nursery is introducing 'stretched funding' - which I find it unfair

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I'm seeking opinions and suggestions on this matter. Currently, we qualify for 30 hours of funding, and our child attends a private nursery full-time (50 hours). Consequently, during term time, we pay for 20 hours of childcare along with additional activities and meals. During term breaks, we cover the full 50 hours.

Now, our nursery plans to introduce 'stretched funding' in 2024. Essentially, this means they will spread the 30 free hours allocated for 38 weeks (term time) across the full 52 weeks. Consequently, each week, we would receive approximately 22 free hours.

While this scheme doesn't impact those planning to attend nursery for the entire year, it does affect those leaving. Depending on the departure date, individuals may receive fewer free hours.

For example, between January 1st and March 31st, there are 13 weeks, of which 2 are non-funded. Under the old scheme, we would receive 11 * 30 = 330 free hours. However, with the new scheme, we'd receive 13 * 22 = 286 free hours.

This results in a loss of 44 free hours for parents. I'm unsure if the nursery would return these 44 hours of funding back to the government in this scenario.

Are nurseries allowed to make this adjustment? If not, how can I officially file a complaint about it? It seems a bit unfair to me.

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  • gwynlas
    gwynlas Posts: 1,709 Forumite
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    If you have a leaving date in mind then work out how many hours should be free and how many need to be paid for under current rules and put this in writing to them. Missing out on free hours thus paying for moreseems to be a business argument weighted in their favour. As with any other contract negociations need to take place, they migh believe that proposed new system is easier for people to budget around.
  • DeLaSole
    DeLaSole Posts: 68 Forumite
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    edited 9 December 2023 at 12:52PM
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    happypie said:

    I'm seeking opinions and suggestions on this matter. Currently, we qualify for 30 hours of funding, and our child attends a private nursery full-time (50 hours). Consequently, during term time, we pay for 20 hours of childcare along with additional activities and meals. During term breaks, we cover the full 50 hours.

    Now, our nursery plans to introduce 'stretched funding' in 2024. Essentially, this means they will spread the 30 free hours allocated for 38 weeks (term time) across the full 52 weeks. Consequently, each week, we would receive approximately 22 free hours.

    While this scheme doesn't impact those planning to attend nursery for the entire year, it does affect those leaving. Depending on the departure date, individuals may receive fewer free hours.

    For example, between January 1st and March 31st, there are 13 weeks, of which 2 are non-funded. Under the old scheme, we would receive 11 * 30 = 330 free hours. However, with the new scheme, we'd receive 13 * 22 = 286 free hours.

    This results in a loss of 44 free hours for parents. I'm unsure if the nursery would return these 44 hours of funding back to the government in this scenario.

    Are nurseries allowed to make this adjustment? If not, how can I officially file a complaint about it? It seems a bit unfair to me.

    Hi happypie,

    For our local authority (LA), providers sign a provider agreement so to allow them to offer funded hours. Our provider agreement says that we can stretch funded hours IF agreed with the parent. 

    Your LA's provider agreement may be publicly available online but it's probably quicker to contact your LA's Early Years team to run your nursery's plan by them. The nursery should operate in a way compliant to that provider agreement and any contract they have with you.

    Best wishes.


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