Terms and conditions of agreement for the provision of early years free entitlement April 2025.
To outline how the Early Years Free Entitlement (‘EYFE’) works and the relationship between Brighton & Hove City Council (‘BHCC’) and the provider named in the Annual Core Offer form (‘Provider’)
This Agreement between BHCC and the Provider consists of these Terms and Conditions and the Annual Core Offer – Providing the Early Years Free Entitlement (EYFE) (the ‘Annual Core Offer form’) as submitted by a new Provider and subsequently submitted by existing providers and as agreed in writing by BHCC.
This Agreement is based on the Department for Education’s (‘DfE’) model agreement template for free early years provision and childcare as amended from time to time. By submitting and signing the Annual Core Offer form, as outlined in clause 1.1, the Provider agrees to abide by these Terms and Conditions and to provide EYFE as set out in their Annual Core Offer form as a condition of receiving EYFE funding from BHCC.
This Agreement applies to:
The following frameworks, legislation and statutory guidance underpin the responsibilities, rights and obligations as set out in this Agreement:
The Provider will not be funded for providing EYFE unless the Annual Core Offer form and supporting documentation has been submitted, by the Provider and agreed in writing by BHCC.
Before agreeing to the Provider’s Annual Core Offer, BHCC will check that the details on the Annual Core Offer form comply with this Agreement.
Where any issues relating to the Provider’s submitted Annual Core Offer form arise, BHCC will raise such issues with the Provider and afford the Provider an opportunity to resolve them, before agreeing to fund the Provider to offer EYFE.
Supporting documents which the Provider must submit as part of their Annual Core Offer form include
Appendix 2 “Information for Families – Good Practice for Providers” may be used as a guide and should result in a smooth approval process.
This Agreement commences on the date that BHCC formally notifies the Provider in writing that their Annual Core Offer and supporting documentation (with any changes as agreed) has been accepted.
For avoidance of doubt, and except in exceptional circumstances, BHCC will not be liable for and will not fund any EYFE provision prior to the date of this approval. It is therefore in the Provider’s interest to ensure that the Annual Core Offer is and remains compliant with the requirements of this Agreement.
This Agreement sets out the requirements and conditions under which BHCC will fund the Provider to deliver EYFE in accordance with the frameworks, legislation and statutory guidance set out in clause 1.3.
Except where otherwise indicated in this Agreement, the Provider is solely and exclusively responsible for delivering EYFE and for compliance with all relevant legislation, statutory guidance and regulations including meeting its obligations and conditions relating to Ofsted registration. The Provider is responsible for obtaining any necessary consents or approvals and meeting the required standards to deliver EYFE.
This Agreement does not create any legal partnership or joint venture between BHCC and the Provider, nor any relationship of principal and agent, nor authorise the Provider to make or enter into any commitments for or on behalf of BHCC. The Provider shall not hold itself out in any manner as legal partner, agent or otherwise authorised to represent BHCC.
BHCC to the fullest extent of the law, accepts no liability for any consequences, whether direct or indirect, arising or resulting from the Provider in its provision of EYFE, the use of EYFE funding or from the termination of the funding under clause 15 of this Agreement.
The Provider is responsible and must indemnify and hold harmless BHCC against all claims, demands, actions, costs, expenses, losses and damages arising in law or otherwise relating to the Provider’s delivery of EYFE. BHCC’s liability under this Agreement is limited to the payment of EYFE funding in accordance with the terms of this Agreement.
Other general legal conditions of this Agreement are set out in the Annex (Standard Council Legal Terms) as attached.
To provide clarity on certain key responsibilities and roles of the parties BHCC 2.1 Must secure an EYFE place for every eligible child in its area.
BHCC must secure an EYFE place for every eligible child in its area.
Will work in partnership with providers to determine and agree how the obligations to deliver EYFE places will best be met including discussion with the Provider in respect of their proposed Annual Core Offer.
Will be clear about its role and the support offered locally to meet the needs of children with special educational needs and disabilities (SEND) as well as its expectations of the Provider as set out in the Special educational needs and disability code of practice: 0 to 25 years January 2015.
Must contribute to safeguarding and promote the welfare of children in the city of Brighton & Hove (the ‘city’).
Will store and manage data in accordance with the Data Protection Act 2018.
The Provider:
To ensure delivery of EYFE in accordance with established and evolving safeguarding standards.
BHCC has overarching responsibility for safeguarding and promoting the welfare of all children and young people in the city and may issue further guidance to providers in the discharge of these duties with which the Provider must comply. It has a number of statutory functions under the Children Act 1989 and the Children Act 2004 which make this clear, and Working together to safeguard children sets these out in detail.
The Provider has a primary duty to ensure that children are kept safe. A lead practitioner must take responsibility for safeguarding and all staff must have training to identify signs of abuse and neglect.
If a professional working with a child has concerns regarding their or their family’s well-being they must refer to Front Door for Families (or such other phone number as notified to the Provider) without delay. The Provider must ensure that their safeguarding policy is comprehensive, up-to-date and complies with all relevant legislation and codes of practice, including Working together to safeguard children and guidance from the Brighton & Hove Safeguarding Children Partnership. The safeguarding policy should be available to parents on the Provider’s website where the Provider has one and otherwise notified in its manuals.
To summarise access to and eligibility for EYFE.
BHCC must ensure that every eligible child can access EYFE no later than the beginning of the term after the child and the parent meets the eligibility criteria for the free entitlements. BHCC will work with the Providers to ensure all children who meet the eligibility criteria are able to take up a free place if their parent wants one.
