Funded hours are now how many families pay for childcare, and a big part of many childminders' income. The rules have changed a lot, and the Department for Education's current guidance is clear that funded hours must be free to parents, with no compulsory charges attached.
No top-up fees
Many older guides talk about top-up fees, where you charge families the difference between your usual rate and the funding rate. That isn't allowed. The guidance says providers must not charge parents a top-up fee in connection with funded hours, or make any payment a condition of taking up a funded place. Non-refundable deposits, registration fees and retainers on funded places aren't allowed either.
What you can charge for
You can charge for genuine extras as long as they're voluntary, such as meals, snacks, nappies, sun cream and other consumables, or activities like trips and classes. Parents must be able to opt out, and you have to offer reasonable alternatives, such as letting them send their own food or nappies, or waiving the cost. You can also charge your normal rates for private hours outside the funded hours, as long as booking private hours isn't a condition of the funded place.
Itemised invoices
Your invoices must show funded hours, private hours and each chargeable extra on separate lines, with your full details, so parents can see what they're paying for and that the funded hours are free.
The parental declaration
Before a child first takes up a funded place, you complete a parental declaration with the family, setting out their funded hours, their weekly pattern and any optional extras they've chosen. Go through it together each term.
Making it work financially
Funding rates don't always match what childminders charge. Hidden charges won't fix that, and they aren't allowed. What helps is being clear about the structure: which hours are funded, which are private, which extras are optional, and how funded hours are spread across the year. Stretched funding, where the hours are spread over more weeks, can help families with year-round places.
Follow your local authority
Your local authority's provider agreement adds its own rules, for example on when funded hours can be delivered and how you claim them. Read it, and make sure your contract refers to it.
I built GoChildmind's funded hours section around this guidance. It separates funded and private hours, makes every extra optional with an opt-out, and itemises everything.