Provider Agreement

Section 1: Overview 

1.1 The Department for Education (DfE) requires Devon County Council (DCC) as the Local Authority to have a Provider Agreement.

For the purposes of this agreement, Devon County Council will be referred to as ‘we’ ‘us’ or ‘our.’

1.2 This agreement applies to the: 

• Working entitlements for parents of children from 9 months to 5 years
• 15-hour entitlement for the most disadvantaged two-year-old children
• 15-hour universal entitlement for all parents of three and four-year-old 
• children
• Early Years Pupil Premium (EYPP)
• Disability Access Funding (DAF)
• SEND Individual Inclusion Funding

An ‘eligible child,’ is a child who meets the description of a qualifying child as defined in section 1(2) of the Childcare Act 2016 and section 7 of the Childcare Act 2006. 

1.3 All Devon providers who want to be funded, must complete, and return the Provider Agreement form to signify that they agree to the requirements set out in this Provider Agreement.

1.4 A list of providers is held on the Capita One database. Information given by providers through the provider self-update is stored on this database and where consent has been given is published on ‘Find Childcare in Devon’ 

1.5 This document does not provide guidance on how providers operate their private business outside of the funded hours.

1.6 This agreement will be kept under review and updated as required. Providers will be notified of changes through the Provider Portal, Digest and Social Media platforms.

Who is this agreement for? 

1.7 This agreement is for:

• Early years groups and childminders registered on the Ofsted Early Years Register, including before and after school and holiday providers taking children under five years
• Childminders registered with a childminder agency that is registered with Ofsted
• Independent Schools, Free Schools and Academies taking children under five
• Maintained schools taking children under five

Supplementary Provisions 

1.8 We reserve the right to unilaterally vary this agreement to reflect changes in legislation and guidance from the Department for Education (DfE).

1.9 We have a legal duty under the Freedom of Information Act 2000 to be open and transparent about the information we hold. More information on this duty can be found on our website

Legal framework and statutory guidance 

1.10 References to legislation within this agreement will apply to the legislation as amended, without significant changes to the agreement.

1.11 The following frameworks and legislation underpin this agreement:

• Early education and childcare Statutory Guidance 
• Childcare Act 2006  
• Childcare Act 2016  
• Equality Act 2010  
• School admissions code 
• Early years foundation stage (EYFS) statutory framework 
• The Local Authority (Duty to Secure Early Years Provision Free of Charge) Regulations 2014 
• Data Protection Act 2018 
• SEND code of practice: 0-25 years 
• Operational Guidance 

Section 2: Provider agreement requirements

2.1 We are required to have due regard in the exercise of our duty under section 7 (1) of the Childcare Act 2006 and regulation 49 of the Childcare (Free of Charge for Working Parents) (England) Regulations 2022.

2.2 We have a duty to comply with the Data Protection Act 2018 with regards to the use of personal and sensitive data.

Key local authority responsibilities 

2.3 We must secure a funded entitlement place for eligible children in our local authority area, including those with Special Educational Needs & Disability (SEND) as far as is reasonably practicable.

2.4 We will work in partnership with providers to agree how to deliver funded entitlement places.

2.5 We must contribute to safeguarding and promote the welfare of children and young people in our area.

2.6 We must ensure that a child has a funded place no later than the start of the funding period following the child and/or parent meeting the eligibility criteria for the funded entitlements.

Key provider responsibilities 

2.7 The provider must comply with all relevant legislation and are obliged to take out and maintain adequate levels of insurance.

2.8 The provider should deliver the funded entitlements consistently to all parents, whether in receipt of 15 or 30 hours and regardless of whether they opt to pay for additional services or chargeable extras, or not. This means that the provider must be open and transparent about the days and times that they offer funded places, along with their fees for additional hours and services.

2.9 Those children accessing the funded entitlements must receive the same quality and access to provision as children attending for time that the parents have paid for. Providers must determine how they maintain the quality and access for children whose parents do not pay for time e.g., when a forest school or other activities are being offered.

2.10 Early years provision by a childminder (either independently registered with Ofsted or registered with a childminder agency) for a related child does not count as childcare in legal terms. This includes stepchildren, foster children, grandchildren, nephews, and nieces etc. Government funding cannot be claimed by, or spent on, childminders providing childcare for their own child or a related child, even if they are claiming for other children. For further information please refer to the statutory guidance

2.11 The provider must notify us of any changes to the details given on the Provider Agreement Form; these include names, addresses, email addresses, bank details, telephone numbers, changes of age range, change of management etc. You must also inform us in writing of any long term or permanent closure or if you purchase or sell your business within a funding period. Please contact the helpdesk or email any details to eyef@devon.gov.uk

2.12 Every effort is made to keep providers well informed. We expect providers to regularly check for messages through the Provider Portal, by subscribing to the Friday Digest and to follow our service on social media if they wish.

2.13 Providers must register for a free Egress Switch Account. This will ensure that all email communication relating to funding and confidential information is sent and received securely. You must log in to egress to send any personal information by email to us. You will be asked to sign into egress when we send you a secure email. Please see Frequently Asked Questions for more information.

2.14 The provider must work with us and share information about the times and periods in which they are able to offer funded entitlements to support us to secure enough stretched and flexible places to meet parental demand in Devon.

2.15 The provider must publish their admissions criteria and any fees for chargeable extras, additional hours and services and make these easily available so that parents can make an informed choice. We expect this to be done through the Provider Self Update.

Safeguarding

2.16 We have an overarching responsibility for safeguarding and promoting the welfare of all children and young people in our area. We have a number of statutory functions under the 1989 and 2004 Children Acts which make this clear, and the Working Together to Safeguard Children statutory guidance sets these out in detail.

