Funding for early years and childcare settings
There's a range of funding available to early years settings and childminders, from early education entitlements to specific funding for children with additional needs.
To become and remain a sustainable childcare provider, you need to be aware of this funding and the opportunities to help you to maximise your income.
Childcare funding for two years olds receiving additional support (15 hours)
Eligible two year olds are able to receive 570 hours of free childcare a year. This can be taken for a minimum of 38 weeks (equivalent to 15 hours a week) or can be stretched up to 51 weeks.
A child will be eligible if their parent or carer receives one of the following:
- Income Support
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- support through part 6 of the Immigration and Asylum Act
- tax credits, and has an annual income under £16,190 before tax
- the guaranteed element of State Pension Credit
- the Working Tax Credit 4-week run on (the payment you receive when you stop qualifying for Working Tax Credit)
- Universal Credit
Children are also entitled to a place if:
- they’re looked after by a local council
- they have a current statement of special education need (SEN) or an education, health and care plan (EHCP)
- they get Disability Living Allowance
- they’ve left care under a special guardianship order, child arrangements order or adoption order
A variety of different providers can offer this service including:
- childminders
- pre-schools
- playgroups
- day nurseries
- family hubs
- school nurseries
You can access the scheme if, as a provider, you have a minimum Ofsted rating of 'good' or 'outstanding', or if you're yet to have your first inspection.
Universal early education funding (EEF) for three and four year olds (15 hours)
Early education funding (EEF) enables all three and four-year-old children to receive 570 hours of free childcare a year. This can be taken for a minimum of 38 weeks (equivalent to 15 hours a week) or can be stretched up to 51 weeks, and can be used across two providers.
A variety of different providers can offer this service including:
- childminders
- pre-schools
- playgroups
- day nurseries
- family hubs
- school nurseries
To apply for this scheme parents need to:
- fill in a parent declaration
- fill in an ethnicity form
- view our funding calendars and timetables
- find out about the funding agreement between Barnsley Council and early education providers
- find out about the early years operational guide
You can find all of these on Virtual Family Hub.
Extra early education funding (EEF) for three and four year olds (30 hours)
All children are entitled to early education funding (EEF) universal hours, but this can be extended up to a maximum of 1140 hours (30 hours a week for 38 weeks) for eligible families.
Eligibility
Families are eligible for the extra entitlement of early education funding if both parents are working (or the sole parent in a lone parent family) and each parent or carer earns on average:
- a weekly minimum salary equivalent to 16 hours at National Minimum Wage (NMW) for under 25 year olds, or National Living Wage (NLW) if over 25 years old; and
- less than £100,000 per year
Or:
- both parents are employed but one or both parents is temporarily away from the workplace on parental, maternity, paternity or adoption leave, or is receiving statutory sick pay; or
- one parent is employed and the other parent has substantial caring responsibilities based on specific benefits they receive for caring; or
- one parent is employed and one parent is disabled or incapacitated based on them receiving specific benefits
Additional information
- Parents do not need to actually work 16 hours per week, but their earnings must be equal to at least 16 hours work at NMW or NLW depending on their age. This equates to a minimum income requirement for a parent or carer of £107.20 a week for 21 to 24-year-olds, or £115.20 a week for those aged 25 or over.
- A parent or carer will be eligible if they expect, on average, to earn this amount over the coming three months. For example: a parent or carer on a zero-hours contract will qualify if, on average, they work two weeks out of every three and when they are working they work 25 hours a week at NMW.
- ‘Parent’ means a person who has parental responsibility for the child. In cases where a parent has remarried or is living with a partner, the step-parent or partner must also meet the earning threshold.
- Foster carers are eligible for the additional entitlement for their own children if they meet the criteria, and for the children in their care.
- Parents or carers can check if they're eligible for the additional entitlement by applying on GOV.UK. They need to do this every three months to re-check their eligibility.
Early years pupil premium (EYPP) funding
Early years pupil premium is additional funding for early years settings to improve the education they provide for disadvantaged three and four-year-olds.
Early years inclusion grant
The early years inclusion grant can help your setting to include disabled children, and can support the costs associated with:
- employing an additional worker to increase staff ratios in sessions
- purchasing specialist equipment to meet the specific needs of a child
For more information about the early years inclusion grant, fill in our online enquiry form.
Short breaks
Short breaks are one of a range of services that support disabled children and their families. Short breaks are to give:
- disabled children and young people enjoyable experiences away from their primary carers, contributing to their personal and social development and reducing social isolation
- parents and families a necessary and valuable break from caring responsibilities
Short breaks include day, evening, overnight and weekend activities. They can last from just a few hours to a few days, and occasionally longer.
Short breaks can take place in the child's own home, the home of an approved carer, in an early years childcare setting, or at a residential or community setting.
For more information about short breaks, fill in our online enquiry form.
External funding for not-for-profit organisations
There are many opportunities for not-for-profit organisations to receive grants and funding from a range of sources, and the South Yorkshire Funding Advice Bureau (SYFAB) is a useful place to start for help, advice and training for fundraisers.
If you're looking for investment, loans or other finances you'll need to have a solid business plan and be able to show that you've researched, risk-assessed and can demonstrate viability through detailed projections of your business.
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