EYFE Funding Explained

The government provides varying levels of funding to help parents and carers of children aged 9 months and above with childcare costs. At Young Friends, we fully support the government’s funded childcare initiatives. Government funding only covers 38 weeks of the year. Because we are not a term time only setting, using the council’s calculations we are able to offer the 15 and 30 hours on a ‘stretched basis’ over the year. This equates to 11.4 and 22.8 hours per week.

 

EYFE Funding Explained

  1. Universal EYFE Entitlement Overview

 

All 3- and 4-year-olds in England are entitled to 15 hours of government-funded early education and care per week (570 hours per year), starting from the term after their third birthday. This is referred to as the “universal” EYFE entitlement and is available to all families regardless of income.

At Young Friends, we deliver this funding as part of our year-round offer, stretching it over 51 weeks. This equates to 11.4 hours per week.

 

  1. Extended Entitlement (30 Hours) for Working Parents

 

Eligible working families may receive an additional 15 hours of funding (total of 30 hours per week during term time, or 22.8 hours per week if stretched across 51 weeks at Young Friends).

To qualify, each parent (or sole parent in a single-parent household) must:

  • Earn at least the equivalent of 16 hours per week at minimum wage
  • Earn less than £100,000 per year

Parents must apply through HMRC and provide a valid eligibility code each term.

 

  1. Recent and Upcoming Changes (September 2024 & 2025)

 

From September 2024: Some working families became eligible for 15 funded hours (11.4 hours stretched) from the term after their child turns 9 months.

From September 2025: Eligible working families will be entitled to 30 funded hours (22.8 hours stretched) for children from 9 months old.

 

  1. 2-Year-Old Funding

 

Some 2-year-olds from low-income families or those receiving certain benefits are eligible for 15 hours funded care. Eligibility must be confirmed via the local authority.

 

  1. What EYFE Covers (and What It Doesn’t)

 

Government funding covers only the basic cost of early education:

  • Minimum staffing ratios and qualifications
  • Core EYFS curriculum
  • Statutory observations and assessments (e.g. 2-year progress check)

It does not cover meals, snacks, outings, nappies, enrichment activities, specialist staff, enhanced staff ratios, or the additional experiences that define our setting.

 

  1. Two Clear Pathways at Young Friends

 

Enhanced Provision (Opt-In)

Families who opt in pay a monthly Consumables & Enrichment Fee to access the full Young Friends experience, including:

  • Organic meals and snacks
  • Sustainable care (nappies, wipes, flannels, suncream, etc.)
  • Daily enrichment: cooking, forest school, yoga, mindfulness, etc.
  • Kitchen garden experiences and seed-to-plate learning
  • Trips and nature-based projects
  • Animal care and community involvement
  • High staff-to-child ratios (1:6 for over-3s)
  • Full progress reporting, parent evenings
  • Additional or extended settling-in sessions and family social events

 

Basic Provision (Opt-Out)

Families who opt out of the Consumables & Enrichment Package access only the government-funded care.

 

 They will:

  • Attend fixed funded-only hours (typically 12:00–4:30pm). The number of sessions depends on your child’s entitlement:
    • 11.4 hours/week (15-hour ((universal)) funding stretched over 51 weeks): 4.5 hours per day, 5 days per fortnight can be taken from 12pm to 4.30pm. These are subject to availability, please check with us via email or phone.
    • 22.8 hours/week (30-hour ((extended)) funding stretched): 12:00–4:30pm, Monday to Friday. For parents wanting just the EYFE then a stretched offer of 4.5 hours per day, 5 days a week.
  • Pay the standard hourly rate (£10.30/hour) for any additional wraparound hours outside the funded block
  • Provide all food and drink daily (to match our menu exactly for allergy and nutritional consistency), labelled with full ingredients and time of preparation
  • Supply their own washable nappies, reusable wipes, creams, flannels, and two wet bags
  • Not access enrichment experiences, specialist sessions, trips, or consumables provided as part of the enhanced package
  • Receive verbal feedback at drop-off and pick-up, and any required statutory assessments (e.g. 2-year progress check)

 

Wraparound care for opt-out families is available based on capacity and staffing levels. We recommend contacting us to check availability in advance.

 

  1. Stand-Alone Funded Places

We offer a limited number of stand-alone funded-only places (11.4 hrs/week), delivered in the same 12:00–4:30pm window. These are available for eligible children receiving support (e.g. E-code funding, DAF, LAC) and are not combinable with paid sessions. Days are allocated based on availability, and the ‘minimum two-day’ rule may be waived in these cases. These places are intended to ensure access for families most in need and cannot be used flexibly across different session types.

 

  1. Attendance, Eligibility and Changes
  • You must notify us of changes to sessions with at least one month’s notice.
  • Attendance is closely monitored. Absences over 3 weeks must be reported to the Local Authority.
  • If funding eligibility lapses, a grace period applies, after which charges may be incurred.

 

  1. Additional Support & Premiums
  • EYPP (Early Years Pupil Premium): Additional funding to enhance learning for eligible children.
  • DAF (Disability Access Fund): Annual payment to support children with SEND receiving DLA.
  • EMAS/Language Support: We work with the Ethnic Minority Achievement Service for EAL learners.

 

  1. How the Extras Package Works

If you opt into the Consumables & Enrichment Package, the fee is calculated based on how many funded hours your child receives. This ensures fairness across all families and reflects the level of access your child has to our full provision.

 

Monthly Fees (stretched over 51 weeks):

  • 11.4 hours/week (15-hour funding): £244.63 per month
  • 22.8 hours/week (30-hour funding): £489.25 per month

These fees are fixed and include all meals, care products, enrichment, activities, trips, specialist staff, and communication. They are calculated pro rata if taking less than your full entitlement.

 

  1. How to Work Out Your Monthly Invoice

Families using wraparound hours (beyond funded hours) will receive an invoice made up of:

  1. Extras Package Fee (see above)
  2. Wraparound Hours Fee (Wraparound hours per week × hourly rate × 50 weeks ÷ 12 months)

 

Example:

  • A child attends 8am–6pm Monday to Friday
  • Funded hours: 12:00–4:30pm (4.5 hrs/day)
  • Wraparound: 5.5 hrs/day (morning + late afternoon)
  • 5.5 (wrap around hours) × 5 days = 27.5 hrs/week
  • 27.5 hrs × £10.30 = £283.25/week
  • £283.25 × 50 ÷ 12 = £1,180.21/month (wraparound only)

 

Add this wrap around fee to your monthly extras package fee (detailed above) to calculate your total invoice.

 

  1. Important Reminders
  • Funded hours remain free, but families must choose whether to opt in or out of our full offering.
  • Families will be asked to reconfirm or adjust their choice each term.

 

For full eligibility guidance, visit Childcare Choices or speak to our team.