2.17 The provider must follow the early years foundation stage (EYFS) and have clear safeguarding policies and procedures in place that are in line with local guidance and procedures for responding to and reporting suspected or actual abuse and neglect. A lead practitioner must take responsibility for safeguarding and all staff must have training to identify signs of abuse and neglect. The provider must also take into account the statutory guidance Working Together to Safeguard Children and must follow the principles in the sharing of information to support provision. All schools are required to have due regard to the statutory guidance Keeping Children Safe in Education and other early years providers will find it helpful to read and follow this guidance.

Equality, Diversity, and Inclusion 

2.18 We will promote equality, diversity, and inclusion, by removing barriers preventing access to funded places and working with providers and parents to give each child support to fulfil their potential. Further information on Equality, Diversity and Inclusion is available on our website.

2.19 All providers should ensure that they have clear policies and procedures in relation to equality, diversity, and inclusion, have due regard to the Equalities Act 2010 and all other national guidance.

Special educational needs and disabilities (SEND)

2.20 We must strategically plan support for children with SEND to meet the needs of all children in their local area as set out in the SEND code of practice: 0-25 years

2.21 The provider must ensure owners and all staff members are aware of their duties in relation to the SEND Code of Practice and the Equality Act 2010.

2.22 We must be clear and transparent about the support available to early years settings through their Local Offer.

2.23 The provider must have arrangements in place to support children with SEND and make this information available to parents by publishing this online. Providers must implement a graduated approach to identifying and responding to children’s needs through an assess, plan, do review cycle.

2.24 All children, including those with additional needs and SEND, should be able to access their full entitlement to funded hours.

2.25 Where a setting has implemented a graduated approach and made reasonable adjustments to support a child with SEND, including the use of the universal inclusion funding, the setting can make an application for individual inclusion funding.

2.26 Disability Access Funding is available for children who are in receipt of Disability Living Allowance and who are accessing some, or all, of their Early Years Entitlement Funding.

2.27 Universal Inclusion Funding is allocated to all termly funded hours that are claimed in each funding period to ensure providers have funding to support children with low level and emerging needs.

2.28 Where a provider does not offer full access to the funded entitlements, or is looking to exclude a child due to their special educational needs and disabilities, we will work with the provider to review their provision and, where necessary, raise their concerns with Ofsted if a setting is not meeting their statutory duties.

Quality 

2.29 The early years foundation stage (EYFS) statutory framework is for schools that offer early years provision (both reception & nursery classes) and providers registered with Ofsted or with an Ofsted-registered childminder agency in England. The EYFS sets out the statutory expectations that all early year’s providers must meet to ensure that children learn and develop well and are kept healthy and safe*

* Providers with exemptions from the EYFS will be funded if a parent wants their child to take up their funded place at an exempt provider and the provider is willing to accept the funding and any other local authority requirements. Individual children with exemptions from the EYFS will be funded.

2.30 Ofsted is the sole arbiter of quality for all funded providers. Ofsted and the Independent Schools Inspectorate have regard to the EYFS when carrying out inspections and report on the quality and standards of provision. Childminder agencies (CMA) are organisations that can register, and quality assure childminders as an alternative to individual childminders registering with Ofsted.

2.31 We must provide information, advice, and training for providers rated less than ‘good’ by Ofsted, those rated as ‘not met’ by the Independent Schools Inspectorate or if they are newly registered. It also applies to childminders on the early years register who take funded children before and/or after school where they are rated as ‘not met’ if the inspection was at a time when there were no young children in attendance. The information, advice, and training covers, but is not limited to, meeting the requirements of the EYFS, effective safeguarding and child protection, and meeting the needs of children with SEND.

2.32 Provision must be offered in accordance with the national parameters on quality set out in Section A3 of the early education and childcare statutory guidance within the early years foundation stage statutory framework.

2.33 We cannot impose requirements which subject the quality of the early years provision, or services provided by the childminder agency, to a quality assessment process, or require the provider to attend any training or other quality improvement activity, other than any training or quality improvement activity identified in an early year’s provision inspection report.

2.34 We aim to fund children in provision that has been judged ‘good,’ ‘outstanding,’ or ‘met’ by Ofsted or the Independent Schools Inspectorate (ISI).

2.35 We are not required to fund places at providers who receive an Ofsted judgement of ‘requires improvement,’ ‘inadequate’ or ‘not met’ but may choose to do so to ensure sufficiency of places.

2.36 All providers must inform us of Ofsted and ISI inspections where the outcome is either ‘not met’ or less than ‘good,’ along with any investigated complaints within five working days of the inspection or visit.

Partnership working

2.37 We will support and promote partnerships and good working relationships between:

• Devon Early Years & Childcare Service and providers
• Providers working with other providers, including childminders, schools and organisations within Devon or in a neighbouring local authority
• Providers and parents
• Devon Early Years & Childcare Service and parents

2.38 The provider should work in partnership with parents, carers, and other providers to improve provision and outcomes for children in their setting. An interactive toolkit has been developed to help providers set up or join a partnership, maximise the benefits of working together and tackle the challenges joint working can bring.

2.39 The provider should discuss and work closely with parents to agree how a child’s overall care will work in practice when their funded entitlement and childcare is split across different providers to ensure a smooth transition for the child.

Section 3: Early Years Entitlement Funding & Eligibility 

Date of Birth Eligibility 

Children who turn 9 months, 2 or 3 years old between:	Will be funded from:
1st September and 31st December	1st January
1st January and 31st March	1st April
1st April and 31st August	1st September

3.1 All providers must check original copies of documentation to confirm a child has reached the eligible age for all funded entitlements i.e., birth certificate, passport, Biometric Residence Permits. The provider must retain paper or digital copies of documents for seven years for audit purposes. Documentation must be stored securely and deleted when there is no longer a good reason to keep the data.

