Early years entitlement

Early years entitlement (EYE)

Whether you offer the early years entitlement to parents as part of your business model is totally up to you. 30 hours funded childcare is new to providers from September 2017. We know this is likely to be a popular option with parents and you need to think about how you respond as a business.

When you deliver the early years entitlement, you will be paid directly by your local authority at the rate they have set. The rates vary depending on where you are in the country and are based on the Early Years National Funding Formula (EYNFF). You can read more about this, including PACEY's response here. 

No matter where they are, all local authorities have a duty to ensure that they deliver all funded hours according to the statutory guidance published by the government. The government has also produced a model agreement between local authorities and providers to standardise agreements and ensure consistency across different authorities, and has provided operational guidance which sets out what local authorities and providers should do to fulfil their duties

About EYE funding

The government provides varying levels of funding to help parents and carers of children aged 2, 3 and 4 with childcare costs. 

2-year-olds 

The 2-year-old offer provides funding for 570 hours per year of early years education to some of the most disadvantaged 2-year-olds. This means that when a child reaches age 2, they may be eligible for 15 hours of funded early education for 38 weeks of the year (term time), if parents already receive some level of government support. 

Families with a 2-year-old who meet the following criteria are eligible for the free places.

If families claim any one of the following:

  • Income Support
  • Income-based Jobseekers Allowance
  • Income-related Employment and Support Allowance
  • Support under Part VI of the Immigration and Asylum Act 1999
  • The guaranteed element of State Pension Credit
  • Child Tax Credits or Working Tax Creditsand have an annual gross household income of no more than £16,190
  • Working Tax credit Run-on – paid for 4 weeks after the claimant stopsqualifying for Working Tax Credit.

A child is also eligible if they:

  • are looked after by the local authority
  • have a current statement of special educational needs (SEN) or an education, health and care plan (EHCP)
  • receive a Disability Living Allowance
  • have left care through special guardianship or an adoption or child arrangements order (formerly residence and contact orders).

Read more about the 2-year-old offer

3- and 4-year-olds

All 3- and 4-year-olds in England are entitled to up to 570 hours of free early education per year. This is often taken as 15 hours per week over 38 weeks of the year. The rate providers are paid to deliver these places is set by local authorities.

Some 3- and 4-year-olds

If a child has working parents they may be entitled to 30 hours of free childcare a week for 38 weeks of the year. This is equivalent to term time, but may be stretched over 50 weeks. Each parent, or the sole parent in a single parent family of a 3- or 4-year old, has to at least earn the equivalent of 16 hours on the national minimum wage per week, but no more than £100,000 per year, to qualify. Parents can also split their funded hours allowance across more than one provider.

Read how some childminders are responding to offering the 30 hours

        

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