Funding confusion

[nurseryconfusion]

Hoping someone can help me understand the government funding situation at our nursery.

I've included a photo, but on the app, so we shall see if it works.

Nursery have shown me this table with fees we'll pay at 9 months, 2 years and 3 years with 15 hours government funding. I don't think this includes tax free childcare.

I don't understand why it's more expensive for a 4 year old to go to nursery for 2 days a week than it is for a 9 month old. The daily fee is the same regardless of age, and they get the same hours funding.

Anyone know?

I have emailed nursery to ask, but appreciate if anyone knows

The rates of funding paid are different. It's less the older they are.

It does seem like an odd way to do it, at ours they get cheaper as the ratio changes. Babies cost the most and preschool is the cheapest.

The government has given more funding for younger years as the ratio is smaller
But then your nursery hasn't discounted the fees as the ratio increases.

I understand that from government side due to ratios, but from a parent side we get 15 hours.

There's no difference in day rate by age, so it doesn't make sense the 15 hours wouldn't go as far.

The funding rate drops quite significantly for 3 and 4 year old children. This is the reason many settings have already closed, the funding just isn’t enough. The highest rate paid is between 9 months and 2 years, then the rate drops for 2 year olds before taking a nose dive for 3 and 4 years olds.

That's your opinion but we don't know how the nursery finance team have chosen to split the deficit.

For what it's worth, I change the same for all ages but I accept that each setting apply their funding differently.

@BusyCM this is the part that confuses me though, because it's not an opinion, it's just the maths of the numbers they have provided.

I absolutely understand the government scheme can be really tough for nurseries, so it's not me feeling the nursery doesn't do enough (they're wonderful), it's just confusion that the maths here makes no sense

OK I don't get what you don't understand. You said you know they are paid less for 3 and 4 year olds? But you seem to be saying that you don't know why that means parents are charged more? Well essentially if they don't, they will shut down.

As I said, I don't work this way, however i get that others may.

For 3 and 4 year old funding, the nursery gets paid a lot less than for the younger children. Due to being paid far less than their usual charges from the government, they need to recoup these losses in some way otherwise they may have to close. Because they get paid more for younger children they’re not asking for for as much of a contribution, especially when it comes to under 2’s only doing 15 hours, but older ones require more of a contribution. For example, you can see that the contribution towards 3/4 year olds, going by your screen shot, is higher because of the lack of funding than it is for 2 year olds.

It looks like they’ve simply taken the received funding off their daily rate and the parent pays whatever is left of the daily fee after this. Funding rates will be different for different ages, also the eligibility of some funding will depend on circumstances of different families.