3.2 The Parent Declaration Form is available to use to collect information or you may have your own contract/template that you choose to use instead. Providers must insert their privacy notice to comply with the General Data Protection Requirements (GDPR). The form has been designed to ensure that providers collect all of the information needed to make funding claims from us. Providers must have written consent from the parent to use their code and personal details for funding purposes.

3.3 Providers, choosing not to use the form, must ensure that they have collected all the information needed to make a funding claim and have parent’s permission to share that information with us. We may also share the information with other funded providers, neighbouring authorities, or other Government organisations such as DfE or the Department for work and pensions (DWP) if necessary.

3.4 For children starting in a reception class (this includes the reception class of an independent school which is funded by the local authority), funding ends on the 31st of August regardless of the date when the term starts. For children starting in a reception class of an independent school (not funded by the local authority) funding can continue to be claimed until the end of the funding period in which the child turns compulsory school age.

Where schools choose to stagger entry when a child first starts at school, the parent would need to be charged for any childcare during the transition period. Parents have the right to a full-time place for their child on the first day of term.

3.5 The provider must offer continuous places to all funded children on the understanding that the child remains eligible for the universal entitlement (and the extended entitlement, if applicable) and will be funded until they start at school. If parents choose to delay or defer entry to school the continuation of an early year’s place is a matter to be discussed between the provider and the family. Funding will continue until the child is compulsory school age (the term after a child’s fifth birthday). We would expect that most children will continue in the same early years provision until they start at school.

3.6 For children that become eligible for funding part way through the academic year, they will be entitled to a pro-rata amount of funding as listed below:

Funded from:	15 Hour Entitlement	30 Hour Entitlement
Autumn	570 hours	1140 hours
Spring	380 hours	760 hours
Summer	237.5 hours	475 hours

Targeted 2-year-old funding

3.7 We encourage all parents/carers to check their eligibility for 2 year old funding via the Citizens Portal or by telephoning our Customer Service Centre on 0345 155 1013 who will do an assisted application with them.

3.8 Any parent/carer making an application through the Citizens Portal who is deemed eligible will receive an email or portal message to confirm entitlement. This will include the name of the child, the earliest date that they can take up a funded place and a reference number starting TYF878. Please note that providers must not accept the application reference alone as it is not confirmation of entitlement. You must see an email or portal message to confirm eligibility. We suggest that you keep a copy on your records.

3.9 The provider must only offer funded places to eligible two-year-old children. If there is a change of circumstances which would make the parent ineligible after the child has taken up a funded place, their child can continue to access the two-year-old funding until they become eligible for the 3- and 4-year-old funding. If the parent/carer becomes ineligible prior to taking up a funded space, they are no longer entitled to use this funding.

3.10 Providers offering 2-year-old spaces for children who have not been confirmed as eligible for the funding must have a signed contract with the parent to confirm their booked time and the charges payable.

Working Entitlements

3.11 An additional 15 hours is currently available for working parents of children aged 3 and 4 years old who meet the eligibility criteria. Parents/carers must open a Government Gateway Account to make an application online. Providers should direct parents to the Childcare Service.

3.12 From 1st April 2024, up to 15 hours of funded childcare will be available for 2-year-old children of working parents.

3.13 From 1st September 2024, up to 15 hours of funded childcare will be available for working parents of children aged from 9 months.

3.14 From 1st September 2025, 30 hours will be available for all children of working parents from 9 months until they start in a school reception class.

3.15 Eligible parents will receive a code beginning ‘50’ (or a temporary code beginning ‘11’) which they will need to give to their childcare provider to validate using the provider portal. Parents must apply for their code in good time. The eligibility code can be provided up to 16 weeks before the child is of eligible age, however if an application is made early, it is likely that the parent will need to reconfirm their code prior to taking up a funded place.

3.16 The working entitlement may also be available for foster carers who have other income (employed or self-employed) outside of their fostering role. Foster carers will need to discuss this with the child’s social worker and decide if it is in the best interest of the child and consistent with their care plan. If the social worker agrees, the foster carers will need to apply to the responsible local authority. The responsible local authority will process the application and if successful the foster carer will be issued with a code beginning ‘40’. Foster Carers are required to reconfirm their code every three months.

3.17 The provider must run a check on the code using the Provider Portal to confirm eligibility. If a child attends more than one provider, both providers must run the check.

The Grace Period

3.18 A child will enter the grace period (as determined by the eligibility code) if the parents have failed to reconfirm their code or cease to meet the eligibility criteria as determined by HMRC.

3.19 During the grace period, we will continue to fund a child for the working entitlement if they have accessed working entitlement hours in the previous funding period with their existing provider. Please refer to ‘review previous checks’ or the ‘expiration dashboard’ on the provider portal. Providers are expected to advise parents who become ineligible.

3.20 A child who moves providers during the grace period will not be funded unless there are exceptional circumstances. In these instances, please contact the helpdesk on 01392 385530.

Early Years Pupil Premium (EYPP)

3.21 Early Years Pupil Premium (EYPP) is additional funding for early years providers to improve the education they provide and the outcomes for children. 

3.22 We will identify children by running regular EYPP checks using data collected on the Citizen’s Portal when parents apply for 2-year-old funding and will allocate funding automatically for children in care to Devon.

3.23 Providers should identify parents who circumstances have changed e.g., relationship breakdown, loss of employment etc. which will have resulted in them claiming a qualifying benefit. The parent should be asked to complete the Economic EYPP Declaration Form and their details added to the provider portal when the next task becomes available.

3.24 Providers should also identify children who are in care to another local authority, or who have left care subject to a special guardianship, child arrangement or adoption order. The EYPP Declaration form for Children in Care must be completed and emailed to eyef@devon.gov.uk via egress, with the relevant evidence as soon as is reasonably practicable

Disability Access Funding (DAF)

3.25 Disability Access Funding (DAF) is funding for early years providers to support children with disabilities or special educational needs. It aids access to early years places by supporting providers in making reasonable adjustments to their settings.

