Grace periods if no longer eligible for funded hours

[PensionPuzzle]

I will of course ask nursery but I suspect they might not have had this situation before (not been that open long and admin staff are new to it too) so thought a wider audience on here might know.

We currently get 15 hours & TFC, little one turns three this term so ordinarily of course would be TFC and 30 hours working parent funding in January. BUT we drop out of eligibility due to earnings next time I reconfirm in mid-October, we are very lucky in that respect and I'm very much not moaning about it!

But I'm wondering if it would affect the nursery negatively in any way? As in, they will have used the 15 hour funding code from Sept but we won't be eligible for any funding for the Nov and Dec invoices. I presume there's no grace period for us as parents but is there one for the setting? They struggle to get invoices right as it is so I'd like to know what to expect so we don't get any nasty surprises (either side) further down the line as we will be there for another 18 months or so.

I know I won't get TFC top-up the minute I say I'm not eligible but I assume I can still pay the bill out of the account as the bank details etc are all set up and I'll want to use it for the universal 15 hours code in Jan anyway?

Not an expert but I thought you were eligible for the full term and then drop out as of the next term.

You need to speak to you nursery as it will entirely depend on how the local authority run their funding admin system.

Your grace period is to the end of term. The nursery won't lose out because you'll either stay and use your funding, stay and pay privately or leave and they'll fill your space.

That's good then, possibly overthinking it. They are not for profit so we try to support/donate etc where we can too.

They might even be better off when we're paying the private rate 😂

Yes, the 3yo rate is shocking!

All 3yos get a universal 15 hours though, regardless. So if she's turning 3 now, you'll get that from Jan.

I believe if you were eligible at head count day you will get funding for that term. At some point you will need to renew your eligibility code and at this point it will show you’re no longer able to get funded hours. If it does change anything then you’d just have to make up the costs yourselves, it shouldn’t affect the nursery.

Your child will get 15hrs the term they turn three, regardless of your income.

You should have been given a grace period end date with your code.
That is when you will no longer be entitled to the funding.

When this happened to us they clawed back the overpayment (including TFC) via my partners tax return (you have to complete one when you go over £100k). I’d anticipate the same happening here. As it’s an annual amount, you stopped being eligible in April. But it won’t impact the nursery negatively so don’t worry about that.

Ah that would be a pain- he's changed his job this month so we have been eligible up til now this tax year- I did think that was why you get the 3 month reconfirm windows to allow for the fact that circumstances genuinely change?

All 3yos get a universal 15 hours though, regardless. So if she's turning 3 now, you'll get that from Jan.

Unless you're in Wales. In Wales the whole lot is means tested