Funded Early Learning information for providers

This page is intended for providers. If you are a parent looking for information about childcare or Funded Early Learning, please go to Funded early learning on the Sheffield Directory.

FEL is Government funded childcare for all 3 and 4 year olds and eligible 2 year olds.

Here, childcare providers can find guidance about claiming FEL funding and access the Sheffield Provider Portal.

Further information about FEL and the Code of Practice that sets out what providers in Sheffield must do in order to meet our requirements for delivering FEL are available on the Sheffield Directory.

Consultation: Early Years Provider payment frequency 2025 to 2026

We have a consultation for the payments made to all early years providers in Sheffield. This is for FEL and the proposal to change this from 1 April 2025. We invite all childcare providers who currently offer, or are planning to offer FEL from 1 April 2025, to respond to the consultation.

The consultation is open from Wednesday 2 October to midnight on Wednesday 30 October 2024.

Funded Early Learning termly Headcount Census

The Headcount is a data collection task. During each Funding Period, every child’s attendance details are collected to inform the Forecast, Actual and Amendment payments to providers.

You must submit your Headcount Census information via the Sheffield Provider Portal. We will use this to calculate the Funded Early Learning (FEL) payments due each term.

We will interpret any non-submission of Headcount Census returns as a nil return, which could mean the termination of FEL funding.

You must ensure Headcount Census returns are complete, accurate and submitted by the deadline dates highlighted below.

If there are any problems that you think may impact on meeting the deadline, please contact our Performance and Analysis Team.

Information about funding for children with SEND

Details concerning childcare funding for children 0-5 years with special education needs and disabilities (SEND), including the Disability Access Fund for early years providers, can be found on the Local Offer Section of the Sheffield Directory.

Indicative budgets and hourly rate

We will provide you with an indicative budget at the beginning of the financial year which broadly reflects anticipated participation.

During the year, we will adjust your budget to reflect actual levels of participation.

For funding and payment queries, please contact us. 

Maintained Schools hourly FEL rates are available on the School budget page.

For funding and payment queries, please contact eyfundingteam@sheffield.gov.uk.

Hourly rates 2024 to 2025

Hourly rates payable from 1 April 2024 to 31 March 2025

The Sheffield School Forum agreed on 26 February 2024 that the FEL funding hourly funding rates payable would be as follows:

  • under 2-year-old FEL for working parents (payable from September 2024) – £10.31
  • 2-year-old FEL, for both eligible disadvantaged and working parents – £7.58
  • 3 and 4-year-old FEL – £5.06
  • deprivation funding rates will remain static at £0.44 per pupil hour and is now payable across all age ranges
  • Early Years Pupil Premium Funding (EYPP) is payable at the rate of £0.68 and is now paid across all age ranges (this funding is only payable on the 3 and 4 year old universal FEL element hours – not 3 and 4yo Extended Free Entitlement hours) 
  • Disability Access Funding (DAF) is payable as an annual sum of £910 for all eligible pupils now paid across all age ranges

New Extended Entitlements for Working Parents

All Sheffield early years providers who offer a 2 year-old FEL place for the new entitlements for working parents of children aged 2 years from 1 April 2024 onwards will attract deprivation funding for eligible pupils. This will be at the hourly rate of 44p per pupil. As the Funding Team do not yet have the pupil data for the new entitlements from 1 April 2024, we cannot predict the deprivation hourly funding rate payable to each Sheffield provider. 

Our officers will begin to calculate the actual Summer 2024 pupil data (in the early autumn 24 term) to determine the deprivation funding rates payable to all EY providers. These will be retrospectively paid and backdated from 1 April 2024.

The same scenario as described above will apply to the new entitlements for working parents of children aged 9 months + 1 term payable from September 2024. Our officers will begin to assess the actual Autumn 24 pupil data (in the spring 25 term) to determine the deprivation funding rates payable to all EY providers that will be retrospectively paid and backdated from 1 September 2024.

Deprivation Funding Explained

All Sheffield early years providers who attract deprivation funding for eligible pupils are paid at the hourly rate of £0.44. 

There is a worked example that clearly explains how the annual deprivation funding is calculated in the attached document on page 18 of the How To Claim The Funded Early Learning Entitlement document. 

The only way that any Sheffield early years provider would attract £0.44 per hour in 2024/25 is if all children in attendance at your setting in 2023 were all classed as deprived.

Hourly rates 2023 to 2024

Hourly rates payable from 1 September 2023 to 31 March 2024

The Government’s spring budget announcement about the additional £204m funding payable to the Early Years sector was made on 15 March 2023. The Department for Education (DfE) confirmed on 7 July 2023 that the Early Years Funding rates will increase for all Early Years providers from 1 September 2023.