3.26 Children who are accessing some, or all, of their early year’s entitlement funding, who are in receipt of Disability Living Allowance and who meet the eligibility criteria can apply for Disability Access Funding.

Section 4: Charging Parents

Further to the updates in the Statutory Guidance for April 2025, there is a greater emphasis on the early years entitlements being accessed free of charge to parents.  There cannot be mandatory charges or an expectation that parents access chargeable extras, purchase additional hours or do a minimum number of days/sessions to access their funded entitlement which could disadvantage some children.  For further details please visit A1.32 Charging of the Statutory Guidance.

4.1 Government funding is intended to cover the cost to deliver up to 15 or 30 hours a week of funded high quality, flexible childcare. It is not intended to cover the cost of meals, other chargeable extras, additional hours, or additional services.

4.2 The provider can charge for meals and snacks as part of a funded entitlement place, and they can also charge for chargeable extras such as nappies or sun cream and for services such as trips and musical tuition. Providers should be mindful of the impact of additional charges, especially on the most disadvantaged families. Where parents are unable, or unwilling, to pay for meals and chargeable extras, providers who choose to offer the funded entitlements are responsible for setting their own policy on how to respond. The provider must have alternative options for parents, including waiving or reducing the cost of meals and snacks or allowing parents to supply their own meals. Early Years Pupil Premium and/or Deprivation Funding can be used to support these families.

4.3 Childminders can charge parents to drop a child off at a nursery or preschool after having attended funded time with them, for example, between 7am to 9am. They can charge for ‘on duty’ time when the child is attending the nursery or preschool for funded (or bought) time. Childminders can also charge for picking a child up from nursery or preschool before that child attends their provision for funded time.

4.4 We will not intervene where parents choose to purchase additional hours of provision or chargeable extras, providing that this does not affect the parent’s ability to take up their child’s funded place. The provider must be completely transparent about any chargeable extras.

4.5 Accessing additional chargeable extras or time cannot be a condition of a child being offered a funded space.

4.6 The provider should publish/make available online their admissions criteria and ensure parents understand which hours/sessions can be taken as funded time. Not all providers will be able to offer fully flexible places, but providers should work with parents to ensure that as far as possible the pattern of hours supports children’s learning and development and is convenient for parents’ working hours.

4.7 The provider can charge parents a deposit to secure their child’s funded place but must refund this in full to parents within a reasonable timescale. We would suggest that the deposit is refunded on an agreed date within one month of the child starting at the setting. The deposit would be non-refundable if the child does not attend. If the provider has a signed contract, they can also claim for a 4 week notice period.

4.8 The provider cannot charge parents top-up fees (the difference between a provider’s hourly or sessional charge and the funding they receive from us to deliver funded places) or require a registration fee as a condition of taking up a funded place.

4.9 The provider must ensure that charging policies, contracts, invoices, and receipts are clear and itemised, so parents can see that they have received the funded entitlement without a charge and can understand the fees they must pay for additional hours or services. The provider must also ensure that there is sufficient detail on invoices and receipts for parents to be able to identify the provider that the child is attending i.e., setting logo. Parents attending more than one provider may otherwise confuse the arrangements that they have with different providers.

4.10 The provider must not split their day and charge for the lunch time (food can be charged for).

4.11 Please direct parents to Childcare Choices for details of other help that is available for childcare costs.

Notice Periods

4.12 Providers may claim for a notice period of up to 4 weeks, but only when a notice period is included in their policies and parents have signed a contact agreeing to this.

4.13 Where a parent has decided to leave a funded place, providers can claim up to a maximum of 4 weeks (28 days) funding from the last day of attendance or the date the parent gave notice (whichever is earlier). No distinction is made between times that are open or closed.

For example: a parent gives notice to a term time provider on the 31st March. The 4 week notice period would therefore end on the 28th April. The provider is closed for 2 weeks (Easter holidays) during the notice period and therefore only 2 weeks of funding can be claimed.

4.14 The amount of notice required for chargeable hours is at the discretion of the provider.

4.15 If a provider does not have a signed contract with the parent specifically acknowledging the notice period required, funding cannot be claimed.

4.16 If the parent leaves a provider that has a notice period without giving notice, that provider may claim funding in accordance with paragraph 4.13 above. Should the parent choose to attend another provider before the notice period ends, the parent will be responsible for any costs at the new provider for the remainder of the notice period.

4.17 Where a child claims funding from us and moves to another local authority, we will honour the notice period.

4.18 Providers may also apply a notice period for changes to funded hours i.e., where a parent reduces the attended time at short notice, but this also needs to be included in the policy/signed parent contract.

4.19 If there is a dispute over funded time that cannot be resolved between the provider and parent, we may require providers to produce a copy of the signed and dated parent contract which clearly sets out the notice period.

4.20 We may also request a scanned copy of the attendance register, and accounts through a secure egress email. Providers must respond to these requests within seven working days.

4.21 Where a provider has their Ofsted registration suspended or cancelled they will forfeit their right to claim funding for a notice period (see 10.2). The funding will follow the child to the new provider with immediate effect. Any notice period with regards to chargeable time is a private fee paying arrangement between the parent and the provider.

4.22 Occasionally, there will be exceptional circumstances where a parent cannot comply with the notice period. In these exceptional circumstances, providers should contact the funding helpdesk on 01392 385530 for advice.

Section 5: Flexibility

5.1 Provision must be offered within the national parameters on flexibility as set out in Section A2 of Early Education and Childcare Statutory guidance for Local Authorities.

