Local Authority funding can be used either during term-time only (TTO), which will encompass 38 weeks or the year, or it may be stretched to cover school holidays. The number of funded hours which can be claimed per term and per year remains the same either way, and you can decide whether or not you wish to offer a stretched funding option at your setting.
How many hours of funding can children use?
Funded hours are calculated based on 38 weeks per year. Your LA determines the term dates that they will fund - funded term dates can differ from academic dates, so it’s important to refer to the funding calendar for your LA.
The maximum number of hours available annually is 570 for a child eligible to claim 15hrs per week, or 1140 for a child eligible for 30hrs per week.
Term-time only
Local Authorities will fund a certain number of weeks within each term, totalling 38 weeks per year. The split can vary between LAs, though a common allocation is 14 weeks in Autumn, 11 weeks in Spring, and 13 weeks in Summer.
When you use funding on a term-time only basis, you will claim funding for the number of weeks that the LA has allocated to that term, and use the funding during school term weeks.
This may not cover all term weeks, as most schools will have 39 term-time weeks per year, so if a child is attending your setting for 39 weeks per year, the family will need to pay for one week of care. This week is usually set to the end of the Autumn term.
Any care during school holidays will also need to be paid for privately.
Stretched funding
Stretched funding allows the same number of funded hours to be used over a longer period, by using fewer hours per week. This can be useful for families who would like year-round childcare, as it will mean that their monthly invoice totals will fluctuate less than if they need to pay for all care outside term-time. As the provider, this may also be helpful in forecasting your earnings.
You do not have to offer stretched funding as an option, even if your setting is open year-round. If you do choose to offer it at your setting, families wanting care over the full year can then decide whether they'd prefer stretched or term-time only funding.
If a funded placement has begun, but you or the family want to change from term-time only to stretched funding (or vice versa), this must be done between terms.
Other points to consider when deciding whether to offer stretched funding
Funding may be split between settings: a child's funding can be claimed by more than one setting in a term, and if this is the case, it's vital that you know how many hours the other setting is claiming, to make sure the total is within the maximum for the term. This is particularly important if they are receiving a stretched offer with you and term-time only funding at the second setting.
Unplanned closures e.g. sick leave: You must offer the undelivered hours at another time within the term. You will need to keep accurate records of attendance to keep track of hours used and still available.
Mid-term starters and leavers: Again, accurate record-keeping is your best friend, but a stretched offer can be more difficult to calculate and keep track of.
If you are new to funding, or generally find funding admin time-consuming or confusing, we strongly recommend you start with a TTO offer to avoid the possible complications that can arise from a stretched offer.
Once you decide upon your offer, you will need to adapt your policies to reflect the options, and you will require agreement from parents before you can implement any changes that may affect your current offer.
How to calculate your stretched offer
Firstly, you'll need to check on your LA's guidance, to find out any specific rules around stretching. Next, you'll need to decide how many weeks of the year your setting will be open and offering funded care. Most stretched offers tend to be between 47 and 50 weeks.
Example 1: A childminder takes 5 weeks of leave per year, and is open for business the remaining 47 weeks.
If a child is eligible for 30hrs of funding per week, the maximum they can access per year is 1140hrs (based on 38 weeks annually).
1140hrs spread over 47 weeks gives 24.25 funded hours per week, equivalent to 24 hours and 15 minutes.
Example 2: A childminder takes 2 weeks of leave per year, and is open for business the remaining 50 weeks.
If a child is eligible for 15hrs of funding per week, the maximum they can access per year is 570hrs (based on 38 weeks annually).
570hrs spread over 47 weeks gives 11.4 funded hours per week, equivalent to 11 hours and 24 minutes.
How to apply stretched funding
Your tiney contract for each child's care will need to state whether funding will be provided on a term-time or stretched basis, and you'll find an option for this in our contract builder.
Funded hours can only start being used from the beginning of the term after the funding eligibility code is validated. Any sessions before this start date need to be paid privately.
When processing your funding claim for the term, not every LA supports a stretched claim on their portal, so you may need to make a claim on a term time only basis, and track the hours that are used within each term. This can mean that for some terms, you’re paid for a different number of hours than are actually used, but this will work out over the full year.
If you've got any questions, please get in touch with us or with your LA directly for guidance.