Funded Nursery Hours at MTO Nursery
Policy Purpose
This policy sets out how MTO Nursery delivers the government’s Early Years Funding entitlements. It explains:
- The funded hours available to families
- Eligibility requirements
- How funded hours are delivered at MTO Nursery
- What is included within the funded entitlement
- What is not covered by government funding
- The rationale for any additional charges
- Parents’ rights to access a fully funded place without additional costs
Our aim is to ensure full transparency and to support families in understanding their childcare options.
Funding Entitlements
Parents can find out if they are eligible for working parent funding at Childcare Choices
http://www.childcarechoices.gov.uk
| Child’s Age* | Funded Hours | Who Is Eligible? |
|---|---|---|
| 9 months – 2 years | 30 hours (1140 hours per year) | Working parents* |
| 2 year olds | 30 hours (1140 hours per year) | Working parents* |
| 3 & 4 year olds | 15 hours universal funding (570 hours per year) | Everyone |
| 3 & 4 year olds | 30 hours (1140 hours per year) | Working parents* |
There are conditions to funding as to which working parents qualify, and funding is applied in three terms, with codes needing to be secured before 31st March for the April term, 31st August for the September start, and 31st December for a January start.
Funding is available the term AFTER a child turns 9 months, 2 or 3, with the code having being applied for by the dates above. Codes need to be reconfirmed (subject to circumstances) every 3 months to keep the funding, and it is a parent’s responsibility to do this.
Please note that for the 9 month old funding, the parent needs to start work within 1 month of the child starting nursery to be eligible for funding that term.
Application and Eligibility Codes
Parents are required to apply for their funded hours through Childcare Choices and must give this code to nursery. They must then renew their eligibility code each term. The government’s “grace period” rules will apply if a parent’s circumstances change. It is the parent’s responsibility to apply for and maintain a valid eligibility code. MTO Nursery is not responsible for applying for, monitoring, or renewing eligibility codes on behalf of families.
Stretched Funding at MTO Nursery
MTO Nursery delivers funded hours on a stretched basis across 51 weeks of the year to ensure consistency for the children as well as consistent billing.
– 15 hour funding (570 hours per year) → 11.18 hours per week stretched
– 30 hour funding (1,140 hours per year) → 22.35 hours per week stretched
If children start part way through a year (e.g. a January or April start), we will calculate how many hours/weeks of funding you are eligible for. Any weeks not covered will be charged at the nursery’s standard daily rate.
The funding is available daily as per our session times, 8.00-6.00pm (10 hours) subject to which days we have availability. For 15 hour funding, the additional 1.18 hours is available at 4.50-6.00pm, and for 30 hours funding the 2.35 hours (2 hours 20 minutes) are available at 3.40-6.00pm. If a parent wishes to pay for additional hours above these times to make a full day, this will be shown on your invoice accordingly and charged at our hourly rate.
| Funding | Number of weekly Hours | Sessions |
|---|---|---|
| 15 hour funding | 11.18 | 1 x 10 hour day, 1 x 4.50-6.00pm session (subject to available days) |
| 30 hour funding | 22.35 | 2 x 10 hour days, 1 x 3.40-6.00pm session (subject to available days) |
Transparency Requirements (DfE Guidance 2025)
From April 2025, all early years providers must clearly itemise any charges relating to:
- Food Charges
- Non-food consumables (nappies, wipes & suncream)
- Enhanced provision (trips & extra-curricular activities)
MTO Nursery complies fully with this requirement. All charges are published on our website and available to families at any time. These charges are also clearly shown on our invoices.
At MTO Nursery, we have worked to keep our additional charges as low as possible and are just £8 per funded day.
This includes:
| Additional Charge | 0-3’s | 3-4’s |
|---|---|---|
| Meal charges (Breakfast, morning snack, lunch, afternoon snack, afternoon tea) | £6.50 | £8 |
| Non-food consumables (nappies, wipes & suncream) | £1.50 | £0 |
| Total Daily Charge | £8 | £8 |
Parents will be asked to opt in on a termly basis and agree to the charges for the coming term.
Opting Out of the Consumables Charge
Parents have the right to access their funded hours without additional items or services.
Families who opt out must provide all necessary consumables themselves daily, including:
- Packed meals and snacks (breakfast, morning snack, lunch, afternoon snack, afternoon tea) – food
provided must be fully compliant with our Food from Home Policy - Nappies, wipes, formula – these items must be fully compliant with our Intimate Care Policy
Opting out does not affect a child’s access to funded hours. MTO Nursery remains fully committed to delivering every child’s entitlement in accordance with statutory requirements.
If you have previously opted in, and your circumstances change, you must notify us 4 weeks before the end of term that you wish to opt out for the following term.
Attendance Expectations
To ensure the effective delivery of funded hours and to maintain compliance with local authority requirements, the following attendance expectations apply:
- Children are expected to attend regularly and consistently during their agreed funded sessions.
- Repeated non-attendance may lead to a review of the child’s funded place.
- Parents must inform the nursery of any planned absences, holidays, or changes to their child’s attendance pattern.
- Persistent unexplained absences may be reported to the local authority in line with funding regulations.
Regular and consistent attendance supports children’s learning, development, and wellbeing, and enables MTO Nursery to meet its obligations under the funded entitlement framework.
Scheduling of Funded Hours
Funded hours can only be accessed during the nursery’s standard session times and in line with our established session structure (as outlined above). Parents may select from the available funded session patterns, subject to availability.
Key points:
- Funded hours cannot be “banked,” accumulated, or carried over to another week.
- Funded hours must be used within the term dates set by the local authority.
- Any hours taken in addition to the funded entitlement will be charged at the nursery’s standard hourly rate.
- Each invoice will clearly identify which hours are funded and which are chargeable.
Invoicing and Payment Terms
Monthly Invoices issued by MTO Nursery will provide a clear breakdown of all charges, including:
- Government-funded hours
- Consumables charges (meals and non-food consumables)
- Additional paid hours
Parents are responsible for ensuring that all non-funded charges are paid by the due date stated on the invoice.
Failure to make timely payments may result in:
- Suspension of optional extras
- Withdrawal of additional paid hours
Government funding cannot be used to offset or cover any unpaid fees.
Notice Periods
Standard nursery notices periods apply to all children, including those accessing funded hours. Parents are required to provide written notice if they intend to:
- Reduce their child’s hours
- Change their child’s attendance pattern
- Withdraw their child from the nursery
Failure to provide the required notice may result in charges being applied for the notice period, as government
funding cannot be claimed retrospectively.
Policy Review
This policy will be reviewed annually or sooner if government guidance changes.