5.2 The provider should work with the local authority and share information about the times and periods at which they are able to offer funded entitlements to support the local authority to secure sufficient stretched and flexible places to meet parental demand in the local authority. The provider should also make information about their offer and admissions criteria available to parents at the point the child first accesses provision at their setting.

5.3 To secure flexibility we will:

• Consult with parents and involve them in local assessment of demand for flexibility
• Act as broker between overall parental demand in the area and provider capacity, seeking to provide the maximum possible flexibility for parents
• Support providers to establish parent declarations setting out their hours and patterns of take up of funded places
• Encourage providers to offer flexible packages of funded hours, subject to the following standards which will enable children to access regular, high-quality provision in keeping with the evidence of the benefits of doing so, whilst maximising flexibility for parents and ensuring a degree of stability for providers
• Ensure parents and providers are aware that there is no requirement that funded places must be taken on, or delivered on, particular days of the week or at particular times of the day
• Enable parents to take up their child’s funded place in patterns of hours that ‘stretch’ the child’s entitlement by taking fewer hours a week over more weeks of the year, where there is provider capacity and parental demand e.g., 12 hours per week for 48 weeks for universal or 23 hours per week for 48 weeks for extended
• Ensure parents are aware that the entitlement to a funded place does not offer a guarantee of a place at any one provider or a particular pattern of provision
• Support parents to identify providers who can offer funded places on the days and times needed by the parent
• Encourage providers to work with parents to ensure continuity of care for children and effective transitional arrangements to support children’s learning and wellbeing when enabling children to take up a funded place at more than one provider, or on more than one site.

5.4 Provision must be offered within the national standards on flexibility as set out in the Early Education and Childcare Statutory Guidance for Local Authorities.

• Between 6am and 8pm
• Maximum of 10 hours per day
• No minimum session length (subject to the requirements of registration on the Ofsted Early Years Register)
• Maximum of two sites in a single day.

5.5 The provider can choose to have the following models:

• Stretched only (anything over 38 weeks and up to 52 weeks of the year)
• Term time only (over 38 weeks of the year)
• Combination of term time and stretched
• Holiday clubs and play schemes.

5.6 Whichever models are chosen they must be made available for all funded children regardless of the funding entitlement they are accessing.

5.7 Parents can share funded time between models at multiple providers if attendance fits with the national framework.

5.8 Funded time can be delivered outside of term times and at weekends.

5.9 Providers cannot insist a minimum number of sessions or days are booked, that the full funding is used at their provision, or those families are prioritised as parents may need the flexibility to use multiple provisions when working and where a child lives in two different locations.

5.10 The provider must also make information about their offer and admissions criteria available to parent enquiries in advance of the child joining the provision.

Section 6: Business Planning – Claiming Funding

This section sets out what information we need from providers to support the payment and delivery of the entitlements:

6.1 The provider must maintain accurate financial and non-financial records relating to the funded entitlement places e.g., attendance registers, contracts, invoices and must give the local authority access to these if requested. We suggest that financial documents are kept for seven years for compliance and audit purposes.

6.2 Funding Periods within the academic year are as follows:

Funding Period:	Dates:
Autumn	1st September – 31st December
Spring	1st January – 31st March
Summer	1st April – 31st August

6.3 An academic calendar with funding periods and headcount weeks is provided each year. The calendar does not allow for non-pupil days taken by schools. Term-time only providers may choose the same dates as the local schools and those dates must be communicated to parents. The academic calendar shows the maximum number of hours that are available in each funding period based on term time and stretched models.

6.4 The provider must submit the headcount and amendment tasks for each age group through the provider portal by the relevant deadline dates for each funding period. If you don’t have any funded children of a particular age to claim for, or any changes/amendments to make, you must still submit a return. Failure to submit tasks by the deadlines may result in delays to payments and will incur administrative charges.

6.5 New children need to be added to the task in order to claim funded hours. Please ensure that the legal name is used (as confirmed on the date of birth evidence).

6.6 We cannot fund decimal claims. A weekly claim can be in multiples of 0.25 hours (15 minutes). The total funding period must be claimed in multiples of 0.5 hours. If there is an odd number of weeks, your total claim for the funding period must be reduced to the nearest 0.5 hour (half hour/ 30 minutes). Data changes will be subject to an administrative charge.

6.7 The provider must ‘edit’ the headcount task and record:

• the total hours booked in headcount week (funded plus charged for hours)
• total funded hours claimed at headcount week
• total hours claimed for the funding period (using the formula below)
• indicate whether the child is accessing term-time, stretched etc.

Weekly funded hours x complete weeks open + part week hours – any known closures.

6.8 If a child is due to start shortly after headcount week, or attend for school holidays only, please enter them on to the task with the correct start date, ‘0’ hours booked and claimed in headcount week and calculate total funded hours required for the funding period.

6.9 Claims must be made as per the contract or agreement that the provider has with the parent or by parents completing the headcount claim form. The headcount week claim is total hours including any absences or closures.

6.10 Providers must review contracts for each funding period to ensure there are no changes to funded time or funded hours being used elsewhere.

6.11 Where funding is shared, or children move settings during the funding period, providers must follow the conflict process at each headcount or amendment to confirm hours being claimed (including any notice period) and prevent an overclaim of funding.

6.12 Providers must update their claim on the amendment task if any of the following changes have taken place:

• children have increased/decreased their funded hours
• children have joined
• children have left.

6.13 Claims will only be paid when the available number of hours within that funding period have not been exceeded.

6.14 We do not recommend that a child attends a provider for less than one funded hour per day. However, if a child’s attendance results in a half-hour claim needing to be made this can be accommodated.

6.15 The provider must make a claim based on the weekly hours agreed with the parent (up to a maximum of 15 or 30) during headcount week and the total hours for the termly funding period. A maximum of 570 hours (universal entitlement) or 1140 hours (extended entitlement) can be claimed in any academic year (September to August). This only applies to children that are eligible for the whole of the academic year and will be pro-rata for children who become eligible part way through.

