2 year funding payments

[Mrsh3103]

I've got a 2yo who had his birthday in sept so is eligible for funding as of January. I've had a call telling me the application has been approved and the 1st payment will be made at the end of February!!!! So I'll be paid by the parent on the 1st dec for dec then I'll have to wait 3 months for my next payment!
Has this happened to anyone else?

[Simona]

I've got a 2yo who had his birthday in sept so is eligible for funding as of January. I've had a call telling me the application has been approved and the 1st payment will be made at the end of February!!!! So I'll be paid by the parent on the 1st dec for dec then I'll have to wait 3 months for my next payment!
Has this happened to anyone else?

LAs vary a lot on how they pay providers...mostly it is in arrears
I would contact you LA and see what their rules are and if they can be flexible for cms...we are much smaller businesses than nurseries and need to be sustainable

Good luck

[Tazmin68]

My la changed it used to be week 9-10 we would be paid the whole amount. From this September it changed to the same as the 3/4 year old places which is 80% at the beginning on the term with the remaining being paid 2 weeks prior to the end of the term.

Debbie

[Mrsh3103]

Thanks Simona. I had assumed they would be paying in arrears but 2 months??? They've sent me a paynent schedule and it's payment every 2 months. Really unhelpful for childminders

[hectors house]

I assumed it was partly in advance and the rest in arrears - is it because the attendance criteria is stricter for those who qualify for 2 year old funding? I am registered to do funding but don't have any eligible children at the moment.

[Simona]

I assumed it was partly in advance and the rest in arrears - is it because the attendance criteria is stricter for those who qualify for 2 year old funding? I am registered to do funding but don't have any eligible children at the moment.

Who knows?...before Cms go off and sign the LA 'conditions of grant' do look at the conditions, read the small print and do ask about payments
As most LAs carry out a census well before the term when the funding is due a bit of pressure may bring some changes?
Sorry my mortgage cannot wait to be paid in arrears!!

[Mrsh3103]

There is a briefing session next week about the funded places that I am going to. I will raise this issue there. I think it's completely wrong that it is being paid this way! 2 months in arrears is far too long to wait. I bet none of them would be happy to have to work for 2 months without getting paid!!!

[bunyip]

We're signing forms which aren't even current. The department can't afford to get up-to-date stuff produced cos they're strapped for cash. They're also giving incorrect information to parents cos they can't afford new documentation.

OTOH, at least one of my LAs pays 70% up front at the start of term, then does a reckoning based on actual attendance at the end of term.

I suppose anyone being paid in arrears could tell the LA's Council Tax office they'd like to pay that in arrears whilst waiting for the LA's EY office to pay them, but I somehow doubt it will butter any parsnips.

[Smiley]

I was only paid last week for a 2 year old fortunately I have him for 24 hours each week and his baby brother so at least I was getting payment each week from parents. My LA told me that next year they will work it out on the previous years capacicity so pay in advance. For goodness sake how's that going to work with childminders!
My 2 year old was 3 last week, so in January the rate will go down to £4.05 from £4.89

[Mrsh3103]

Bunyip I might try suggesting that to them at the meeting

[linzi133]

We get paid 50% in week 3 based on our estimated figures that we submit in week 1.
Then we get the remainder in the first week after half term.

Once we've been submitting figures for a year they base the estimated figure on the previous year. I still submit my estimate figure form but if I forget they use the previous years figures.

I have a really good relationship with my lea and I just ring up and they get things sorted pretty quick.

[AliceK]

The funding was mentioned to us at some training I was on recently. Our LA pays £5ph for 2yr olds and they are desperate for CM's to sign up but for 3/4yr olds they only pay £3.11 No-one around here has their hourly rate so low and when this point was raised we were encouraged to take on the 2yr olds and then in effect get rid when they turn 3 . I think that is disgusting and that is one reason why I will not sign up to offer this funding because I could not afford such a drop in hourly rate and my conscience wouldn't let me just terminate once the child turns 3.

xxxxx

[Simona]

The funding was mentioned to us at some training I was on recently. Our LA pays £5ph for 2yr olds and they are desperate for CM's to sign up but for 3/4yr olds they only pay £3.11 No-one around here has their hourly rate so low and when this point was raised we were encouraged to take on the 2yr olds and then in effect get rid when they turn 3 . I think that is disgusting and that is one reason why I will not sign up to offer this funding because I could not afford such a drop in hourly rate and my conscience wouldn't let me just terminate once the child turns 3.

xxxxx

I think we are highlighting, once again, the huge differences in LA administration for the funding

1. The payment in arrears is something that has happened for a long time...it is not ideal but for nurseries and preschools it may be different from CMs due to the larger numbers of children on roll for them....still unacceptable though!
For a CM a delay in payment for one child is a lot of money

2. The rate of funding varies too and we know that...Truss is looking into that and we await to see if her intervention will work.
LAs are not paying what the Under Secretary said they should: £ 5.09 for 2 yo...some pay more some much less...so lets see what 'universal formula' Truss comes up with?!

3. The main problem is the drop in funding when children get to 3...AliceK...yours is the lowest I have heard of so far at £ 3.11?
For this reason many Cms are still unsure about joining the scheme and this will give LAs something to review.

You will have read from the DfE statement that next year, when the next 130,000 2 year olds join the scheme, the system changes to 'payment by result' so I hope this will give them something to think about.

4. We also have the push of 2 year olds going to school...in fact I have read that schools are well placed to offer this and help find a place for the children
Schools I believe get higher funding than providers so I am sure they will be keen to take these children on.

5. If the proposal to get 25 hrs of 'free childcare' goes forward this will be a huge worry for CMs...who can afford to subsidise childcare on that level?

Lots to think about

[samb]

We get 1 payment a term. I find it ok as I have mostly children who pay monthly in advance and so this child actually just provides me with a bonus 3 times a year but I certainly couldn't do it if I didn't have many children or if more were funded. And no certainly not 25 hour a week!

[Mrsh3103]

This leaves me in a really awkward position finacially. One of my spaces is taken up by my ds. 2yo mindee is my only ey child. He is currently here 36 hours a week but his mum is really struggling so as of january he will only be doing 20 hours a week with me. 15 funded and she will pay for the other 5! So for 2 months I will be getting £20 a week for 20 hours work with this child.