The Provider should check original copies of documentation for example birth certificate, passport, to confirm that a child has reached the eligible age on initial registration for all free entitlements. The Provider should retain paper or digital copies of documentation to enable BHCC to carry out audits and fraud investigations. Where a provider regains a copy of documentation this must be stored securely and deleted in accordance with Data Protection Act 2018.
DfE have produced a privacy notice template (Privacy Notice: suggested text for pupils) for providers to give to parents to explain how their information will be used. The Provider may use this and amend it as appropriate to its provision.
Details of eligibility for all the entitlements are set out in Appendix 1 “Early Years Free Entitlement (EYFE) Eligibility Information for Providers”.
The Provider must only offer the disadvantaged 2 year old and working parent entitlements to eligible children. If the Provider offers EYFE to any child in error, where a child is not eligible, BHCC will not fund the child and any issues in relation to payment for these sessions must be resolved between the parent and the Provider. BHCC will not take responsibility for resolving such situations.
Any payments made by BHCC to the Provider in respect of any child that is not eligible for EYFE funding must be refunded by the Provider and/or will be offset and recovered as an overpayment from future EYFE payments under pursuant to this Agreement.
To ensure children are able to take up their full entitlement to a free place at times that best support their learning and development and at times which fit the needs of parents to enable them to work or increase their hours of work if they wish to do so.
The Provider should work in partnership with others from all sectors including maintained schools, academies, free schools, private, voluntary and independent providers and childminders to ensure that parents are offered maximum flexibility to access their EYFE and meet their needs and the needs of their child.
Each 15 hour EYFE place should be available to parents for:
Providers are strongly encouraged to offer the full extended/expanded EYFE 30 hours for eligible three and four year olds and from September 2025 all children eligible under the expanded working family criteria for:
The Provider may choose not to offer the full extended 30 hour EYFE but in this case must make it clear to parents that they may not be able to access provision elsewhere to make up the full extended 30 EYFE hours.
The Provider should offer flexible packages of EYFE subject to the following standards which will enable children to access regular, high quality provision, whilst maximising flexibility for parents and ensuring a degree of stability for the Provider:
The Provider should ensure that children are able to take up their EYFE in continuous blocks if they wish to and there should be no artificial breaks in the EYFE hours. For example, EYFE should not be offered 10 am to midday and 1 pm to 3 pm and with the offer of only private paid hours in between these times.
The Provider must ensure that as far as possible, the pattern of entitlement hours is convenient for parents’ working hours. The Provider must further ensure that they do not impose artificial patterns of provision which can prevent parents in receipt of the entitlement from accessing employment, or studying or training for work or using their entitlement.
BHCC may, if it considers appropriate, impose further requirements on the Provider with a view to ensuring that the childcare is provided in a pattern to suit the needs of the parents.
The Provider can deliver EYFE:
Subject to clause 5.6, there is no requirement for the Provider to deliver EYFE on particular days of the week or at particular times of the day.
There is no requirement for the Provider to be open for at least 38 weeks of the year nor for them to offer all the different free entitlements. However, if the Provider is not open for at least 38 weeks of the year, they must advise parents that they may not be able to access additional hours elsewhere to make up their full entitlement.
Where the Provider is open sufficient hours in the week, they are strongly encouraged to offer parents the full annual entitlement to 570/1140 hours.
The Provider cannot compress the EYFE hours. This means that a parent cannot take more than 15 or 30 hours per week over fewer than 38 weeks of the year. However, a parent can choose a provider that is open for fewer than 38 weeks of the year and therefore receive 15 or 30 hours a week during fewer weeks.
The Provider should, where they have capacity, stretch the child’s entitlement so that fewer hours per week can be taken over more weeks of the year. The Provider should set out how many free hours parents are getting per day and per week to ensure that parents understand what free hours they are receiving over the calendar year from when their child first becomes eligible.
The Provider should work with parents to ensure continuity of care for children and effective transitional arrangements to support children’s learning and wellbeing when enabling children to take up their free place at more than one site.
The Provider must make information about their EYFE offer available to prospective parents in a clear, transparent and readily available manner, through publicity and promotional materials, so that parents can make an informed choice of an early years provider which best fits their needs. Such information should include the charging arrangements set out in clause 6 (Charging) of this Agreement. Where the Provider has a website, this information must be shown on the website with clear navigation for direct access.
The Provider should make parents aware of any notice periods if they wish to remove their child from their setting.
The Provider should ensure that notice periods are reasonable for parents if they wish to withdraw their child from EYFE. A reasonable notice period in respect of EYFE places is not more than one month.
To ensure fair charging of parents and full visibility and transparency ensure fair charging of parents and full visibility and transparency.
In accordance with Government guidance, EYFE funding is intended to deliver 15 or 30 hours a week of free, high quality, flexible childcare. The Provider must ensure parents are able to access the entitlements, such as the 15 or 30 hours, free of charge. The Provider must not apply any mandatory charges to parents in relation to the free hours. EYFE funding does not cover the cost of meals and other consumables like nappies or sun cream or additional activities, such as trips, additional hours or additional services.
The Provider can charge parents for the following extras in connection with the free hours but these charges must be voluntary for the parent and not mandatory nor a condition of accessing a free place:
The Provider can also charge parents for any additional, private paid hours according to their usual terms and conditions provided taking up private paid hours is not a condition of accessing a free place.
