Portland Kindergarten Limited

Childcare Vouchers & Funding

Schools and Nurseries who provide the Early Years Education Funding must follow the government’s Early Years Foundation Stage curriculum for 3 and 4 year olds. The quality of their provision is monitored by the Office for Standards in Education (OFSTED). Early years education should provide a combination of care, play and education, enthusiastic early year’s workers, good resources and equipment and an approach that will meet the needs of your child.

Childcare Vouchers

The government has provided tax breaks on childcare. The process, sometimes known as “salary sacrifice”, enables each working parent to give up an amount of their wages before tax. Instead, the employer gives the money directly to the childcare provider. Since parents will not have to pay tax or National Insurance on the money they use to pay for childcare, overall costs are cheaper. When using the voucher system, a fixed monthly amount goes to the nursery, and you top the rest of your fees up with a cheque payment. 

Ask your employer about childcare payments and you could save up to £900 a year on childcare. 

The government has a set rate of £243 a month which you can take off your wages for childcare vouchers.

Please note, you cannot use both childcare vouchers and working tax credits. To calculate the best option for you, visit www.hmrc.gov.uk/childcare  and click childcare indicator.

3-5 Year Old Funding

All children aged 3-5 years old in Britain are eligible for 12.5 hours of free education a week, for 38 weeks of the year. Portland Kindergarten is able to provide these funded places for children. 

Your child will be eligible to have this funding from the first term after their third birthday. They will then be able to have up to 5 funded sessions per week. Each session is 2.5 hours long.  You can use up to 2 funded sessions per day. We will arrange all the paperwork for you and then refund the 12.5 free hours off the rest of your weekly/monthly invoice. Educational funding can make a huge difference in reducing the cost of your nursery bill.

Most frequently asked questions about Nursery Education Grant Funding

When can my Child start free Nursery Education?

Your child becomes eligible for a free Government Early Years Education Funded place from the start of the school term after their third birthday. This means that most three year olds will be able to start a free nursery place in the September, January or April following their third birthday.

A child aged three by:

31 March will be eligible for free nursery education from the Summer Term (After Easter)

31 August will be eligible for free nursery education from the Autumn Term (September)

31 December will be eligible for free nursery education from the Spring term (After Christmas)

How many sessions can my Child have?

Your Child is entitled to a maximum of 5 sessions of 2½ hours for 38 weeks of the year. To be included in the headcount allocation your child needs to be registered with an approved provider of early education on headcount day which falls within the first three weeks of term. Approved providers include childminders, playgroups, pre-schools and day nurseries that are registered and inspected by OFSTED.

Parents can choose which provider they would like their child to go to, as long as there are places available.

How do I get free Nursery Education?

Parents do not need to apply for the funding. Each term the nursery provider claims on behalf of the parents for the number of sessions their child will be attending and the Local Authority will then pay the funding directly to the provider.

The funding is not paid directly to parents. Your fees can be reduced to reflect the number of free 2½ hour sessions you wish your child to receive (up to 5 sessions per week).

If your child has a place at a provision which is open all year, it is important to check how many weeks in the year they will be funded. The funding covers a minimum of 38 weeks in total. There are periods not covered by the funding, for example at Christmas, Easter and Summer Holidays.

As different providers charge different fees the amount by which a parent’s fees are reduced in one setting may be different from the reduction in another setting. Only one session can be claimed per morning or afternoon. Remember you may also be entitled to the Working Families Tax Credit to help you with the cost of child care fees not covered by the Early Years Education Funding.

Can I use two sessions in one day?

You can use two sessions in one day but there must be a break in between sessions of at least one hour. Sessions could be over five mornings or five afternoons per week or could be two and a half days subject to spaces available.

Do all five sessions have to be with the same provider?

The five sessions do not have to be used with the same provider but you must inform both providers that you are splitting the sessions. You cannot have more than five funded sessions per week and you do not have to use all five sessions if you do not want to.

Can I move provider in the middle of a term?

Yes, you should be able to. The funding for your child’s place is paid to the nursery in one lump sum at the beginning of the term. The nursery that you wish to move to will be obliged to accommodate your child, if they have a suitable vacancy. The new Nursery will however not receive funding until the next term.

Does my child have to take up an early education place?

It is up to parents to decide what kind of early education, if any, is right for their child. By law, children are not required to attend any educational setting until the term after their fifth birthday. The grant is only available until your child starts school.

The above information is for guidance only and is our interpretation of the current regulations that may alter at anytime. Please contact us if you require further information. Last update 10/12/2009