🤹♀️ What are Local Authority Funded Placements?
Early Years funding is a government initiative which aims to support parents and guardians to access quality, affordable childcare.
Parents can access up to 15-30 hours of funded childcare per week, for 38 weeks per year.
The eligibility criteria is based on the age of the child, and the family’s household income and other criteria.
The funding for these hours of care is paid by the Local Authority where the provider is based.
👨👩👧👦 Can all families use funded placements?
There are 5 funding types, for children in different age groups and household income. The funding type dictates the number of hours children can use each week.
15 hours for 9-23 month olds (working parents)
15 hours for 2 year olds (additional family support)
15 hours for 2 year olds (working parents)
15 hours for 3-4 year olds (universal)
15 hours for 3-4 year olds (working parents - can use 30 hours total in conjunction with the Universal hours for 3-4 year olds).
🤓 How do I check which funding type a child can use?
The best resource to check is the interactive tool on ChildcareChoices. You or parents can enter the household income bracket and children’s details to see which funding schemes may be applicable.
Parents may be eligible for the Working Parent funding if they earn over minimum wage, and under £100k per year, per parent. They will need to apply for their funding codes through the gov.uk website. Parents will then need to share their funding codes and National Insurance number with you so you can verify their eligibility.
If parents are not eligible for the Working Parent funding, they may be able to use the 15hrs for 2 year olds on additional family support, if they meet the eligibility criteria here.
All 3-4 year olds can use 15 hours Universal funding, from the term after they turn 3, without any means-based criteria (i.e. regardless of household income).
📓 Can I offer these placements as soon as I am registered with tiney?
When you register with tiney, you are not automatically eligible to offer funded placements - you or tiney will need to complete a separate registration with the Local Authority to offer them.
Some Local Authorities work directly with tiney, in which case we will do the registration work for you to be able to offer these placements. Others work directly with providers, so you'll need to do the registration if you have any families wanting this - we can provide support through this process. The Local Authority Funding section of your Business Settings will provide you with information about your area, and instructions on how to register to offer funding.
This registration process varies over all Local Authorities, and can take a few weeks or up to a few months to complete. Do NOT confirm any placements with parents until this is confirmed.
🏦 How much and when will I be paid?
The Local Authorities set the hourly rate that they'll pay you - this will also be displayed in the Local Authority Funding section of your Business Settings
The Local Authorities also set the payment schedule - most only pay once or twice a term, but others pay on a monthly basis. The payments are calculated based on a ‘Headcount’ submission that must be completed on the Local Authority’s portal. Tiney can provide assistance on completing this.
💸 Are there any costs to parents?
You can charge a subsistence fee to cover the cost of consumables like food and nappies. See our article on subsistence fees here for more information.
If the family wants to use more hours than the funding covers, the family must pay for this themselves. For example if a schedule is for 20 hours per week for a child eligible for 15 hours funding per week, the parents will need to pay for the 5 additional private hours. You can charge your own rates for any private hours, and this will be included in your tiney contract with the parent.s.
📃 How do I onboard a child using funding?
You will need to request a tiney contract as you do for all placements, which will specify that the child is using funding. In addition to the standard contract information with the guardian and child’s details, a Funded Contract will include:
The funding type the child is using, and eligibility obligations for the guardian.
The number of funded hours the child will use per week, and the number of private hours that will be charged to the guardian in addition to the funded hours.
Your rate for any private hours used, in school holidays or in addition to the weekly funded hours.
Your subsistence fees to cover the cost of any consumables.
Whether the funding will be used on a term time only basis (standard), or stretched over the full year, to use fewer hours per week.
📝 What do I need from parents?
In addition to the funded contract, you also need:
Sight of the child's birth certificate to confirm their date of birth.
A copy of the parents eligibility code, and their National Insurance number.
A fully completed parent declaration form (this will be specific to your local authority, please request a copy from tiney or your LA if you do not have one on file).
📨 What do I need to tell the Local Authority?
Local Authorities will issue ‘Headcount tasks’ on their portal. In this, you enter the child’s details, eligibility information, and hours of funding they use with you. These tasks need to be completed for the LA to release payment to you, per their payment schedule.
If you deal directly with your LA you will need to complete the headcount tasks yourself - but Tiney can assist with this if you would like.
If tiney deal with the LA on your behalf, you will need to ensure all information is shared accurately with tiney, and we will complete the headcount task for you.
Important Considerations
💼 It is important that you decide whether offering funded placements is right for your business. Rates will vary from your own hourly rates and payment schedules can vary - you are not always paid on a monthly basis, and not always paid in advance of care taking place.
With the expansion of funding through 2024, more parents than ever before are looking to take up funded placements, so offering these spaces can be a great marketing opportunity for your business. For the younger children, the hourly rates are often equal to or higher than the market average rates, so you may earn more from these placements.
❗You will need to make sure that you are clear on the eligibility criteria for funded placements once your application has been agreed by the Local Authority.
Eligibility details must be verified on a termly basis, and payments will not be made for any parents whose eligibility is not confirmed. Tiney can assist with checking any eligibility codes, and sending reminders to parents to update these details.
📆 Starting funded placements mid term may cause delays in payment. It is best practice to begin funded placements at the start of a term for the full term of care, and plan a term in advance. Funding is provided on a term time only basis unless you choose to 'stretch' it over the full year which will mean the number of funded hours you offer per week will decrease.
✋ Most importantly it is important that you manage the expectations of any parents wanting to start a funded place with you at very short notice and explain that it can take time to set up and confirm eligibility. If a parent wants to start care before funding is confirmed then they will need to pay you in advance for this care and can swap to funded payment at a later stage.
👐 Funding can be complex for parents and providers and we have found there are still many misconceptions. It is important that you feel confident when discussing funding with parents so please make sure you ask the team at tiney for any clarification you need.