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Hourly Rates From April 2026

At the end of December the DfE confirmed the overall hourly rates that Lewisham will receive for the delivery of the full range of EY entitlements. The information shown below was shared with and agreed by Schools Forum in January.  As we understand how vital this information is in order for you to plan for the implementation of the new early entitlements we are sharing this with you with as much notice as possible.

The table below provides a summarised version of the components that make up the funding and includes the hourly rates that will be paid to providers for the year from 1st April 26. In addition it demonstrates the 97% pass through rate, which has increased by 2% in the past 2 years in the pass through rate to providers. 

For ease of reference the columns are colour co-ordinated by age group and early entitlement.  Please note the funding remains indicative based on pupil numbers per headcount date. As you will be aware the manner in which funding is received and allocated does provide challenges for which it is necessary that a contingency is maintained.  The hourly rates that will be paid to providers for each of the entitlements is shown in the yellow row.

A brief description of each of the funding elements outlined in the above table are set out below.

  • The SENIF funding is open to all providers to apply for to support children with additional needs. 
  • Deprivation funding is allocated using IDACI information and the postcodes of children taking a funded place.  It is paid termly to providers who qualify by virtue of the number of children attending a setting who live in the most deprived localities.
  • The Quality factor is also an allocated funding element and is determined by the number of qualified teachers that a provider employs.  It recognises the higher costs associated with employing more highly qualified staff.
  • The contingency element is retained by the local authority to cover any unforeseen circumstances such as a sudden unanticipated increase in the number of funded places required.
  • The 3% holdback is the funding used by the local authority to deliver central services, this includes the administration of the early entitlements, the family information service and the quality and inclusion service.