By January 2026, the costs of chargeable extras should be published on the Provider’s website or where they do not have a website, on BHCC’s Family Services Childcare Directory. These should be clear, up-to-date and easily accessible to parents and prospective parents to ensure all costs are clear to parents upfront and to enable them to make an informed choice of provider. The Provider should set out, for each setting, the amounts charged for all the chargeable hours listed, as well as the pattern of hours that parents can take the entitlements.
The above requirement to publish on a website or on the BHCC Childcare Directory does not apply to childminders and small providers caring for 10 or fewer children at any one time.
To improve transparency, by January 2026, the Provider must itemise invoices and receipts broken down separately into:
The Provider must ensure that parents are able to opt out of paying for chargeable extras and the associated consumable or activity for their child and that participation is on the basis of parental choice and willingness to meet the charges. The Provider must ensure that children who do not participate in optional activities continue to receive provision that complies with the EYFS.
The Provider should be mindful of the impact of additional charges on families, particularly the most disadvantaged. The Provider is responsible for setting a policy on providing parents with options for alternatives to additional charges. This policy must offer reasonable alternatives that allow parents to access the entitlement for free, including allowing parents to supply their own consumables, or waiving the cost of these items.
The Provider must not make chargeable extras a condition of taking up a free place.
The Provider should deliver EYFE consistently so that all children within a setting accessing any of the free entitlements receive the same quality and access to provision, regardless of whether they opt to pay for voluntary hours, voluntary extra services, meals or consumables.
The Provider must not charge parents for the following in connection with the EYFE:
The Provider should not require parents of children in their setting to reserve an EYFE place each term.
The Provider may charge parents a refundable deposit to secure their child’s EYFE place but should refund this in full within a reasonable timescale following the child starting at the setting (but can be retained if the child does not take up the place without sufficient notice). The Provider should make arrangements regarding deposits clear to parents using the methods set out in clause 5 (EYFE Places and Flexibility) of this Agreement. The Provider should not charge non-refundable registration or joining fees for EYFE places.
To facilitate the various partnerships relating to EYFE.
BHCC supports partnership working on 4 levels between:
BHCC encourages partnership working between different types of early years providers across all sectors and encourages providers to offer flexible provision, alongside other providers.
The Provider should work in partnership with parents and other providers to improve provision and outcomes for children in their setting.
Where EYFE is split across different providers the Provider should discuss and work with parents to agree how a child’s overall care will work in practice in order ensure that there is a smooth transition for the child.
To ensure good practice and comply with legislation meet statutory guidance in relation to special educational needs and disabilities (SEND)
The Provider must ensure that they meet the needs of children with SEND, including working with the BHCC’s Inclusion Support Service (BHISS). They must have regard to the SEND code of practice: 0 to 25 years - GOV.UK) and the Equality Act 2010 in the preparation and operation of their policy. The SEND policy should be available to parents on the Provider’s website where the Provider has one and otherwise notified in its manuals
The Provider should refer to Brighton & Hove Early Years Special Educational Needs and Disability (SEND) Guide for Professionals which helps early years settings identify a child’s SEND, outlines the level of support they are expected to offer, and details how to arrange and monitor the support needed.
BHCC has a Special Educational Needs inclusion fund (SENIF) and through this Additional Support Funding (ASF) for inclusion of children with SEND may be available during the time children attend for their EYFE as assessed by Brighton & Hove Inclusion Support Service.
BHCC’s Local Offer details support for children with SEND who live in the city and how parents can access support.
The Provider must be clear, transparent and consistent about the SEND support available at their setting and make information available about the support to enable parents to choose the right setting for their child.
The Provider should collect information from parents about their child’s eligibility for Disability Living Allowance and therefore the Disability Access Fund (DAF) on the EYFE Parental Declaration Form. The DAF is a one-off annual payment for eligible children to help them access their EYFE. If a child changes setting during the academic year the DAF will remain with the original setting.
If a child eligible for DAF is attending more than one setting, BHCC will ask the parent to choose which setting should receive the DAF payment.
To ensure good practice and comply with legislation and statutory guidance in relation to early years and childcare quality o ensure good practice and comply with legislation and statutory guidance in relation to early years and childcare quality.
All children are entitled to take up their EYFE in a high-quality setting. For all state schools, except maintained nursery schools inspected after 2 September 2024, this means those achieving “good” or “better” in the early years provision judgement. For maintained nursery schools this means not being judged to require significant “improvement” or “special measures”.
The Early years foundation stage (EYFS) statutory framework is mandatory for early years providers in England. The EYFS sets the standards that the Provider must meet to ensure that children learn and develop well and are kept healthy and safe.
BHCC will fund EYFE places through one of the following:
BHCC will fund places for eligible disadvantaged 2 year olds at any:
For all state funded schools, except maintained nursery schools, inspected after 2 September 2024, this means those achieving “good” or “better” in the early years provision judgement. For maintained nursery schools this means not being judged to require significant “improvement” or “special measures”.
BHCC will fund places for children eligible for the universal or working parent entitlements at any:
For all state funded schools inspected after 2 September 2024 this means the Provider being judged as not requiring significant “improvement” or “special measures”.
BHCC will fund EYFE places at new providers registered with Ofsted until the Provider’s first full Ofsted inspection judgement is published or at a childminder or childcare provider registered with an agency until the agency’s first full Ofsted inspection judgement is published.
BHCC will fund the Provider with exemptions from the learning and development requirements of the EYFS, if a parent wants their child to take up their EYFE at an exempt provider and the Provider.
BHCC will fund individual children who have exemptions from the learning and development requirements of the EYFS.
BHCC is not required to fund EYFE, if the Provider does not meet the quality standards set out above but may choose to do so (at its sole discretion) to ensure sufficient EYFE places.
