PVI agreement for funding
The agreement details the requirements and expectations that early years Providers must meet in order to be eligible to deliver free early education entitlements for eligible children and draw down the subsequent funding.
It covers the following:
• The 15/30 hour entitlement for children of eligible working parents from the the term after the child turns 9 months old until they reach statutory school age
• The 15 hour entitlement for the most disadvantaged two-year-olds
• The 15 hour entitlement for parents of three and four-year-olds (the universal entitlement)
Funding agreement documents
- PVI agreement for funding
- Annex A: Parent Declaration Form for the Free Entitlements
- Annex B: Business Planning and Quality Improvement Processes
- Annex C: Appeals Process
Forms
This form can be issued to all parents eligible for the Working Families funded childcare and sets out their responsibilities:
Other Tools and Resources to Support the new Expanded Entitlement
As part of the expansion of the new entitlements Childcare Works has been appointed to support Local Authorities and providers. They have created the Childcare Works HUB which hosts useful resources to support providers and schools.
Providers can access the Hub via:
- HUB for providers - Childcare Works website
Free Entitlement Funding rates for April 2025 – March 2026
The following table is a breakdown of the hourly rates for each of the Free Entitlements:
| Type of Free Entitlement Funding | Hourly Base Rate | *Deprivation Supplement | **EYPP | Possible Maximum Hourly Rate |
|---|---|---|---|---|
| Under 2-Year-Olds | £11.10 | N/A | £1.00 | £12.10 |
| 2-Year-Old – Families receiving additional support | £8.14 | N/A | £1.00 | £9.14 |
| 2-Year-Old – Working Families | £8.14 | N/A | £1.00 | £9.14 |
| 3 and 4-Year-Old | £5.56 | 20p | £1.00 | £6.76 |
Additional funding supplements are designed to meet national and local objectives.
*A deprivation supplement is required by legislation to support the Government’s objectives of narrowing the gap between children from different backgrounds and eradicating child poverty.
**Low-income families who are in receipt of one or more of the benefits used to access eligibility for free school meals, children who are looked after by the LA for at least one day, adopted from care, have a special guardianship or subject to a child arrangement order are entitled to the Early Years Pupil Premium.
Guidance and legislation
- Claiming Disability Living Allowance for children
- Early Education and Childcare Statutory Guidance
- Early Years entitlements; operational guidance 2024-25
- Childcare Act 2006
- Childcare Act 2016
- Data Protection Act 1998
- Equality Act 2010
- Help in the early years if you are concerned about your child
- School Admissions Code
- Statutory Framework for Early Years Foundation Stage
- SEN and disability code of practice 2015
- Promoting good attendance and punctuality
- The Business and Intellectual Property Centre (BIPC) Manchester