This guide is based on the statutory guidance - Early education and childcare – especially section A1.32 to A.1.44. (effective from 1 April 2025).
Early years funding is modelled on school funding i.e. 30 hours per week term time - 38 weeks a year. And the expansion for families receiving working parent entitlement should offer the same number of hours from as early as 9 months until starting school reception. In line with this you should be able to take hours with no compulsory extra fees, as in school, options to take in a packed lunch and choose whether to pay for extra hours, after school or holiday activities.
In early years different types of providers open longer or shorter hours / sessions or days of the week. Some similar, others different to schools’ model. We hope this comparison is helpful.
Key Principles
- Fairness and equality – you have the same right to access a free place whether or not you pay for extra hours, food or consumables.
- Transparency – a clear, itemised charges and fees policy should be easily accessible. Alongside this a detailed itemised invoice, which shows which hours are free, and any extra charges you may have opted in to.
- Choice – any extras (meals, consumables etc) can be charged for, but this charge must be voluntary. If you choose not to pay a voluntary charge, your free / funded nursery offer should be no different to a fee-payers.
- Accountability – since this funding comes from government, you have a right to understand how the policy is implemented for your child. For instance, that voluntary charges really are voluntary, and how you can take just the free hours if you wish.
What you CAN and CANNOT be charged for
Hours must be free – what you CANNOT be charged for:
- Top up fees (i.e. difference between council and nursery rate)
- Charges for items necessary for childcare: arts/crafts, books, toys etc
- Running costs (rent, wages, cleaning, bills etc)
- Non-refundable registration fees required for taking up free entitlements
- Non-refundable deposits (or deposits for those on low incomes). The provider may retain the deposit if you do not take up your place.
- Non-refundable retainer fees
- Charges required to take free hours or charging patterns that prevent normal use of hours e.g. If I only need childcare Monday and Tuesday, can I use my free hours?
- Any charges not covered by Section 2 (below)
- Items or activities that support a child’s access to the EYFS curriculum.
What you CAN be charged for, when and how:
- Extra hours – you may choose to buy extra hours additional to the funded hours. The provider sets the hourly rate for these. But you can also choose to use just 15 or 30 hours, and this must be both possible and clear.
- Food – meals can be charged for, but if you cannot or do not want to pay you have to be given another option (i.e. bringing your own or charges waived). It cannot be that you must take your child out of the setting over lunch break.
- Consumables (non-food) – as with food, this needs to be a voluntary charge, with options instead to bring your own nappies, wipes, suncream, wellies or waterproofs etc
- Extra activities not necessary for EYFS – e.g. language or music lesson. If you choose not to have these, your child must still be able to attend that day and continue to receive alternative provision that complies with the EYFS.
- Written agreements between the parent & provider should include a section to show whether you have opted in or out of these charges. Providers can, if they wish to do so, ask you to decide on a term-by-term basis of whether you want to opt in or out of any charges for food, consumables or additional services.