Funded hours income calculator
Short answer: a child’s yearly income is funded hours × your council’s rate, plus additional hours × your private rate, plus any voluntary extras. 30 hours a week is 1,140 funded hours a year. For a 3-year-old at the national average rate of £6.42, that’s £7,318.80: about £1,800 less than the same hours at £8 an hour.
Updated 6 November 2026, using DfE’s 2026 to 2027 funding rates. For England. Rates are national averages paid to councils: enter your own council’s rate for an accurate figure. A planning aid, not financial advice.
How it works
- Funded hours a year are the weekly hours × 38 weeks: 570 or 1,140. If parents stretch them over more weeks, the yearly total and your income stay the same.
- Additional hours are everything the child attends beyond the funded hours, at your private rate.
- Extras such as meals and consumables must be voluntary on funded hours, so don’t count on every family paying them.
- Not included: early years pupil premium (up to £655 a year per eligible child), the disability access fund (£975 a year), SEN inclusion funding and any council supplements.
National average rates, 2026 to 2027
| Age | Hourly rate | 30 hours a year | 15 hours a year |
|---|---|---|---|
| 9 months to 2 years | £12.04 | £13,725.60 | £6,862.80 |
| 2-year-olds | £8.90 | £10,146.00 | £5,073.00 |
| 3 and 4-year-olds | £6.42 | £7,318.80 | £3,659.40 |
These are DfE’s averages paid to councils. Councils keep up to 3% and set their own rates, so check the local authority rates for 2026 to 2027. Who qualifies and what you can charge: early years funding 2026 to 2027. How many children a room can take: nursery capacity calculator.
Questions
How much does a nursery get for funded hours?
Your council sets your hourly rate. DfE pays councils a national average of £12.04 an hour for children aged 9 months to 2, £8.90 for 2-year-olds and £6.42 for 3 and 4-year-olds in 2026 to 2027, and councils must pass on at least 97% to providers. Look up your council’s rate on GOV.UK.
How many funded hours are there in a year?
15 hours a week is 570 hours a year and 30 hours a week is 1,140, based on 38 weeks. Parents can stretch them over up to 52 weeks where you have space, but the yearly total stays the same, so your funding income for that child doesn’t change.
Can a nursery charge top-up fees on funded hours?
No. Funded hours must be free at the point of use, with no mandatory charges. You can charge for additional hours, and for meals, consumables and activities, but those extras must be voluntary: parents must be able to opt out.
Why is my funded rate lower than my private rate?
For 3 and 4-year-olds the national average funding rate (£6.42) is below what many nurseries charge privately. For under-2s the average rate (£12.04) is often higher than private fees. The calculator shows the difference per child so you can see where the gap is.
Does this include early years pupil premium or disability access fund?
No. Add them on top if a child is eligible: early years pupil premium is £1.15 an hour on up to 570 hours (up to £655 a year), and the disability access fund is £975 a year per eligible child.
Sources
- Early years funding rates 2026 to 2027: easy explainer, DfE
- Early years funding 2026 to 2027, DfE, local authority rates
- Early education and childcare: statutory guidance for local authorities, DfE, valid from 1 April 2026
More guides: all our guides for nurseries, childminders and schools.
Do parents know what they’ll pay?
Funded hours, additional hours and extras confuse parents. A clear fees page answers it before they ask. Run our free checker to see whether your website shows your fees, funded hours and extras.
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