6.16 Providers that are open for more than 38 weeks of the year must ensure that the times that can be taken as part of the child’s entitlement do not exceed 570 or 1140 (or pro-rata amount if they become eligible part way through the year) depending on whether the child is accessing a universal or stretched offer.

6.17 Providers that are open for fewer than 38 weeks of the year will be paid for the hours claimed during the times they are open. The provider should ensure that parents are aware that, even if their child is claiming the maximum 15/30 hours a week, it will not be possible for them to receive their full entitlement of 570/1140 funded hours at that provision. The parent may wish to use any remaining hours at a provider during the holidays, but if 30 hour funded, they must be within their eligibility dates.

6.18 Term Time providers may not always be open for 38 complete weeks (Monday – Friday) in a year thus a claim of 15 hours a week could mean a parent may either exceed, or not reach their entitlement of 570 funded hours. This could occur because of the days attended by the child and the number of part-weeks the provider is open. A part-week occurs when a provider is not open from Monday to Friday in any given week. There could be a variety of reasons why a provider may not open on a certain day, examples being bank holidays, training days or starting/ending a term mid-week. Providers must ensure parents are aware of any part-weeks that they are open so they can plan accordingly on how best to receive their annual 570 or 1140-hour entitlement.

6.19 Occasional closures for example the premises are used for polling days, will be funded, however, providers should try to offer alternative hours elsewhere for children affected by the closure.

6.20 Planned closures for example the premises are closed for refurbishment, will not be funded.

6.21 Emergency closures for example weather related, flooding, or heating problems will be funded but you should try to offer hours at another time if possible.

6.22 Bank Holidays and weekends can be offered as funded time if the provider is open. Funding cannot be claimed if the provider is closed on a bank holiday and an adjustment might be needed for the part-week unless those hours can be offered elsewhere within the week. Alternatively, if a parent has additional chargeable hours these could be funded, and the parent’s fees reduced for that part-week.

6.23 Closure of service due to a childminder’s inability to work because of illness. This closure could happen because the childminder is ill or because other people living within the domestic premises are ill, or both, and as a result the childminder does not open. If the closure has an impact on a child’s booked funded time the childminder must immediately inform the parent of the affected child/ren. If the child attends another provider for the period of the closure the funding would follow the child and a reduction would need to be made to the termly claim. If alternative childcare is not required, the childminder must reduce their termly claim unless they are able to offer the funded hours at an alternative time.

6.24 We report on all funded children in attendance during census week each January. Information on funded children is sent to the Department for Education as part of the statutory Early Years Census. Schools and academies make their own census returns. The numbers in these census returns inform the amount of funding that we will receive for the following year. If a child is not reported on a return, we will not receive the funding for that child. It is essential that providers submit their funding claims by the specified deadlines each funding period.

Attendance

6.25 If a funded place has been booked and a child does not have consistent (or any) attendance, we expect the provider to make every effort to encourage the family to take up the hours booked. If the attendance does not improve, the hours in the following funding period should be revised with the parent. We would not expect a provider to continue to make a claim for funding where a family has clearly decided that they will not attend hours that have been booked. In these cases, the claim should be amended on the relevant headcount or amendment task.

6.26 If a parent has contacted the provider about an attendance issue, then an agreement needs to be made between the provider and the parent about the best course of action for the child. If the issues affecting attendance are shared with the provider, then it may be helpful to sign post to other professionals if the family requires support. We encourage all parents to take up the full universal entitlement of 570 hours and the full extended entitlement of 1140 hours.

6.27 Where a family is on a long holiday of more than two weeks, the first two weeks of the holiday will be funded. There are three options that the provider should discuss with a parent:

• Option 1: The parent could continue to use their funded allowance to retain their space. The parent would be using part of their 570 or 1140-hour annual entitlement and the provider can claim the funding in the normal way
• Option 2: If the parent does not want to use their funding, but does want to keep the space, the provider could charge a retainer
• Option 3: The parent may choose to leave the provider and therefore not use any funding or pay any retainer but risks losing the space when they return. The first two weeks holiday would still be funded as would a notice period if applicable.

6.28 Similarly, where a child is visiting Devon on an extended holiday, for more than six weeks, they could attend an early year’s provider and be funded for the universal entitlement if they are of an eligible age. This would be dependent on the funding that has already been allocated if they have been attending another provision.

Overclaims

6.29 An overclaim occurs when a parent chooses to use funding at more than one provider and the total weekly or termly hours exceed the hours available.

6.30 Where there is a combination of term time and stretched provision being accessed consideration must be given to the impact on the annual entitlement for that child.

6.31 We will check for weekly and termly overclaims after headcount or amendment data has been submitted as part of our routine data checks.

6.32 Where an overclaim has been identified we will send a message to all providers to advise and will automatically reduce the funding for all providers involved if we have not been advised of a resolution. Once the amendment data has been reconciled if there is a discrepancy regarding the hours claimed at two or more providers, we may ask the provider to transfer the funding to another provider.

Cross border checks

6.33 We work closely with neighbouring local authorities (Somerset, Dorset, Torbay, Plymouth, and Cornwall) to ensure that children sharing hours with providers in different counties do not overclaim. If an overclaim is identified both providers will have their funding reduced until the parent confirms where they want the funding to be claimed. We will fund providers within the local authority area regardless of where the child lives.

6.34 No funding will be transferred to another local authority area if a child moves in or out of Devon.

Section 7: Payments from Devon County Council

7.1 Maintained schools, governor run pre-schools and foundation stage units will receive their funding in full for the term once the amendment task data has been processed.