BHCC will rely solely on the Ofsted inspection judgement of the Provider or the childminder agency or the childminder agency’s reasonable opinion of the childminder, as the benchmarks of quality.
BHCC will not fund the Provider if it does not actively promote fundamental British values as set out in Section A4.20 of early education and childcare statutory guidance and nor will it the fund the Provider if it promotes views or theories as fact which are contrary to established scientific or historical evidence and explanations.
BHCC will only fund places for eligible disadvantaged 2 year old children in settings rated as “requires improvement” where there is not sufficient accessible “good” or “outstanding” rated provision. For all state funded schools, except maintained nursery schools, inspected after 2 September 2024, this means those achieving “good” or “better” in the early years provision judgement. For maintained nursery schools this means not being judged to require significant “improvement” or “special measures”.
BHCC will fund providers with an Ofsted inspection of ‘met’ until their Ofsted quality judgement is published. BHCC will not fund providers with an Ofsted inspection judgement of ‘not met’.
BHCC will secure alternative provision and terminate funding from the Provider, (other than a local authority maintained school) as soon as is practicable, when Ofsted publish an inspection judgement of the provider of “inadequate” or when Ofsted publish a second consecutive inspection judgement of a childminder agency of “ineffective”. For state funded schools inspected after 2 September 2024, this means an Ofsted outcome of requiring significant “improvement” or “special measures”.
Following a second consecutive ineffective inspection judgement BHCC will continue to fund the childminder agency’s providers if the childminder agency has assessed them as being of acceptable quality and Ofsted has not identified any concerns about the childminder agency’s assessment arrangements.
When terminating funding, BHCC will take into account the continuity of care for children already receiving EYFE at the Provider’s setting or with an agency registered childminder or childcare provider, and Ofsted monitoring information about the Provider or agency.
If funding is terminated, the Provider will not be able to offer EYFE again until it has a new Ofsted inspection judgement published which is not inadequate. In this situation, the Provider must let any parent who has their child on the Provider’s waiting list know that they will not be able to take their EYFE at the setting.
BHCC will not terminate funding from the Provider or childminder agency until their Ofsted inspection judgement is published.
BHCC will not fund childminders or childcare providers registered with a childminder agency where the agency has indicated that the childminder or childcare provider is not of the appropriate quality unless it is necessary to do so to ensure sufficiency of accessible places or support parental choice. BHCC will also consider any information provided by a childminder agency about the childminder or childcare provider registered with them and the childminder’s setting.
BHCC will consider any information published by Ofsted about the Provider or childminder agency including the recent history of childcare provision by the Provider or childcare provision at the address. This may include for example, where BHCC has concerns that a provider judged as inadequate by Ofsted, may have re-registered their setting with Ofsted to avoid making the quality improvements identified by Ofsted. BHCC reserves the right to refuse, suspend or terminate EYFE funding based on the information published by Ofsted.
To provide clear process and information to providers on EYFE funding and payments and also supports a diverse range of providers to delivery EYFE on a sustainable basis and encourages existing providers to expand and new providers to enter the childcare market.
BHCC will use a locally determined and transparent formulae to set the funding rates for all provider types and will consult providers and the council’s schools’ forum (as set out in the early years funding operational guidance) on proposed changes from the formulae from the previous financial year.
BHCC funds EYFE in accordance with the requirements and funding rates set out on GOV.UK where the current national rates can be found as updated from time to time.
The Provider will be paid for provision of EYFE once their Annual Core Offer has been accepted by BHCC as outlined in clause 1 (Introduction) of this Agreement.
The Provider must ensure that parents complete and sign the Early Years Free Entitlement (EYFE) Parental Declaration Form set out in Appendix 3, confirming the hours and sessions of EYFE their child has received.
BHCC will not pay EYFE for children who are ineligible for provision.
Find BHCC’s local funding formula for the current financial year.
Information on funding rates is sent to providers by 28 February each year. The funding formula for three and four year olds includes a deprivation supplement for eligible children. BHCC does not offer providers an ad hoc deprivation supplement checking service for individual children.
BHCC will issue each provider an indicative budget, at the beginning of the financial year which broadly reflects anticipated participation. Individual budgets can be adjusted within the financial year to reflect participation based on estimated and actual (headcount) EYFE hours submitted by providers via the online provider portal.
Payment of EYFE funding by BHCC to providers is currently made in 2 instalments each term. Find information on how funding is paid.
75% of EYFE payments to providers are made at the start of each term based upon an estimate of hours submitted via the provider portal. The balancing payment of 25% is made on completion of the headcount when actual hours are submitted via the provider portal. BHCC will recover any overpayments for one or more of the entitlements made at the start of the term from the balance of any of the other entitlements before making the balancing payment. Further EYFE payments will not be made until any overpayments have been offset or otherwise recovered.
Where the Provider has an outstanding debt due to BHCC and is in a recovery position (i.e. where the Provider has been overpaid in the previous period), for either EYFE or ASF payments, BHCC will inform the Provider as soon as possible as to how the outstanding debt will be recovered and will liaise with its own corporate collections team.
If BHCC is notified by its corporate collections team of the Provider’s continued outstanding debt relating to recovery of EYFE funding, any funding claims from the Provider (estimate or balancing) will be suspended until the outstanding debt is cleared.
BHCC will only pay funding for the working parent entitlements from the start of the term after both the following conditions are satisfied:
If a 3 or 4 year old child is taking up their universal entitlement and a parent becomes eligible for the extended working parent entitlement part way through a term, the Provider can start claiming funding for extended working parent entitlement hours the term following the date on which the parent received their verified code.