Sheffield was awarded additional funding for Early Years Teachers Pay Additional Grants (EYTPAG), totalling £154,217, as announced 16 November 2023. This funding is to cover the period 1 September 2023 to 31 March 2024. It is payable for all 3 and 4 year old universal and EFE FEL hours based on the January 2023 census.

The hourly rate increase is £0.04 per pupil hour for all 3 and 4-yer-old FEL providers. It is £0.19 per pupil hour for Maintained Nursery Schools (MNS) (Broomhall and Grace Owen). 

The increased funding rates payable in Sheffield are as follows:

  • 2-year-old FEL is at £7.36
  • 3 and 4-year-old FEL base rate is £4.92 for all providers and £5.07 per hour for the 2 x MNS in Sheffield.
  • Deprivation funding will remain static at £0.44 per pupil hour
  • Early Years Pupil Premium Funding (EYPP) is payable at the rate of £0.66 (EYPP is only paid for the Universal Hours element entitlement for the 15 hours FEL only for eligible pupils)
  • Disability Access Funding (DAF) is payable at £881 for all eligible pupils

These increased hourly rates will be payable from 1 September 2023 to 31 March 2024.

Hourly rates payable from 1 April 2023 to 31 August 2023

The Sheffield School Forum agreed at the meeting held on 23 February 2023 that the FEL funding hourly rates payable would be as follows:

  • 2-year-old FEL is at £5.63
  • 3 and 4-year-old FEL base rate is at £4.59
  • Deprivation rates will remain static at £0.44 per pupil hour
  • Early Years Pupil Premium Funding (EYPP) is payable at the rate of £0.62 (EYPP is only paid for the Universal Hours element entitlement for the 15 hours FEL only for eligible pupils)
  • Disability Access Funding (DAF) is payable at £828 for all eligible pupils

These hourly rates are payable from 1 April 2023 to 31 August 2023.

Funding consultations

Early Years Single Funding Formula: New Entitlements

An Early Years Single Funding Formula consultation went live on 7 December 2023 and closed on 19 December 2023.

We consulted with early years childcare providers in the city to find out your views on the new funding streams to apply consistency across all age ranges.

Early Years Funding Balances 2021/22

An Early Years Consultation went live on Tuesday 26 June for 4 weeks and closed on Monday 24 July 2023.

Sheffield City Council consulted with all early years childcare providers in the city to seek your views on how we should distribute the net positive out turn for the early years funding for the financial year 2021/22. This totalled to £465k.

Consultation on the Proposed 2023/24 Increased Early Years Funding Rates

The results of the Early Years Proposed 2023/24 Increased Early Years Funding Rates that took place from 20 January 2023 to 1 February 2023 have been compiled.

There was a 30% response rate and 60% of voters chose Model 1, to distribute the full £0.16 to the sector via an increase in the base hourly funding rate. This was recommended to the Sheffield School Forum on 23 February 2023.

Early Years Disability Access Funding Consultation to distribute £554,000

The results of the Early Years Disability Access Funding (DAF) Consultation that took place from 4 July 2022 to 31 July 2022 have been compiled.

There was a 12% response rate. 48% of voters chose Model 3, to distribute the £554,000 funding to the Early Years sector.

This will be recommended to the Sheffield Early Years Working Group on 9 September 2022. Model 3 provides a share of the £554,000 positive DAF balances to all current 3 and 4 year old FEL providers paid for any FEL participation hours in 2021/22. The full report is avilable to read.

Early Years Deprivation Funding Consultation £1.2 million

The results of the consultation with the Early Years Sector to agree the Sheffield Deprivation Funding Methodology, for Implementation from 1 April 2023 have been compiled. The consultation ran from 6 July to 31 July 2022. There was a 12% response rate with 86% of voters agreeing to the current IDACI method of distribution. This will be recommended to the Sheffield Early Years Working Group on 9 September 2022. You can read the full report.

Sheffield Provider Portal 

The Sheffield Provider Portal allows you to access a secure online tool to submit your FEL Headcount Census returns for 2, 3 and 4 year olds quickly and efficiently each term.

Guidance documents are available to help you complete your Headcount Census returns via the portal.

If you have not yet registered for access to the Sheffield Provider Portal, please complete and return the Portal Access Request Form.

Anycomms

As a FEL provider you will be required to have access to the ‘Anycomms’ system. This system is utilised to carry out data quality tasks such as:

  • previous term adjustments
  • double funding queries
  • 2 year old compliance checks

If you do not already have a username or password for the ‘Anycomms’ system please email us. We have also created a guide for anyone who needs further assistance.

Sharing of information

Privacy notices set out how we ensure the privacy of the information families provide and to let them know their information rights, as well as how their information may be used.

If you would like more information about how to issue the Privacy Notice contact the Performance and Analysis Service.

How we will communicate with you

We send all important news to providers through our Early Years Provider News Bulletin. The Code of Practice requires you to sign up for this.

Is this page helpful?

Is this page helpful?