Interesting-it obviously varies a lot. Our LA’s Insets are spread across the year-at the start/end of terms and often in the middle as well.
It’s only really teachers I know that have a term time only arrangements with their childcare as everyone else needs it year round and they all have the Insets as part of their arrangement.
Most LAs do the same for inset days by spreading them out.
All funded children get the same number of days so nobody is better/worse off.
For example one 3 year old will be in a day nursery for their funded hours and another will be in a school nursery.
Both get the same amount of funded hours.
The child in the school nursery has the day off when the inset days are. They don't attend and there's no funding for them because funding is 190 days.
The child in a day nursery also doesn't get funding for that day, so there's the option for the nursery to refuse to have the child, but most will still take the child because they're open. The funded day has to come off somewhere else though because there's only funding for 190 days.
Both sets of parents have to sort additional paid for childcare for the inset days.
The parent of the child in the school nursery has to find childcare for the insets spread throughout the year on the exact days.
The parent of the child in the day nursery will have to pay for 5 days somewhere else. Often this is a block week somewhere else that isn't covered by funding.
Both families get 190 days of funding.
Both families have to make arrangements for the 5 days inset.
It's not uncommon for the term time contracts with childcare providers to include the inset days, precisely because it's generally school staff wanting those contracts and they need the 195 days. It means that for those who don't have funding (like under 3s) are paying for 195 days.