies to all settings.  Pupil numbers fluctuate through the year, and we want to be consistent with all sectors. This is therefore a requirement of all funded providers in Devon.

  We know providers are being asked for detailed invoices for parents who are claiming childcare through their Universal Credit claims so if you have your own invoicing systems, you may want to make changes sooner.  If you are using software packages, it will take time for them to be updated.

  If you have an example of an invoice that has been queried by DWP for a Universal Credit claim and parents are happy for you to share their details, please email copy of invoice and any communications so that we can follow this up with our DWP contact.

  If you have any specific topics that you would like us to cover, please let us know and we will do our best to plan an appropriate session.

• Online support sessions and training videos

  These sessions are an opportunity for us to keep you updated with any system changes, DfE funding updates or any wider service priorities that create opportunities for our childcare providers in Devon.  However, we are more than happy to cover other topics but please let us know in advance so we can prepare and present something useful.

  Summer Headcount Task Training sessions:

  Friday 9th May 2025 from 11.00am to 12.00 noon

  Monday 12th May 2025 from 6.30pm to 7.30pm

  Sessions will be held via Microsoft teams. There is no requirement to book onto a session, please click on the relevant link below to join.

  Training videos

  We have also produced some training videos to help with the completion of tasks:

  • How to add a child to your Headcount Task – video guide
  • How to run a working entitlement eligibility code check – video guide
  • Two year old Headcount Task – video guide
  • How to edit your 3 & 4 year old Headcount Task – video guide
  • Working entitlement funding code – video guide

  More videos will be added as they become available.

  Presentations

  • Calculating funding claims for summer
• Review of impact for Individual Inclusion Funding

  To ensure Individual Inclusion Funding (IIF) is allocated and meeting the needs of children across Devon, we have changed the way we collect information about the progress and outcomes of children with SEND.

  Further to our previous correspondence, the termly Review of Impact (RoI) for children in receipt of IIF needs to be completed online on the link below:

  Individual Inclusion Funding Termly review of impact

  The deadline for completion is 28^th February 2025 for all children that have been allocated IIF from Autumn 2024 or before. This will ensure that we have funding available and allocated for the Summer 2025 term.

  As a new process, we would like the RoI to be completed, even if funding is not required in Summer so that we have a record of the child’s progress.

  For children who are newly funded in Spring with IIF your first RoI is due for completion by 31^st May 2025.

  The RoI will be monitored by our Early Years Consultant colleagues who may contact you if they have any queries.

• Registered email address for funding purposes

  If you change your email address, and this is also used for funding purposes i.e. provider portal, remittance etc. please email eyef@devon.gov.uk to advise and ask for this to be updated. If we have an incorrect email address you won’t receive conflict, audit emails, you may be missing out on important information regarding funding, and it will cause problems if you need to reset your provider portal password. 

  You may also need to register a new egress account for the new email in order to share sensitive and confidential information with us. Please visit Egress support for more information 

  Please could we also ask that funding information is shared with other staff/colleagues where relevant and appropriate.

• Polylino EAL Resources

  The Early Years and Childcare service has a number of licences available for Polylino resources. 

  Polylino is a multilingual digital picture book service for early years providers. It provides nursery practitioners and managers with a multilingual digital library aligned with the EYFS  curriculum which can be used to support language and literacy development in the nursery and at home.  

  More information is available on YouTube or by visiting the website.  

  If this is something that would support EAL children in your setting, please sign up for the free trial on the Polylino website and if you would like to apply for licences, please complete the Polylino EAL resources for early years children application form