7.2 All other providers will receive monthly payments within each funding period with two adjustment payments for headcount and amendment, if required. The monthly payment is a FORECAST of the total funding payment that has been estimated for the funding period. For group providers, this is calculated as a percentage of the headcount claim from the previous funding period. Childminders and out of school providers will be emailed each term and asked for an estimate of the total number of funded hours for each age group for the relevant period to calculate the termly forecast. Monthly payments are processed during the first 5 working days of each month.

7.3 If a response is not received from the childminder or out of school provider by the deadline, a forecast payment will not be made. If funding is required and claimed during the headcount task, payment will be made in full with the headcount payments later in the funding period.

7.4 If the number of children in attendance is due to change significantly for the following funding period, providers should notify the funding helpdesk of the estimated number of hours for each age group, and we will increase or decrease a forecast payment, if appropriate.

7.5 The headcount payment is based on the total hours claimed on the headcount task for the funding period, less the total monthly forecast payments. The balancing headcount payment is processed approximately 6 weeks after the headcount task deadline and will include SEND Individual Inclusion Funding, EYPP and Disability Access Funding (DAF) if applicable. The remittance advice will show AUT/SPR/SUM for the appropriate term followed by a ‘2’.

7.6 The amendment payment is made for changes to claimed hours on the amendment task that occurred during the funding period. This payment will be processed by the end of the calendar month following the task deadline. The amendment payment will be the difference between the monthly forecast and the headcount payment and will include SEND Individual Inclusion Funding, EYPP and DAF (if applicable). The remittance advice will show AUT/SPR/SUM for the appropriate funding period followed by a ‘3’.

7.7 We may offset outstanding debts against early years funding payments. This could include overclaims from a previous funding period, adjustments made in the amendment period or debts relating to other Devon County Council departments.

7.8 Since September 2018 there has been an annual allocation of targeted deprivation funding for providers that have had more than 25% of children living within an area of deprivation. Data from the previous financial year will look at the Index of Multiple Deprivation score of the child’s postcode as a measure.

7.9 The annual allocation of targeted deprivation funding will be pro-rata for each funding period based on the number of months and is paid separately to the headcount and amendment payments.

7.10 There has also been a universal deprivation and SEND supplement allocated to every 3 and 4-year-old funded hour since September 2018. This has been extended to all funded hours from April 2024.

Section 8: Removal of a funded place

8.1 Where a parent/carer’s behaviour is unreasonable e.g., abusive, destructive, or disruptive, providers could consider withdrawing a funded place. Adequate policies must be in place that comply with all relevant legislation. The removal of a funded place should only be considered as a last resort.

8.2 The funded place must not be removed if the parent is unable to pay for additional sessions and/or charges and has a debt with the provider but you can amend your contract so funded time only is provided. This will mean the parent doesn’t occur additional charges.

Section 9: Compliance

9.1 We will carry out checks and/or audits on providers to ensure compliance with the requirements of delivering the funded entitlements in line with the Early Education and Childcare Statutory Guidance for Local Authorities.

9.2 The audit section or Early Years Funding Team will contact providers directly to arrange a mutually convenient time to be audited or request information to be provided. Confirmation of the audit will be sent in writing with a list of the documents and records that will need to be inspected during the audit visit. Please ensure that all information is readily available on the audit date or sent as requested.

9.3 The provider will be asked to take steps to rectify any non-compliance within a specified timescale.

9.4 In the event of a provider failing to rectify any non-compliance, or if there is a fraudulent claim, inappropriate use of funding, failure to comply with any of the terms and conditions or if there is a serious breach, we may decide to withhold further funding or may seek to recover funding already paid. The provider will be informed of such decisions in writing and given an opportunity to make written representations to us, prior to the final decision being made, and subject to the right of appeal.

9.5 As funding cannot be withdrawn from maintained schools the Early Years and Childcare Service will work with the school to address compliance issues.

9.6 We will discuss matters relating to the providers registration with Ofsted, as necessary.

9.7 Should a provider not have a valid certificate of registration or has a problem of any kind with their Ofsted registration at any time and for whatever reason, we will withhold further funds from the provider and may seek to recover funds already paid either in whole, or in part. The provider may request to have their funding reinstated once in receipt of a valid certificate of registration from Ofsted unless this is due to an inadequate Ofsted outcome.

9.8 We are also audited to check that accurate records are kept for the processing of funding and payments.

Section 10: Termination & Withdrawal of funding

This section does not apply to maintained schools.

10.1 Suspension of registration by Ofsted, the ISI, a breach of statutory requirements, a ‘not met’ judgement with enforcement or safeguarding issues may result in the termination of the arrangement and withdrawal of funding.

10.2 Our terms and process for termination/withdrawal of funding are set out in this section below. Termination provisions include those required by regulation 7 (Termination of the arrangements) of the Local Authority, (Duty to Secure Early Years Provision Free of Charge) Regulations 2014 and regulation 37 (Arrangements between local authorities, early years providers: termination) of The Childcare (Early Years Provision Free of Charge) (Extended Entitlement) Regulations 2016 and Early Education and Childcare: Statutory Guidance for Local Authorities.

Ofsted/ISI outcomes

10.3 Any registered provider judged as ‘requires improvement’, ‘not met’ or ‘inadequate’ by Ofsted, or the Independent Schools Inspectorate must inform the Early Years and Childcare Team Manager for their area within five working days of the inspection taking place.

10.4 The Early Years Team Manager will discuss the inspection judgement and notify the relevant personnel within Devon County Council of the outcome e.g. Early Years and Childcare Adviser and/or Early Years Consultants and advise that they will be in contact and supported to develop an action plan with clear timescales and review dates as part of the Early Years ONE Devon – Support for schools and settings process. Providers must fully co-operate with the Early and Childcare team.

