The Department for Education have issued statutory guidance around invoicing for children using Local Authority funding. These rules apply to all funded placements and are not specific to each LA.
Accurate reflection of care and costs
All invoices for funded placements must clearly show the funded hours used within the time period covered (which will usually be monthly). If there are any charges to guardians, either for private care or for any fees, they must be shown in the same invoice.
All funded care provided must be included, with specific times and dates.
This means that invoices cannot be set up as pro-rata (a set amount each month).
Invoices cannot be split, e.g. to separate care covered by funding from privately-paid hours, or to put consumable fees in a separate invoice from hours of care.
Allocation of funded hours
Invoices must show the correct allocation of funded hours provided.
Funding cannot be provided for more than 10 hours per day.
Funding can only be provided between the hours of 6am - 8pm.
Unused hours from one term cannot be carried over to the next term.
Consumable fees
Invoices must be itemised to show all consumable fees for the period. When you set your fees in your Business Settings, this will be reflected in your invoices automatically.
Consumable fees must be specific and clear. Unspecified fees and top-up fees are not allowed.
Consumable fees must be linked to specific sessions of funded care (i.e. hours or days).
Fees for activities and non-food consumables may be applied weekly or monthly instead, if desired. You must have a fees policy in place which clearly sets out the charges and shows how they amount to this monthly fee.
There's more detailed guidance around consumable fees here.
Charges for hours not covered by funding
Any hours of care which are not covered by funding will be charged to the guardian.
Private hours will be charged at your standard hourly rate.
Private charges cannot be applied to hours covered by funding.
Your daily rate cannot be applied to any days where a child has both funded and non-funded care at your setting, as the period covered by this rate would include the funded hours.
Taking up privately-paid hours cannot be a condition of accessing a free place.