The Provider must use the online provider portal to provide BHCC with information regarding children’s attendance and EYFE hours and guidance on this which is sent to providers each term.
The Provider can only claim funding when the child attends its setting; EYFE will not be paid by BHCC for any notice periods if a child has left a setting.
Where a child accesses their EYFE at more than one provider or at more than one (either term-time, or ‘stretched’ or a mixture of both) funding must be claimed by each provider on a term-time basis and ‘self-stretched’ if required.
BHCC may, at its sole discretion, suspend EYFE payments to the Provider where a potentially serious compliance issue appears relating to this Agreement and will follow the steps set out in clause 15 (Termination of Agreement and Termination of EYFE Funding).
BHCC reserves the right, on reasonable notice, to change the payment arrangements under this Agreement, for example, moving to monthly payments or some other alternative arrangement.
The Provider must notify BHCC as soon as possible, via the online provider portal ‘adjustments’ section, of any change to a child’s EYFE attendance, for example, a child joining, leaving or changing hours.
The Provider will receive adjustment funding for any EYFE change of attendance only where this has been notified to BHCC during the term in which the change of attendance takes place.
The Provider must notify BHCC, in writing, if a child is absent for an extended period of time of more than three consecutive weeks. EYFE funding will not be terminated, if in BHCC’s opinion (whose decision shall be final), there is a legitimate reason for the child’s absence and they are expected to return to the setting. BHCC will consider each absence on a case by case basis. An example of a legitimate reason may be where a child is unwell and has been in hospital for a lengthy stay. An example of a non-legitimate reason would be where a child has been absent due to an extended holiday.
If a child’s attendance is poor, the Provider must keep a record of reasons for children’s absence, for example, a verbal or written statement from the parent/carer) which may be requested as part of the audit to support an EYFE claim.
To ensure timely provision of data for DfE purposes.
The Provider is required to submit data to BHCC as requested. This includes, but is not limited to, termly headcount information, census information, information as part of BHCC’s Childcare Sufficiency Assessment and any other data in relation to early years and childcare provision.
The Provider must submit termly headcount information regarding actual attendance to support payment and delivery of EYFE. Find headcount dates on The Early Years Free Entitlements (EYFE).
The Provider must make their termly headcount submission via the online provider portal following guidance from BHCC. Providers should claim for eligible children attending during headcount week each term.
BHCC reports annually to the DfE regarding take up of EYFE in the January census. The Provider must submit timely and accurate headcount and census returns, including all required information about their setting.
The Provider must comply with all BHCC requirements and deadlines for information and data provision. Failure to do so may result in inaccurate, delayed or suspended EYFE funding.
The Provider should maintain accurate financial and non-financial records relating to EYFE provision and should give BHCC access to these upon reasonable notice.
To ensure compliance with EYFE core delivery requirements.
The Provider must maintain all attendance and finance records for a period of 6 years.
In the event of an audit by BHCC the Provider must have copies of the following documents for the relevant period
The Provider must follow all planning guidance and have appropriate planning permission in place.
The Provider must comply with all health and safety and environmental legislation and government guidance although it is not BHCC’s responsibility to monitor compliance.
The Provider must give BHCC and parents at least one month’s notice in writing if they decide to stop offering EYFE.
If the Provider closes part way through a funding period the Provider must pay back unused EYFE funding to enable children to access their EYFE elsewhere.
Failure to pay BHCC any monies owed within given deadlines will result in BHCC implementing its corporate debt recovery policy.
To provide a clear and proportionate process for the resolution of issues of non-compliance with the terms of this Agreement.
Where any compliance issues arise relating to this Agreement, BHCC will follow the processes with the Provider as set out below.
BHCC will set out the issue of concern and will ask for a response from the Provider.
The Provider should make a senior staff member available who is able to communicate with BHCC by email, telephone and meeting as needed.
BHCC and the Provider shall work together to consider, agree and record specific actions or changes to the Provider’s policies, procedures or practices.
Step One should be concluded within 4 weeks of the issue being raised by BHCC unless a different timescale is agreed in writing.
For serious, urgent or repeated issues of compliance or where the measures at Step One have not been resolved within the timescale indicated, BHCC may serve the Provider with a notice issuing or requesting a Remedial Plan from the Provider.
The notice will set out the details of the compliance issue reiterating what the Provider needs to rectify and give a date by which a Remedial Plan should be submitted to BHCC.
The Remedial Plan should address the issues set out in the notice along with the actions that will be taken to resolve the compliance issue, along with any documentary evidence.
BHCC may request changes to the Remedial Plan prior to accepting it.
Step Three – Termination of this Agreement for Compliance Issues
If the Remedial Plan from Step 2 has not been submitted and/or agreed within a reasonable timeframe as notified by BHCC, or where the Remedial Plan has not been implemented as agreed, or for persistent compliance issues, BHCC may issue a Notice to Terminate this Agreement. The Notice will set out the basis for the termination and the date on which the Agreements ends.
BHCC may in the Notice to Terminate and in its sole discretion allow the Provider one final opportunity to rectify the compliance issue within a strict and short timeframe.
BHCC may also issue a Notice to Terminate this Agreement immediately where the compliance issue represents a fundamental breach of this Agreement (including but not limited to the undertakings given in the Annex Clause 8), EYFE Government legislation or guidance or any other applicable law, or where the compliance issue(s) result or may result in material damage to the reputation of the Provider, BHCC or of EYFE provision.
