Nursery Funded Hours Revenue Calculator 2025/26

LA funding rates vary significantly by region and age group. For 2025/26 the national base rates are approximately £11.22/hr for under-2s, £8.28/hr for 2-year-olds and £5.68/hr for 3-4 year olds — but local authorities supplement these with local factors, deprivation weighting and quality supplements. London rates tend to be significantly higher. Most nurseries report that funded rates do not cover the full cost of provision for 3-4 year olds, requiring cross-subsidy from private fee sessions.

Nurseries cannot charge top-up fees for the funded hours themselves — the government-funded session must be free to parents. However, nurseries can charge for meals, snacks, nappies, trips and additional hours beyond the funded entitlement. They can also offer enhanced or extended sessions at a separate commercial rate. The funded period must be a genuine standalone offer; nurseries cannot make receipt of funded hours conditional on purchasing additional sessions.

EYFS statutory ratios: children under 2 — 1 adult to 3 children; children aged 2 — 1 adult to 4 children; children aged 3-4 (without a teacher) — 1 adult to 8 children; children aged 3-4 with a qualified teacher — 1 adult to 13 children. From September 2023, the ratio for 2-year-olds was relaxed from 1:4 to 1:5 on a voluntary basis, but this remains controversial and many providers maintain 1:4. Staff must hold relevant qualifications and first aid certificates.