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Early Years and Childcare - Nursery Education Funding

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To offer government funded places, providers must sign up to Peterborough's Provider Agreement. 

Please contact for your agreement and for more information.

Once we have received your signed agreement, Hannah Oliviero (Settings Finance Officer) will begin the process to get your payment details set up, and provide instructions and support with claiming.

All funding queries should be directed to

The city council pays childcare providers to deliver the funded early education entitlement (FEEE) to children.

The amount paid for three and four-year-old children is determined by the Early Years National Funding Formula (EYNFF) in line with government regulations. It is designed to improve fairness and transparency in the way that funding is allocated to local authorities and subsequently to providers.

In Peterborough, this is made up of a universal hourly base rate, a deprivation supplement (children living in the 30 percent most deprived areas qualify) and a flexibility supplement (for settings meeting criteria).

Funding rates

Funding hourly rates effective from 1 April 2024 for all provider types are as follows: 

  Hourly base rate 
Under 2's £10.96
Two-year-olds £8.02
Three and four-year-olds £5.41

EYNFF supplements effective from 1 April 2024:

Flexibility supplement -

3 & 4-year-olds only

£0.49 per hour where a setting is operating as detailed below:

  • The provider operates under a single registration for a minimum of 50 weeks per year (not including bank holidays) and is open continuously for more than seven hours per day


  • The provider operates for less than 50 weeks but more than 40 weeks per year and is open for a minimum of ten hours per day.

In addition to meeting the criteria above, children must regularly be attending the provider each week the provider declares itself open and at the very beginning and end of each day. They must also be able to access continually through the day during opening hours, with no closure at lunch. The Provider should also actively promote the stretch entitlement to families accessing the provision. This will be audited during the year by the local authority.

Deprivation supplement -

payable for all entitlements where child meets criteria

£0.25 per hour per child if residence postcode is within 30 percent most deprived areas of the country based as designated by IDACI (Income Deprivation Affecting Children Index)

What is Early Years Pupil Premium?

The government introduced an Early Years Pupil Premium for qualifying children accessing their funded entitlements. The purpose of this funding is to support settings in narrowing the attainment gap between the least and most deprived families in the country.

Funding rate for EYPP

EYPP is paid at a national rate of £0.68 per funded hour, per child, on top of their funding hourly rate. This equates to an additional £387.60 for a child receiving the full 570 hour entitlement. 

There are no conditions from the government about how additional income generated by EYPP is spent. However, it is the expectation that providers should demonstrate commitment to improving the quality of early years provision for their disadvantaged children. Providers will be held to account for the quality of the early years education that they provide to disadvantaged children through Ofsted inspection.

Qualifying criteria

To be eligible for EYPP, the child's parent/carer must be receiving one or more of the following benefits:

  • Income Support
  • Income based Job Seekers Allowance
  • Income related Employment and Support Allowance
  • Support under part 6 of the Immigration and Asylum Act 1999
  • The guarantee element of State Pension Credit
  • Child Tax Credit (provided they are not also entitled to Working Tax Credit and have an annual gross income of no more than £16,190)
  • Working Tax Credit run-on – paid for 4 weeks after the parent/carer no longer qualifies for Working Tax Credit.
  • Universal Credit (provided household income is below £7,400 a year after tax, excluding any benefits)

Or the child:

  • Has been looked after by the local authority by at least one day
  • Has been adopted from care
  • Has left care through special guardianship
  • Is subject to a child arrangement order

Checking a child's eligibility for EYPP

The Parent and Provider Agreement form allows Providers to collect the relevant information and consent from parent/carers that the local authority requires to make checks through the government’s Eligibility Checking Service. 

Providers will be required to complete their EYPP Checker spreadsheet on SharePoint with the following information for EYPP checks to take place:

  • Parent surname
  • Parent forename
  • Parent date of birth
  • Parent National Insurance Number or National Asylum Support Service (NASS) reference
  • Child’s forename
  • Child’s surname.

The city council will check the eligibility of the family by using the Government's Eligibility Checking Service. Eligibility will be checked within 10 working days or sooner where possible (subject to the  checking service being available).

Please note the EYPP Checker is for economic (i.e. benefits related) eligibility checks only. If the child qualifies due to adoption, special guardianship, child arrangement order or they are a looked after child, please contact in the first instance. 

Claiming EYPP

If the check was successful, your EYPP checker spreadsheet will be updated with an EYPP code. This code must be be inputted onto the NEF submission spreadsheet when it is time to claim for the child’s funded hours. You also need to select the EYPP criteria the child qualifies under. If the successful check was made through the EYPP checker, this will be "FSM". 

Recent changes to EYPP mean that there is no longer a requirement to re-check EYPP status annually. This means that once EYPP eligibility is awarded, it remains in place for the duration of the child’s funded entitlement and you do not need to submit details again for rechecking. 

What is DAF?

The Disability Access Fund (DAF) is available to support providers to make reasonable adjustments to their settings and/or help with building capacity for the eligible child or for the benefit of children as a whole attending the setting.

This consists of an annual allocation of £910. Only one annual allocation of DAF can be made for each child. If the child is splitting their hours across more than one setting, the parent/carer will need to nominate the main setting to receive the DAF through the Parent and Provider Agreement.

Who is eligible for DAF?

Children must be receiving funded entitlement and be in receipt of Disability Living Allowance (DLA) to qualify. 

How can I claim DAF?

Complete this form to claim DAF for a child in your setting. Settings must have seen and retained a copy of the child’s DLA award letter, which will be checked as part of the local authority audit process. The child does not have to be taking up the full entitlement to access DAF.

A parent and provider agreement must be signed for each funded child accessing your setting, before funding commences. Parent and provider agreement forms will be checked when you have an audit with the Settings Finance Officer. 

The Settings Finance Team have produced guidance to support you with making funding claims and submitting eligibility checks.

Please email if you require additional support or further training. 

The Year Planner 2024 is available to show you the maximum hours available to claim in each funding period/term.

Parent & Provider Agreement and NEF Guidance

NEF Guidance539KBpdf
Size: 539KBFile format: pdf
Year Planner 2024175KBpdf
Size: 175KBFile format: pdf