To set out processes for termination of this Agreement and EYFE funding.
Suspension of the Provider’s registration by Ofsted or a breach of statutory requirements or safeguarding issues may result in the termination of this Agreement and termination of EYFE funding.
BHCC may terminate EYFE funding where there are concerns about the Provider’s financial viability. It also reserves the right to make EYFE payments in arrears rather than in advance, or in monthly instalments without notice to the Provider.
EYFE funding may also be terminated as set out in this clause 15.
BHCC may refuse to fund a provider if there are reasonable grounds to believe that they will not be able to meet all the terms and conditions of providing EYFE as set out in this Agreement and in Section A3 of Early education and childcare statutory guidance from 1 April 2025.
BHCC will not waive the right to act to terminate this Agreement or terminate EYFE funding if it does not act immediately.
If funding is terminated, the name of the provider will be removed from the Childcare Directory of childcare providers offering EYFE in the city.
If funding is terminated from a provider but the Provider chooses to continue to offer free places to children they must make it clear in writing to parents that their child is not receiving EYFE.
Where BHCC terminates this Agreement, BHCC will not be required to make any further payments until the costs and amounts owing to and from the Provider have been calculated. The Provider will be entitled to be paid any balance owing following the final account calculation.
On termination of this Agreement, the Provider shall be required to cooperate fully with the transfer of responsibilities relating to children in receipt of EYFE as well as BHCC as set out in this Agreement.
BHCC may (at its discretion) suspend and or delay the EYFE funding pending investigation into compliance concerns with this Agreement. Examples of when this may occur include but are not limited to, for example, where:
To provide a clear process for appeal against decisions not to fund a provider or to terminate funding made under this Agreement
A Provider may not be approved to offer EYFE, the Agreement may be terminated or a Provider may have their funding terminated as set out in this Agreement. The Provider may appeal against such decisions in the manner set out in clause 17 (complaints process).
The Provider should write to the Director of Education and Learning (or such other person as notified by BHCC) at eyc@brighton-hove.gov.uk within 10 working days of the date of BHCC’s decision rejecting their application for EYFE funding, or terminating their EYFE funding, setting out the grounds for their appeal and including supporting documentation. Appeals received after ten working days will only be considered where the council considers, at its sole discretion, good reason has been demonstrated for the delay.
To ensure that parents have a clear and transparent process to raise a complaint with a provider and to outline how providers can complain to BHCC.
The Provider should ensure it has a complaints procedure in place for parents who are not satisfied that their child has received their EYFE in the correct way, as set out in this Agreement. The Provider’s complaints process should be clearly published and accessible for parents.
The complaints procedure should indicate that if the matter has not been resolved between the Provider and the parent, the parent should contact BHCC’s Family Hubs (or such other email address as notified by the council) which will investigate the issue with the support of the early years team.
Providers who have a complaint about the way in which BHCC manages this Agreement should contact the Childcare Strategy Manager at eyc@brighton-hove.gov.uk (or such other email address as notified by the council).
Providers may complain about the manner in which this Agreement is being administered but not the contents or the requirements of this Agreement. Decisions made to decline or terminate EYFE funding may be appealed against as set out in this Agreement and are not for this reason dealt with through BHCC’s complaints procedure. A Provider who incorrectly appeals or complains will be appropriately signposted as set out in this clause.
If the parent or the Provider feel that they have not received a satisfactory response to their complaint and wish to take the matter further, a formal complaint may be submitted through BHCC’s complaints procedure.
If a parent or the Provider is not satisfied with the way in which their complaint has been dealt with by BHCC, they can complain to the Local Government Ombudsman. Such complaints will only be considered when BHCC’s complaints procedure has been exhausted.
This Agreement will be reviewed by the council on a regular basis and updated as required in accordance with changes to government guidance and relevant legislation. Any update to the Agreement will be notified to the Provider.
All clauses numbering in this Annex shall be referred to as Annex Clause [Number].
The Provider shall acknowledge the EYFE Funding through BHCC in its annual report and accounts.
The Provider agrees to participate in and co-operate with any activities relating to the EYFE that may be instigated and/or organised by BHCC.
BHCC and the Provider agree that all rights, title and interest in or to any information, data, reports, documents, procedures, forecasts, technology, know-how and any other Intellectual Property Rights whatsoever owned by either BHCC or the Provider before the commencement date or developed by either party during the funding period, shall remain the property of that party.
Where BHCC has provided the Provider with any of its Intellectual Property Rights for use in connection with EYFE (including without limitation its name and logo), the Provider shall, on termination of this Agreement, cease to use such Intellectual Property Rights immediately and shall either return or destroy such Intellectual Property Rights as requested by BHCC.
Subject to Annex Clause 4 (Freedom of Information), each party shall during the term of this Agreement and thereafter keep secret and confidential all Intellectual Property Rights or Know-How or other business, technical or commercial information disclosed to it as a result of the Agreement and shall not disclose the same to any person save to the extent necessary to perform its obligations in accordance with the terms of this Agreement or save as expressly authorised in writing by the other party.
The obligation of confidentiality contained in this clause shall not apply or shall cease to apply to any Intellectual Property Rights, Know-How or other business, technical or commercial information which:
The Provider acknowledges that BHCC is subject to the requirements of the Freedom of Information Act 2000 (FOIA) and the Environmental Information Regulations 2004.
BHCC shall be responsible for determining at its absolute discretion whether information provided under this Agreement:
The Provider shall ensure that all information produced in the course of the Agreement or relating to the Agreement is retained for disclosure and shall permit BHCC to inspect such records as requested from time to time.
