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

Young Friends Kindergarten

Government funding for early years can feel confusing.
This page explains exactly how it works at Young Friends, in plain English.

If you read nothing else, remember this:

Funding contributes towards the cost of your child’s place.
It does not cover everything that makes Young Friends what it is.


At a glance – a simple overview

  • All children are entitled to some government-funded early education

  • This funding pays for basic early years education only

  • Families then choose how much of the full Young Friends experience they want their child to access

At Young Friends, funding is never hidden, and choices are always clear.


Universal Funding (All Families)

All 3- and 4-year-olds in England are entitled to 15 hours of funded early education per week, starting from the term after their third birthday.

This is known as Universal EYFE and applies to all families, regardless of income.

How this works at Young Friends

We deliver funding year-round by stretching it across 51 weeks.

This means:

  • 15 funded hours during term time
    becomes

  • 11.4 funded hours per week, all year

This approach provides consistency for children and families.


Extended Funding (Working Families)

Some working families are entitled to an additional 15 funded hours.

This is often referred to as “30 hours funding”.

How this works at Young Friends

  • 30 funded hours during term time
    becomes

  • 22.8 funded hours per week, all year

Who is eligible?

To qualify, each parent (or the 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

Families must apply through HMRC and receive an eligibility code, which must be renewed each term.


Funding for Younger Children

Some families are entitled to funded hours before age three.

  • Some working families can access 15 funded hours from 9 months (from September 2024)

  • From September 2025, eligible working families can access 30 funded hours from 9 months

  • Some 2-year-olds qualify through local authority funding, usually linked to income or specific circumstances

Eligibility is confirmed through HMRC or the local authority.

We’re always happy to help families understand what they may be entitled to.


What Government Funding Covers

(and what it does not)

This is the most important section.

Government funding covers:

  • The basic cost of early years education

  • Minimum staffing requirements

  • The statutory EYFS curriculum

  • Required assessments and checks

Government funding does not cover:

  • Meals or snacks

  • Nappies or care products

  • Trips or outings

  • Enrichment experiences

  • Specialist activities

  • Sustainability-led resources

  • Additional consumables or materials

This is why families are asked to choose how they want their child’s experience to look beyond the funded entitlement.


Your Choices at Young Friends

All families receiving funding choose one of two pathways.

1. The Full Young Friends Experience

(Most families choose this)

Families opt into our Enhanced Provision, which reflects how Young Friends is intentionally designed to be experienced.

This includes:

  • All food, care products and consumables

  • Enrichment experiences and trips

  • Sustainability-led practice and materials

  • The full Young Friends daily rhythm

This option allows children to experience Young Friends as a whole, without parents needing to provide additional items or exclusions.


2. Funded-Only Care

Families may choose to access funded hours only, without meals, consumables or enrichment.

This option:

  • Runs within specific funded-only time blocks

  • Requires families to provide food and care items

  • Does not include enrichment experiences or trips

  • Is available in limited numbers

This pathway exists to ensure access to funded education, but it does not represent the full Young Friends experience.


An important reassurance

All children attending Young Friends receive the same high standard of care, supervision and respect, regardless of funding route.

This is a core value and a statutory requirement.


Wraparound Care

Funded hours can be combined with wraparound care in the morning and late afternoon.

Wraparound hours:

  • Are optional

  • Are charged at our standard hourly rate

  • Include meals and snacks during those times

This allows families to build a pattern that works for their working day.


Stand-Alone Funded Places

We offer a limited number of stand-alone funded-only places.

These places:

  • Are delivered in fixed morning or afternoon sessions

  • Are allocated based on availability

  • Are discussed directly with management

Children identified as needing additional developmental, social or emotional support are prioritised for these places where appropriate.


Changes to Funding Eligibility

Funding eligibility is checked regularly.

If:

  • An eligibility code expires

  • A family’s circumstances change

A grace period usually applies, after which fees may become payable.

We will always communicate clearly and in advance if changes affect your invoice.


Additional Funding & Support

Some children are eligible for additional support, including:

  • Early Years Pupil Premium (EYPP)

  • Disability Access Fund (DAF)

  • SEND or language support services

These funds are used to enhance provision and support children’s needs within the setting.


If You’re Unsure

Government funding is complicated — you are not expected to understand it instantly.

If you are unsure:

  • What you’re entitled to

  • Which option is right for your family

  • How funding will affect your fees

Please speak to our team.

We are always happy to explain it before you book a viewing.