Government-funded childcare is now the largest single income stream for most early years settings in England, and the rules around it have tightened. This early years funding course gives nursery managers and owners a clear grounding in the funded entitlements, what you can and cannot charge alongside funded hours, how to invoice and talk to parents about money, and the levers that keep a setting financially sustainable.
It is practical throughout. Each lesson ends with a task to try in your own setting, from testing your fee sheet against the charging rules to working out your break-even occupancy.
Why funding knowledge matters
Charging mistakes are rarely cynical. Most are legacy habits that predate the current rules: a “facility fee” per funded hour, a compulsory lunch charge with no packed-lunch option, a deposit to hold a funded place. Getting it wrong risks repayment demands, removal from the funded scheme and serious damage to parent trust. At the same time, money that exists for the children who need it most, such as Early Years Pupil Premium and the Disability Access Fund, often goes unclaimed because nobody identified the eligible family.
Funding reaches you through your local authority, and its provider agreement sets your rates and your obligations, including the charging rules. Department for Education guidance was tightened in 2025, with a sharper emphasis on itemised invoicing and transparency, and local authorities now routinely ask to see sample invoices at audit. Your own authority’s current agreement is the binding reference, so the course shows you what to check in it each year.
What’s in the course
- The funded entitlements explainedThe three strands, HMRC codes and deadlines, stretched offers, and how money flows through your local authority.
- The charging rulesFree at the point of delivery, no top-up fees, and the three tests every optional charge must pass.
- Invoices, transparency and talking to parents about moneyWhat a clear invoice for a funded child shows, fee sheets, admissions wording, disputes and hardship.
- EYPP, DAF and the funding settings missEarly Years Pupil Premium, the Disability Access Fund, SEN inclusion funds and how to identify eligible families.
- Occupancy, costs and your sustainability leversOccupancy by session, the funded-only and blended mix, staffing costs and the lawful levers you can pull.
- Budgets, scenarios and difficult decisionsBreak-even occupancy, a monthly review, scenario planning and changing your offer without losing parents’ trust.
- Assessment10 questions. Pass mark 80%. Resit as many times as you need.
What you’ll learn
- The three strands: universal 15 hours for three- and four-year-olds, 15 hours for eligible disadvantaged two-year-olds, and 30 hours for eligible working parents of children from nine months to school age
- How HMRC codes, term deadlines and reconfirmation work, and why a lapsed code is a common, avoidable reason families lose funded hours
- Why you cannot charge top-up fees, or make any charge, registration fee or deposit a condition of a funded place
- The three tests for meals, consumables, trips and extras: voluntary, itemised, and with a real alternative offered
- How to lay out an invoice for a funded child, with funded hours shown at zero and every extra on its own line
- How to ask every family the same written questions so EYPP and DAF eligibility is not missed
- How to track occupancy by day and session, and match your rota to the register without cutting ratios
- How to calculate break-even occupancy and rehearse three scenarios before they happen
Who this course is for
- Nursery managers and owners responsible for fees, invoicing and budgets
- Committee members of committee-run settings
- Deputy managers and administrators who handle admissions, codes and parent billing
- Anyone reviewing a fee structure against the charging rules
How it works
- OnlineStudy on any device and pick up where you left off.
- 6 short lessonsAbout 45 minutes in total.
- 10-question assessmentPass mark 80%. Resit as many times as you need.
- CertificateIssued when you pass. NFAQ accredited.
Training your team
Every member of staff who talks to families about places should explain the funded offer the same way, so it helps if your admissions and office team take the course alongside the manager. Choose the number of learners at checkout, with group rates from 3 learners, or get it as part of the Training Portal for £5 per learner per month. It pairs well with Building Partnerships with Parents and GDPR for Managers.
Frequently asked questions
Can we charge for meals and nappies for funded children?
Yes, as long as the charge is voluntary, itemised and a workable alternative is offered, such as a packed lunch or parents supplying their own nappies. A family must be able to take up their funded hours without paying it.
Can we take a registration fee or deposit from funded families?
Not as a condition of a funded place. Parents cannot be asked to pay to secure or access their child’s funded entitlement. Any deposit for additional private hours must follow your local authority’s provider agreement.
Does the course cover the rates our local authority pays?
No. Each local authority pays under its own published rates and its own provider agreement, and neighbouring authorities can differ noticeably. The course shows you what to look for in your own authority’s agreement.
Is this course for settings in England?
Yes. It covers the funded entitlements in England and the Department for Education guidance that local authority provider agreements are built on.
What happens if I don’t pass the assessment?
You can resit it as many times as you need until you pass. Your certificate is issued as soon as you reach the 80% pass mark.
Will this help at Ofsted?
Ofsted does not approve training providers, and the certificate is evidence that you completed the training. The course does cover explaining to your local authority and to Ofsted how Early Years Pupil Premium was used and what difference it made.