The Provider shall (and shall procure that any of its staff involved in connection with the activities under the Agreement shall) comply with any notification requirements under the Data Protection Act 2018 (DPA) and both Parties will duly observe all their obligations under the DPA, which arise in connection with this Agreement.
The Provider shall ensure that it has in place appropriate technical and organisational measures to ensure the security of personal data as required under the Seventh Data Protection Principle in Schedule 1 to the DPA.
The Provider agrees to indemnify BHCC against all costs that BHCC incurs as a consequence of the Providers failure to comply with this Annex Clause 5.
Under the Equality Act 2010 (the Act), BHCC, in carrying out its functions has a duty to pay due regard to the need to eliminate discrimination, harassment and victimisation, promote equality of opportunity and good relations between those who share a particular protected characteristic and those who do not.
The Provider shall not discriminate contrary to the Act (which term includes harassment and victimisation) directly or indirectly, against any person on grounds of disability, gender reassignment, marriage/civil partnership, pregnancy/maternity, sex and sexual orientation, race, religion/belief and age.
The Provider shall:
The Provider represents, undertakes and agrees that it:
Except where otherwise specified, the terms of this Agreement shall apply from the date of this Agreement until expiry.
Any obligations under this Agreement that remain unfulfilled following the expiry or termination of the Agreement shall survive such expiry or termination and continue in full force and effect until they have been fulfilled.
The Provider may not, without the prior written consent of BHCC, assign, transfer, sub-contract, or in any other way make over to any third party the benefit and/or the burden of this Agreement.
No failure or delay by either party to exercise any right or remedy under this Agreement shall be construed as a waiver of any other right or remedy.
This Agreement does not and is not intended to confer any contractual benefit on any person pursuant to the terms of the Contracts (Rights of Third Parties) Act 1999.
This Agreement constitutes the entire agreement and understanding of the parties in connection with its subject matter and supersedes all prior representations, communications, negotiations and understandings concerning the subject matter of this Agreement.
This Agreement shall be governed by and construed in accordance with the law of England and the parties irrevocably submit to the exclusive jurisdiction of the English courts.
In this Agreement, reference to any statutory provision, enactment, order, regulation of other similar instrument shall be construed as a reference to the statutory provision, enactment, order, regulation or instrument (including any EU instrument) as amended, replaced, consolidated or re-enacted from time to time and shall (unless the reference expressly states otherwise) include any orders, regulations, codes of practice, instruments or other subordinate legislation made under it.
The Provider should check original copies of documentation to confirm a child has reached the relevant age on initial registration for all Entitlements. The provider can retain paper or digital copies of documentation to enable the local authority to carry out audits and fraud investigations. Where a provider retains a copy of documentation this must be stored securely and deleted when there is no longer a good reason to keep the data
All 3 and 4 year olds are eligible for 15 EYFE hours a week for 38 weeks of the year. Children may stretch their entitlement over more than 38 weeks and up to 52 weeks of the year. This means taking fewer hours per week, subject to a maximum of 570 hours a year.
Children are eligible for EFYE until they reach compulsory school age (the beginning of the term following their fifth birthday).
All 3 and 4 year olds living in England are entitled to the universal entitlement including those moving to England from another country who can access their EYFE on the same basis as any other 3 and 4 year old child in the city .
Three year olds can start their universal EYFE from the term after their third birthday and the relevant dates are as follows:
| Child’s third birthday is between | They can start their UNIVERSAL EYFE from | Term |
|---|---|---|
| 1 January to 31 March | The beginning of term on or after 1 April | Summer |
| 1 April to 31 August | The beginning of term on or after 1 September | Autumn |
| 1 September to 31 December | The beginning of term on or after 1 January | Spring |
A child will be entitled to EYFE from the term after both of the following conditions are satisfied the:
Children may stretch their entitlement over more than 38 weeks and up to 52 weeks of the year. This means taking fewer hours per week, subject to a maximum of 570 hours a year.
Eligible disadvantaged two year olds can start their EYFE from the term after their second birthday:
| Child’s second birthday is between | Disadvantaged two year funded EYFE from (with an LA issued URN) | Term |
|---|---|---|
| 1 January to 31 March | The beginning of term on or after 1 April | Summer |
| 1 April to 31 August | The beginning of term on or after 1 September | Autumn |
| 1 September to 31 December | The beginning of term on or after 1 January | Spring |
Parents should be directed to contact BHCC Family Hubs to check eligibility and apply to BHCC from the beginning of the term during which their child turns 2 years old. Find eligibility criteria and information regarding how to apply.
BHCC will send eligible parents a letter confirming their eligibility with a unique reference number (their ‘E number’). The date indicated on the eligibility letter is the date from which the child can start their EYFE. The Provider should obtain a copy of this letter from the parent and retain a copy for its records.
Disadvantaged 2 -year-olds are eligible for their EYFE from the date indicated on the eligibility letter. If the child is already attending the early years setting prior to the parent receiving their eligibility letter, the EYFE payment to the Provider will not be backdated by BHCC. The Provider must make it clear to parents that they are liable for any fees until the start date on their eligibility letter from BHCC.
The Provider should offer places to disadvantaged two-year-olds on the understanding that the child remains eligible until they become eligible for the universal EYFE for 3 and 4-olds, even if the child or parent ceases to meet the eligibility criteria during this time.
