Funding Rates

Funding Rates

 

Funding rates that Newcastle City Council will pay to providers for the financial year 1 April 2025 to 31 March 2026

Child age cohort funding stream  Hourly rate April 2025 Annual   Deprivation allocation Explanation
Three-and-four-year-olds £5.26   £805,950
  • Hourly rate for three-and-four-year-olds paid to providers. We increased this by more than the DfE funded us
  • Deprivation is an annual payment to providers based on families in disadvantaged postcodes
Two-year-olds £7.46   £294,050
  • Hourly rate paid out to providers for children on two-year funding
  • Deprivation is an annual payment to providers based on families in disadvantaged postcodes
Under-twos £10.38    
  • Hourly rate paid out to providers for children on under two funding 
EYPP (Early Years Pupil Premium)  £1.00 (£570)  
  • EYPP Hourly Rate paid for families on all three age cohorts who are on low incomes or classed as disadvantaged
DAF (Disability Access Fund)    £938  
  • DAF is an annual payment to providers, payable for any funded children in Spring term 2025 who were in receipt of DLA 

How much individual children can get as an hourly rate funding for their free hours can vary, as some children also receive EYPP and some receive a deprivation payment. So we have shown the minimum hourly rate and the maximum hourly rate below. 

Child age cohort funding stream  Hourly rate April 2025 EYPP hourly rate Deprivation estimated payment  Minimum and maximum hourly rate for child   Explanation
Three-and-four-year-olds £5.26 £1.00 £660.07 (divided by 570 is £1.16 per hour) 

Min: £5.26

Max £7.16
  • Hourly rate for three-and-four-year-olds paid to providers. We increased this by more than the DfE funded us
  • Deprivation is an annual payment to providers based on families in disadvantaged postcodes
Two-year-olds £7.46 £1.00 £466.75 (or £0.82 per hour)

Min: £7.46

Max: £9.28
  • Hourly rate paid out to providers for children on two year funding
  • Deprivation is an annual payment to providers based on families in disadvantaged postcodes
Under-twos £10.38 £1.00 £0.00

Min: £10.38

Max: £11.38
  • Hourly rate paid out to providers for children on under two funding 

 

Information from https://childrenandfamiliesnewcastle.org.uk/
Printed on November 19th 2025
Page last updated
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