10.5 The Early Years Entitlement Funding will not automatically be suspended if providers work with us to make the necessary changes identified by Ofsted or ISI inspectors. There must be evidence of change being implemented, embedded, and sustained. Failure to evidence this could lead to funding being temporarily removed for any new or transferred children.

10.6 On publication of the report the provider must write to parents informing them of the outcome and provide them with the option to either remain at the provision or transfer to another provider. Where a parent chooses to move their child to another provider a notice period on the funded time would not apply. A record of responses must be kept.

10.7 The Early Years Team Manager, on behalf of Devon County Council, will send the provider a letter informing them they are being entered onto the Early Years ONE Devon – Support for schools and settings process and what this means for them. Contracted organisations will be copied into the letter, including the Family Information Service who will update ‘Find childcare in Devon’ with the Ofsted judgement.

10.8 A provision will remain on the Early Years ONE Devon – Support for schools and settings process until a re-inspection has taken place and a higher judgement of ‘good’ or ‘met’ has been given.

10.9 If there are serious safeguarding concerns i.e., the safety and welfare of children is at risk, funding will be withdrawn with immediate effect.

10.10 If the provider is removed from the Directory of Providers, we will advise all parents that are claiming funding, in writing, of the removal. The provider must inform the Funding Helpdesk by calling 01392 385530 or emailing about matters that impact upon the provider’s registration with Ofsted, as they arise. The provider must thereafter keep the helpdesk informed about developments and changes in this regard.

Section 11: Appeals Process

11.1 A provider that is denied approval to offer the funded entitlements or has their funding withdrawn by us may appeal the decision provided it complies with our Appeals Procedure within the stated timescales.

Section 12: Complaints Process

12.1 The provider must ensure they have a complaints procedure in place that is published and accessible for parents who are not satisfied their child has received their funded entitlement in the correct way, as set out in this agreement and in Early Education and Childcare Statutory guidance for local authorities. The provider must promptly provide a copy of their complaint’s procedure to us on request.

12.2 Our Complaints Procedure can be used by parents who are not able to resolve their concern directly with the provider and who are not satisfied that their child has received their funded entitlement in accordance with the legislation or as set out in this agreement and in Early Education and Childcare Statutory guidance for local authorities.

12.3 The Complaints Procedure can also be followed by providers.

12.14 If a parent or provider is not satisfied with the way in which their complaint has been dealt with by us or believes the local authority has acted unreasonably, they can make a complaint to the local authority Ombudsman. Such complaints will only be considered when the local complaints procedures have been exhausted.

Section 13: Charging Policy 

Funding deadlines are set to ensure funding can be paid at the earliest opportunity.

When submission deadlines are missed tasks must be re-issued. This can delay data quality checks as they cannot be completed until all of the headcount /amendment data has been submitted. This can create a significant amount of additional administration and it is for this reason that we have a charging policy.

The following charges will be implemented from 1st September 2024:

Headcount/Amendment charges	1st	2nd	3rd	4th
Task reissues (within the funding period)	£20 per task	£30 per task	£40 per task	£50 per task

Please note: if you miss the deadline in a subsequent funding period, the incremental charges above will apply:

Example: Spring headcount deadline missed, tasks reissued, total charges £40 Spring amendment deadline missed, tasks reissued, total charges £60 (2nd missed deadline).

Additional charges	1st occasion	2nd occasion	3rd occasion
Additional payments (Only processed in exceptional circumstances)	5% or up to a maximum of £50
Decimal claim errors	£5 per child	£10 per child	After the second amendment, claims will be removed
Adjustments for incorrect claims (see below)	£5 per child
Use of an incorrect working parent entitlement code	£10 per child
Census returns not submitted by the deadline (charge per follow up)	£20	£30	£40

Headcount Tasks 

• If the task has not been submitted (‘started’ & ‘not started’) by the deadline, the task will automatically be re-issued if you have received a forecast payment. If you haven’t received a forecast payment you will need to request for the task to be reissued
• Any reissued tasks will need to be submitted within 24 hours
• Once the deadline has been missed for three consecutive funding periods no further headcount tasks will be reissued and no further payments will be made until the amendment task has been submitted and paid
• If you do not have any funded children, you must submit the task with a nil return. Failure to do so may be subject to an administrative charge in the future.

Amendment Tasks 

• If the amendment task has not been submitted by the deadline, we will only re-issue on request.

Additional Payments

These will only be processed in exceptional circumstances.

• Increase to calculated forecast/monthly payments
• Incorrect claim for missing children/hours
• Census returns that are not submitted by the deadline.

Providers can request for their forecast to be recalculated each funding period if they expect their numbers to be significantly higher or lower than the previous funding period, but these requests need to be received by the deadline.

Decimals 

Weekly claims need to be in multiples of 0.25 hours and termly claims need to be in multiples of 0.5 hours. Charges for any amendments will be as per the table above.

Incorrect claim adjustments

• Providers who do not reply to conflict/audit emails and a reduction needs to be made to the claim
• Providers who do not follow the conflict process
• Providers who do not reduce the termly hours for children who leave part way through a funding period
• 570 overclaims.

Use of an incorrect working parent entitlement code

If you enter a working entitlement 11-digit code against an incorrect child on the headcount/amendment task you will incur an administrative charge. The provider portal will clearly display a notification in red if an incorrect code has been used but will not prevent you from submitting the task.

When submitting headcount/amendment tasks please ensure that the information that you have entered is accurate to avoid any administrative charges.

All charges will be deducted from your next payment from Devon County Council.

Section 14: Useful Links 

Early Years Entitlement Funding (devon.cc/eyef)

Early Years Pupil Premium (EYPP) (devon.cc/eyp)

Disability Access Funding (devon.cc/daf)

Special Educational Needs and Disability (SEND) – Inclusion Funding for Early Years (devon.cc/eysen)

Early years funding updates (devon.cc/ey-updates)