Early Years Funding for 2, 3 and 4-year-olds
What is Early Years Funding?
The government provides funding for all 3 and 4-year-old children and some 2-year-olds to attend early years provision for 570 hours per year.
From September 2017, eligible 3 and 4-year olds will be entitled to 1140 hours per year (30 hours a week term time). Please see the Extended Entitlement webpage for more information.
Who is eligible?
A 2-year-old can get funded childcare if the parent/carer gets one of the following:
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Universal Credit and your household income is £15,400 a year or less after tax, not including benefit payments
- Pension Credit
- Child Tax Credit, Working Tax Credit (or both), and your household income is £16,190 a year or less before tax
- the Working Tax Credit 4-week run on (the payment you get when you stop qualifying for Working Tax Credit)
A 2-year-old can also get funded childcare if any of the following apply
- they’re looked after by a local council
- they have an education, health and care (EHC) plan
- they get Disability Living Allowance
- they’ve left care under a special guardianship order, child arrangement order or adoption order
Parents/carers of children that fall into one of these categories will need to attach evidence to support their application.
If you’re a non- UK citizen who cannot claim benefits
If your immigration status says you have ‘no recourse to public funds’, you may still get free childcare for your 2-year-old. You must live in England and your household income must be no more than:
- £26,500 for families outside of London with one child
- £34,500 for families within London with one child
- £30,600 for families outside of London with two or more children
- £38,600 for families within London with two or more children
- You cannot have more than £16,000 in savings or investments
Parents will need to complete the ‘Application for funded early education for two-year-olds from families with no recourse to public funds (NRPF)’ and attach this to their online application, along with any supporting evidence such as bank statements, wage slips etc. You can request the application form by contacting the Early Years Funding team email@example.com
Children are eligible to receive the Early Years Funding from the start of the funding period following their 2nd birthday for a maximum of three funding periods. Parents/carers cannot apply before the start of the funding period in which their child’s second birthday occurs.
A 2 year old funding application can be made and eligibility checked online or by phone: 0345 155 1013. Parents/Carers will need their National Insurance Number or National Asylum Support Number (if applicable) in order to make a 2 year old funding application.
When are children eligible?
Child’s birthday between: 2-year-old applications can be made no earlier than: Funding can start from: 1st January and 31st March 1st January Start of the funding period beginning on or following 1st April after the child’s second birthday 1st April and 31st August 1st April Start of the funding period beginning on or following 1st September after the child’s second birthday 1st September and 31st December 1st September Start of the funding period beginning on or following 1st January after the child’s second birthday
3 and 4-year-olds
All 3 and 4-year-olds are eligible for the Early Years Funding from the start of the funding period following their third birthday until they start school (usually at statutory school age – the term following their fifth birthday).
Extended Entitlement for 3 and 4 year olds
A 3 or 4-year-old can get the extended entitlement of up to 1140 hours of funded childcare (30 hours per week, term time) if both parents or lone parent:
- earns at least £115 a week or works more than 16 hours at the National Living Wage (unless you became self-employed less than 12 months ago), or expect to earn at least £111 a week or work more than 16 hours at the National Minimum Wage (unless you became self-employed less than 12 months ago).
- expect to earn at least £61.92 a week if you’re under 18, £84.80 a week if you’re aged 18-20 or £52.80 a week if you’re an apprentice (either under 19 or in the first year of your apprenticeship)
Both parents or lone parent must also:
- live in England
- expect to have income of less than £100,000 each a year
How much will I get paid for providing the Early Years Funded childcare?
As of 1st April 2022, early years providers are funded to provide childcare at a rate of £5.26 per hour (Base Rate £5.24 + Deprivation £0.02) per eligible 2-year-old.
The hourly rate paid for 3 and 4 year-olds will be :
From Hourly Rate Description September 2017 £4.02 = Base Rate of £3.98 + Universal SEND £0.04 April 2018 £4.06 = Base Rate of £4.02 + Universal SEND £0.04 September 2018 £4.08 = Base Rate of £4.02 + Universal SEND £0.04 + Deprivation £0.02 April 2020 £4.16 = Base Rate of £4.10 + Universal SEND £0.04 + Deprivation £0.02 April 2021 £4.20 = Base Rate of £4.14 + Universal SEND £0.04 + Deprivation £0.02 September 2021 £4.22 = Base Rate of £4.14 + Universal SEND £0.04 + Deprivation £0.04 April 2022 £4.38 = Base Rate of £4.30 + Universal SEND £0.04 + Deprivation £0.04
Can I offer the Early Years Funding to parents?
To offer the Early Years Funding for 2, 3 and four-year olds a provider must:
- be on either the Early Years Ofsted Register, Schools Ofsted Register or inspected under the Independent Schools Inspectorate
- be open for a minimum of 33 weeks per year, during school term time
- allow their details to be listed on Pinpoint – a directory of service in Devon
The funding is claimed through a secure online database therefore providers should have a business email address and internet access.
Please note that to offer the Early Years Funding for 2-year-olds, you should be judged as good or outstanding by Ofsted. New providers who have not been inspected will be funded.
All information on policy, procedure, systems and processes for providing the Early Years Funding can be found in the Local Conditions of Funding.
How do I register?
If you wish to register to become funded to offer the Early Years Funding for 2, 3 and 4-year-olds you will need to:
- Request a copy of the Provider Agreement from the Early Years Entitlement Funding Team – phone: 01392 385530 or email: firstname.lastname@example.org
- Read all the information sent, including the Provider Agreement
- Return the Provider Agreement Form (Annexe A) to email@example.com
If you are already registered to offer the Early Years Funding for 3 and 4-year-olds and wish to register to become funded to offer this to eligible 2-year-olds, please fully complete and return the Provider Agreement Form to firstname.lastname@example.org.
What do I need to do?
Each term you will need to:
- Check that children are eligible for the Early Years Funding
- Complete a claim through the Provider Portal (secure online database)
- Make amendments for any children that have joined or left during the term
- Inform the helpdesk if there have been any significant changes to number of children attending for funded hours or if you have no funded children.
For more information on the process for claiming the Early Years Funding please see:
Providers must notify the helpdesk immediately if they are unable to meet the conditions of the agreement. This will not necessarily affect the continuation of the service and Devon County Council may be able to offer support to enable it to continue.
Early Years Pupil Premium
The Early Years Pupil Premium (EYPP) is additional funding for early years providers to enhance the education they provide for eligible 3 and 4-year-olds.
Working in partnership with Devon County Council
We ask that all providers that receive funding through Devon County Council’s Early Years and Childcare Service follow this publicity guidance. Thank you for working with us.
- Academic Calendar 2021-22
- Academic Calendar 2022-23
- Child Registration Form Template
- Conflict Buster – Guidance
- Conflict Buster Form
- Date of birth eligibility
- Early Years Funding Information for Providers
- Egress Switch
- Funding calculator
- Parent Declaration Form
- Provider Agreement
- Provider Portal Training Notes
- Portal Guidance Notes – Amendment Task – 30 hours Extended Entitlement
- Supplementary Form
- Complaints Procedure
- Appeals Procedure
- Frequently asked questions
- Contact Us
- Useful links