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Childminder Funding and 15 30 Hours Entitlement Guide

Navigating government funding entitlements as a UK childminder can feel like walking a tightrope between compliance and profitability. With the Department for Education (DfE) expanding the 15 and 30 hours funded childcare scheme to working parents of children aged 9 months through to 4 years, childminders have an unprecedented opportunity to secure a steady, predictable income stream. However, claiming government funds incorrectly or failing to structure your additional charges properly can quickly erode your take-home pay.

30 Hours Max Weekly Entitlement
9m – 4yo Eligible Age Range
38 Wks Standard Term Time
0 Top-Ups Strict DfE Rule

Whether you are setting up your childminding business for the first time or reviewing your current fees policy, this practical guide walks you through claiming government funding, managing DfE rules on consumables and meals, and structuring your contracts so your setting remains profitable.

1. Understanding the Expanded 15 & 30 Hours Childcare Scheme

The Department for Education funding framework is designed to help working parents access subsidized early years education while encouraging early years practitioners to deliver high-quality care under the Early Years Foundation Stage (EYFS) framework.

Under 2s (9 to 23 Months)

Eligible working parents receive 15 hours per week (or up to 30 hours under the full rollout) over 38 weeks during term time. Hourly local authority funding rates are highest for this age group to reflect tighter childminder staff-to-child ratios.

2-Year-Olds

Working families receive 15 to 30 hours per week. Separate universal support funding also exists for families receiving qualifying government support.

3 & 4-Year-Olds

All families receive 15 universal hours per week, with eligible working families receiving up to 30 hours per week across the academic year.

2. How Childminders Register to Receive Funding

To accept funded hours from parents and claim payments directly from your Local Authority (LA), you must fulfill several core administrative requirements:

  • Ofsted / Childminder Agency Registration: You must hold an active registration on the Ofsted Early Years Register (or with an approved Childminder Agency) with a rating of ‘Good’, ‘Outstanding’, or ‘Met’.
  • Sign the Local Authority Provider Agreement: Every LA has a standard early years agreement outlining payment terms, headcount deadlines, and compliance rules.
  • Active Business Bank Account & Insurance: Ensure your payment portal details match your business accounts, supported by valid childminder public liability insurance.
  • Set Up Your LA Portal Account: Claims are submitted online during fixed termly headcount windows (Autumn, Spring, and Summer terms).
⚠️ Mandatory DfE Rule: No “Top-Up” Fees

Under Department for Education statutory guidance, providers cannot charge top-up fees—defined as the difference between your normal private hourly rate and the hourly rate paid by the local council. Funded hours must be completely free at the point of access. Mandatory registration fees or non-refundable deposits applied to funded hours are strictly prohibited.

3. The Profitability Formula: Legal Consumables & Extra Hours

Because local authority hourly funding rates can sometimes fall below a childminder’s standard hourly rate, relying solely on basic funding can create a revenue gap. To protect your profitability while maintaining full compliance, you must understand what charges are permitted under DfE guidelines.

1. Voluntary Meal & Snack Charges

You may charge parents for cooked meals, breakfast, and snacks, provided parents are given the option to supply their own packed meals without losing their funded place.

2. Consumables Packages

Charges for non-food items—such as nappies, baby wipes, sun cream, and specialized craft supplies—can be billed separately, provided they are voluntary and clearly itemised.

3. Outings & Additional Services

Specialist classes (e.g., music or language sessions) and transport/entry costs for outings can be charged as optional add-ons.

4. Private Additional Hours

Care provided outside the funded hours (e.g., early drop-offs, late pick-ups, or wrap-around care) is billed at your standard private hourly or daily rate.

Free Download: Childminder Funding & Fee Schedule Template

Get our ready-to-use template designed to help UK childminders clearly itemise free hours, voluntary consumables, and extra hours for parent invoices in full compliance with local authority requirements.


4. Standard Funding vs. Stretched Funding Models

The standard government entitlement covers 38 weeks per year (term-time delivery). However, most childminders operate 48 to 52 weeks a year. To avoid zero-income periods during school holidays, childminders can offer a stretched funding model.

💡 How Stretched Funding Works

Instead of offering 30 hours per week across 38 weeks (1,140 total hours per year), you divide the 1,140 hours across 50 weeks. This equates to 22.8 funded hours per week year-round. The remaining hours needed for full-day care are charged at your private hourly rate, generating smooth, consistent monthly invoices for families.

5. Invoicing & Transparency Compliance Checklist

From 2026 onwards, local authorities require childminders to issue transparent, itemised invoices to ensure funded hours are clearly separated from private fees. Check your invoices against this standard layout:

  • Show total session hours delivered (e.g., 40 hours per week).
  • List funded entitlement hours clearly calculated at £0.00.
  • Itemise additional private hours billed at your normal rate.
  • Break down voluntary meal/snack packages as separate line items.
  • List voluntary consumable packages separately.
  • Include parent sign-offs using a written Parental Declaration Form before care begins.

Having clear policies is crucial when inspections take place or when fee disputes arise. Make sure your business has a published fees policy linked directly to your setting’s approved nursery policy and procedures documentation.

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Summary: 4 Steps to Maximising Your Setting’s Profitability

  1. Calculate your true cost of delivery: Review your initial childminder start-up costs and ongoing overheads to know your minimum hourly threshold.
  2. Publish clear consumable charges: Clearly outline what your food and consumable packages cover, ensuring parents have a genuine option to opt out.
  3. Use stretched funding contracts: Spread funded hours across 48–52 weeks to maintain predictable monthly income throughout the holidays.
  4. Submit claims early: Keep track of your local authority portal submission deadlines to prevent delayed payments.

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