đ¤šââď¸ 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. Eligible children can access a certain number of funded hours per week, and eligibility is based on criteria such as the age of the child and household income.
The funded hours are paid for by the Local Authority where the childcare provider is based, and registration to provide funded childcare is separate to your registration with tiney.
đ¨âđŠâđ§âđŚ Who is eligible for this funding?
There are several different types of funding available, which are based on different criteria. Families must apply for most of these types, and the type dictates how many hours children can use each week. Thereâs more info available at gov.uk and via the Best Start In Life Childcare Checker.
The age-based criteria depends on the age of the child when the term begins, so if they have a birthday mid-term, they will move up to the next funding bracket (if applicable) as of the next term. Thereâs more detail on the key dates here.
Hereâs an overview of the funding types:
30 hours for 9-23-month-olds (working parents)
15 hours for 2-year-olds (additional family support)
30 hours for 2-year-olds (working parents)
15 hours for 3&4-year-olds (universal: all children in this age bracket can access this funding)
30 hours for 3&4-year-olds (working parents)
If eligible, two funding types for the same age bracket can be combined, for a maximum of 30 funded hours per week.
Eligibility details must be verified on a termly basis, and guardians must renew their eligibility every three months. We can assist with checking eligibility codes, and sending reminders to parents to update these details. Please see our article on funding types & eligibility for a more in-depth look at this topic.
Please note that a childminder cannot claim funding for children they are related to, either by blood or marriage.
đ Can I offer funded placements as soon as I register with tiney?
Registration with tiney doesnât mean that youâre automatically registered to offer funded placements: this will be a separate process, and you will need to inform tiney that you would like to register.
Some Local Authorities work directly with tiney, in which case we will do the registration work for you once you let us know youâd like to offer these placements.
Other LAs work directly with providers, so you'll need to do the registration yourself, though 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 significantly between Local Authorities, and can take a few weeks or up to a few months to complete. Do NOT confirm any funded placements with families until your registration is confirmed.
đ¤ Do I have to offer funded placements?
No, you donât have to offer funded placements: itâs entirely your choice. If you choose to offer funded placements, you are not obligated to do this forever (though if you choose not to continue, youâll need to make that change between terms).
Whether or not to offer funded placements at your setting is a question worth taking some time to consider. The rate youâll get paid is set by the Local Authority (see below), so this wonât be the same as your usual rate - it may be higher or lower. Each Local Authority also sets their own schedule for payment over the term, though as of October 2026 all LAs will offer monthly payments as an option.
Another point to consider is that with the governmentâs expansion of funding criteria since 2024, more and more children are eligible, so if you choose not to offer these places, you may find that you have a smaller pool of potential clients.
đ How do I claim the funding through my Local Authority?
Local Authorities will issue Headcount Tasks on their portal each term. In this, you enter the childâs 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. Please see our article on Headcounts for more information.
If tiney deal with the LA on your behalf, we will complete the tasks for you, based on the information we have. Itâs vital that you keep your funded contracts and care schedules up to date, and inform us ASAP of any changes.
If you deal directly with your LA, you will need to complete the headcount tasks yourself, but tiney can provide guidance if requested.
If youâre in a Local Authority which prefers to work with providers directly, and youâd like tiney to submit your claims on your behalf, please reach out to us: the decision will ultimately be up to your LA, but weâll be able to guide you through making the request and the next steps.
You must also complete a termly Census, via an online form. The Census is used to inform LAs of the number of staff working in childcare settings, their qualifications, and the number of children in their care by age groups. This is a requirement, and if this is not completed, it may result in delays to your funding payments.
đ What do I need in order to claim funding for a child?
Here are the things you'll need:
Proof of eligibility: this will usually be a code and the parent's National Insurance number. If tiney handle your claims, you'll need to submit those to us when you create the funded contract.
Proof of age: you need to see a document (usually the birth certificate) confirming the child's date of birth, to verify the correct age bracket. You do not need to send this to tiney.
A completed Parent Declaration Form: this is to indicate the number of funded hours being used with a childcare provider each term, and how those hours will be scheduled, as well as recording the eligibility information. You'll find these forms in your LA's resources.
A new Parent Declaration Form must be completed each term for each child, and submitted either to tiney (if we handle your claims) or to your Local Authority directly. These forms are necessary for compliance with funding guidelines.
Many LAs require these to be submitted alongside Headcounts, so please ensure that yours are completed in plenty of time, to avoid any delays to payment.
đŚ How much and when will I be paid?
This varies between Local Authorities. Each LA sets the hourly rate that they pay providers, and these rates often differ between the funding types, with typically higher rates for younger age brackets. The rates may also change between terms. Youâll see the latest rates for your LA in the Local Authority Funding section of your Business Settings.
The Local Authorities also set the payment schedule - most pay once or twice a term, but others pay on a monthly basis (and all LAs will offer monthly payments as an option as of October 2026). The payments are calculated based on a âHeadcountâ submission that must be completed on the Local Authorityâs portal.
If you're in an LA which works directly with tiney, your payments will be made to us, and will come through to your wallet as normal. If you're not in one of these LAs, you can choose to have your payments sent to tiney if you wish. This article will give you guidance on that process.
tiney's service charge applies to certain payments made by Local Authorities. Please see here for more information on how that works.
đ¸ Are there any costs to families?
You can charge a fee to cover the cost of consumables like food and nappies. See our article on consumable fees here for more information.
Families may wish to have extra hours of care on top of those covered by funding. You can charge your own rates for any private hours, and these will be included in the tiney contract.
đ How do I set up funded contracts and invoicing?
Youâll set up the contract via the app as normal, and you will need to select the Funded type. If a child is using two types of funding, please let us know via the Additional Requirements section in the contract builder, as we currently donât have the option to add two types to the contract automatically.
Weâll handle the invoicing. In accordance with guidance from the Department of Education, all funded hours need to be shown in the invoice, so even if thereâs nothing for the family to pay, theyâll still get a monthly summary showing the hours of funded care used each month.
Our article on invoicing for funded placements contains a lot of useful information on these rules.
đ Can funding be used in school holidays?
Funding may be used during term-time only, or it may be stretched to cover school holidays. The number of hours the child is eligible for each term remains the same either way, but stretching means the funding is used for fewer hours per week over a longer period. Please see this article for more guidance on how this looks in practice.
The decision on whether to stretch funding is up to you and the family. Childminders do not have to offer a stretched funding option, regardless of whether or not your setting is open during the school holidays.