Funding Rates

Funding Rates

 

Funding rates that Newcastle City Council will pay to providers for the financial year 1 April 2026 to 31 March 2027

How much a provider receives for individual children can be higher than the hourly rate funding if they are eligible for Early Years Pupil Premium (EYPP) and/ or deprivation payment. The minimum rate is shown and a maximum for children who get EYPP and deprivation as well. 

Child age cohort funding stream  Hourly rate April 2026 Deprivation allocation Explanation
Three-and-four-year-olds

£5.58 (min.)

£7.71 (max. if child got EYPP and deprivation funding)

£715,950 total fund

£556.29 / eligible child 

97.5p / hour (award divided by 570 hours)
  • Hourly rate for three-and-four-year-olds paid to providers. We increased this by more than the DfE funded us
  • Deprivation is an annual payment to providers based on families in disadvantaged postcodes
Early Learning for two-year-olds (15 hours)

£8.52 (min.)

£10.83 (max. + EYPP + Deprivation funding)

£384,050 total fund

£661.01 / eligible child

£1.16 / hour (award divided by 570 hours) 
  • Hourly rate paid out to providers for children on two-year funding
  • Deprivation is an annual payment to providers based on families in disadvantaged postcodes
Working parent two-year-olds (30 hours)

£8.07 (min.)

£10.38 (max. + EYPP + Deprivation funding)

£384,050 total fund

£661.01 / eligible child

£1.16 / hour (award divided by 570 hours) 
  • Hourly rate paid out to providers for children on two-year funding
  • Deprivation is an annual payment to providers based on families in disadvantaged postcodes
Working parent under-twos (30 hours)

£11.25 (min.)

£13.99 (max. + EYPP + Deprivation funding) 

£165,000 total fund

£906.59 / eligible child

£1.59 / hour (award divided by 570 hours)
  • Hourly rate paid out to providers for children on under two funding 
EYPP (Early Years Pupil Premium) 

£1.15 / hr - paid for first 15 hours

£655.50 annually

  
  • EYPP Hourly Rate paid for families on all three age cohorts who are on low incomes, LAC or in receipt of DLA
Child age cohort funding stream  Annual payment  Explanation
Disability Access Fund (DAF) £975
  • DAF is an annual payment to providers, payable for any funded children in Spring term who are in receipt of DLA. This now covers all age cohorts of children (under two, twos as well as three and fours).
SEN Inclusion Fund Varies based on child’s need and assessment
  • Children with special education needs who need a higher ratio of staff for some or all their funded hours, or specialist equipment or training. Child is assessed and awarded funding based on need.

 

Information from https://childrenandfamiliesnewcastle.org.uk/
Printed on May 14th 2026
Page last updated
Print this page