There was new guidance published yesterday around funding and what can be charged etc. although it looks good for parents, for providers it has made an already difficult situation more difficult.
Basically providers can only ask for a voluntary contribution towards consumables for funded hours, and these consumables are considered to be things like: nappies, wipes, food & sun cream, plus extra-curricular trips/clubs/activities. This is because everything else is considered to be part of the offer under the EYFS and funding rules. Yes, the government now pays, via your LA, an increased funding amount, which varies according to the age of the child, these amounts do not cover the cost fully for operating a setting. The amounts have increased on average by 3% from April, but the increase in NLW & NI is around 10%, so you can understand why providers are upset by the guidance issued yesterday.
I am sure there will be more settings refusing to offer funded hours, especially for 3&4 year olds as this funded rate is far too low, or further restricting when they will offer the hours, or how many children will have funded hour spaces. Additionally, I am sure there will be more settings closing due to not being financially viable.
Amongst this new guidance there is also instruction that settings should, by January 2026, publish clearly on their websites, or on their LA's Family Information website, a clear fee structure and what the voluntary charges for consumables are, with ease broken down into individual costs. There is however an exception made for this to be done for settings with less than 10 children in at any time, e.g. childminders and small nurseries.