Funding for the Early Years and Childcare Entitlement

The Early Education and Childcare Statutory Guidance states:

"A1.36 Invoices and receipts should be itemised, and local authorities should work with providers to ensure their invoices break down separately into:

• the free entitlement hours
• additional private paid hours
• food charges
• non-food consumables charges
• activities charges

Local authorities should ensure these itemised invoices are in place by January 2026. This is to allow parents to see that they have received their child’s free entitlement hours completely free of charge and understand that any fees paid are for additional hours or optional services. Invoices and receipts should include the provider’s full details so that they can be identified as coming from a specific provider."

Providers should publish the cost of chargeable extras on their websites and ensure parents understand which hours / sessions can be taken as free provision.

A Chargeable Extras template has been provided by the Department for Education.  

The Local Authority may carry out termly checks and or/audits on randomly chosen providers to ensure compliance with the requirements of delivering free entitlements and will provide a written record of such checks, including actions and recommendations to the provider.’