When a funded child leaves part way through a term, some childminders are told their council wants money back. Whether that's right depends on your council's provider agreement, because the national guidance leaves the detail to each local authority. It does say what councils have to make clear, and that's what you can ask for.
What the DfE guidance says
The Department for Education's statutory guidance, Early education and childcare, says local authorities should be clear in their provider agreements about how and when providers are paid. It names children moving between providers mid-term as a case they must explain, along with children who split their hours between settings or arrive in the area part way through a term.
It also says councils should fund providers based on the hours planned and agreed with the parent, and not penalise providers for short-term absences such as sickness, arriving late or leaving early.
Why councils differ
Most councils fund each term from a headcount, a count of funded children taken on a set date. What happens after that date when a child leaves is where councils differ. Some pay you for the whole term, some adjust payments from the date the child leaves, and some recover money once the child has started somewhere else, so the new provider can be paid.
What to ask your council
If you're asked to repay funding, ask for these in writing:
- The clause in your provider agreement that allows them to recover it.
- How the amount was worked out, week by week.
- Whether they'll recover it over time instead of all at once.
- Their complaints procedure, which the guidance says councils must publish.
Ask before you agree to anything, and keep it in writing.
What your contract can and can't do
You can't charge a family for funded hours to make up for money a council recovers, because funded hours must be free to parents. Your notice period still applies to private hours, and a clear notice clause gives you time to fill the place. My notice periods guide covers that side.
Questions people ask
Can a council take back funding when a child leaves? It depends on your provider agreement. The DfE guidance says councils must be clear about how providers are funded when children move between providers during the term.
Can I charge parents if the council recovers funding? No. Funded hours must be free to parents, so you can only charge for private hours and optional extras, as your contract sets out.
Where is the guidance? On GOV.UK, as the Early education and childcare statutory guidance.