The Provider may be aware of some families who meet the criteria for both the disadvantaged 2-year-old entitlement and the working parent entitlement. Families should be encouraged to apply locally through BHCC for the disadvantaged 2-year-old funding in the first instance – the benefits of this include: no termly deadlines; a possible immediate start to their EYFE place once eligibility has been confirmed, and ongoing eligibility even if circumstances change.
Where parents meet the eligibility criteria for both the disadvantaged two-year-old entitlement and the working parent entitlement the first 15 hours will be funded under the disadvantaged entitlement and the next 15 hours under the working parent entitlement.
A child is eligible for the entitlement for eligible working parents provided the eligibility criteria set out in the legal annex in Part E to the statutory guidance. Entitlements and information showing how parents can check and apply are available on the government’s online Childcare Choices website which the Provider should use to guide parents. Information can also be found on the BHCC webpage Childcare and Childcare Support.
Parents must apply for the working parent entitlements through the government’s online Childcare Service. Eligibility is determined by HMRC. The only exception is children in foster care.
The child will need to attain the relevant age as set out in the table below and have a positive determination of eligibility from HMRC.
From the effective date as set out in the table below, a child will be entitled to the specified free hours as set out in the table, the term after both of the following conditions are satisfied the:
| Effective date | Relevant age | Free hours per annum | Examples of when a child can take up their free place |
|---|---|---|---|
| Since 1 September 2024 | 9 months old and above | 570 hours |
The term after the child turns 9 months old:
|
| From 1 September 2025 | 9 months old and above | 1,140 hours |
The term after the child turns 9 months old:
|
Alongside the unique 11 digit HMRC eligibility code and original copies of documentation, the Provider must obtain written consent from or on behalf of, the parent to be able to receive confirmation and future notifications from BHCC of the validity of the parent’s eligibility code.
Once the Provider has received written consent from the parent, they should verify the eligibility code in the “Eligibility Checker” in their on-line provider portal. This will confirm the validity (or otherwise) of codes to allow providers to offer EYFE places for eligible children aged nine months and above.
If a parent has a child who will be 3 before the start of the following term but forgets to apply, they will have to wait until the start of the next term to claim their extended entitlement. BHCC cannot backdate funding claims where a parent has not applied for their code in time.
Children in foster care who have attained the relevant age are also eligible for the working parent entitlements provided the foster carer is in paid work outside their fostering role, does not expect their adjusted net income to exceed £100,000 and BHCC confirms it is satisfied that the foster parent engaging in paid work is consistent with the child’s care plan. The foster parent does not have to meet the minimum income requirement.(currently the equivalent of 16 hours at the national minimum wage).
Find more information is available here Free childcare for eligible working parents for children aged from 9 months and above in foster care and on the BHCC Family Services Directory
BHCC will complete audit checks to review the validity of HMRC eligibility codes for children who qualify for the working parent entitlement at six fixed points in the year, at half-term and at the end of term across the year. BHCC will notify the Provider where a parent is no longer eligible and inform them of the grace period (as referred to below) end date. Providers can view this information in their provider portal and can check, at any time, the validity of any code.
BHCC will also check eligibility, via the Eligibility Checking Service (ECS) whether codes given to BHCC providers have been checked by other local authorities and liaise to reduce the risk of a parent accessing more than the maximum entitlement per year.
The relevant dates (in relation to the age criterion) are as follows:
A child enters the grace period when their parent(s) cease to meet the eligibility criteria for the working parent entitlements upon reconfirmation, as determined by HMRC or a First Tier Tribunal in the case of an appeal.
BHCC will access information about whether a child has ceased to meet the eligibility criteria and entered the grace period via the ECS and will inform the Provider. The grace period end date is automatically applied to eligibility codes.
BHCC will continue to fund a place for a child who enters the grace period as set out in current statutory guidance.
BHCC will notify the Provider where a parent has fallen out of eligibility and inform them of the grace period end date, following the audit check dates as set out above. It is good practice for the Provider to notify parents within five working days if they have fallen out of eligibility.
Children should not start a new working parent entitlement place at a provider during their grace period. This includes where a parent falls into their grace period before the child has a place, and where a parent falls into their grace period while their child is in a place and the parent seeks to move the child to a different provider.
There are exceptional circumstances (for example, the Provider closes or receives an Ofsted inspection judgement of inadequate and BHCC terminates funding, or the parent moves home as a result of domestic abuse or other emergency situation) where a child may be able to change providers during their grace period, as outlined in. BHCC may in those exceptional circumstances exercise its discretion by providing confirmation in a letter to the parent that they may change provider during the grace period which should be presented to the chosen new provider.
If a 3 or 4 year old ceases to be eligible for the working parent entitlement and the grace period has expired, they can continue to take up their 15 hour universal entitlement. If the parent has been taking up EYFE hours at more than one setting, BHCC will continue to fund 15 hours at the provider setting of the parent’s choice.
If a 2 year old ceases to be eligible for the working parent entitlement, the Provider should encourage the parent to check for eligibility for the disadvantaged 2 year old entitlement (see above).
The provider should share the following information and links with families about all the Early Years Free Entitlements and other forms of childcare support:
Information about early years free entitlement (EYFE) should be clearly signposted from your home page either in a separate EYFE tab or downloadable as a separate EYFE information document.
EYFE information may also be included in your “terms and conditions” or “parental agreement” but should also be available separately to parents and prospective parents visiting your website.
If you do not have a website this information should be available to parents and prospective parents by email on a request.
This should include (but without limitation):
Clear information about:
Providers can use the DfE’s chargeable extras templated. All invoices should be clear and itemised and include:
Invoices should also include:
Download the declaration form from the EYFE provider agreement PDF.