Early education funding is available for:

  • Eligible children aged 9 months to 3 years old from working families, for 15 hours a week for 38 weeks (570 hours per year) increasing to 30 hours a week from September 2025.
  • All 3 and 4-year-old children, for 15 hours a week for 38 weeks (570 hours per year), this is called the Universal Entitlement.
  • Eligible 3 and 4-year-old children from working families, for an additional 15 hours a week, (adding up to 30 hours per week / 1,140 hours per year, including the Universal Entitlement)
  • Eligible 2-year-old children whose families are receiving additional forms of government support, for 15 hours a week for 38 weeks (570 hours per year)

To deliver any or all the funded entitlements, a provider must be approved and be part of Merton's Directory of Providers of Funded Early Education.

For more information about the early education entitlement and the eligibility criteria visit www.childcarechoices.gov.uk

How do I become an approved provider and apply for funding?

Step one

Read the Funded Early Education Guidance (April 2025) which outlines how Merton Council works with funded providers and details the funding process and key funding information. Providers must meet the quality conditions detailed in the guidance to be able to deliver funded early education. You will need access to a computer or device with a web browser and IT skills to enable you to manage your funding claims on the Early Years Provider Hub.

To begin your application, please send an expression of interest by email to ey.funding@merton.gov.uk

Step two

You will receive an email with a choice of dates and times for an appointment with a member of the funding team.

For nurseries and preschools, we recommend that both the business owner (registered person) and the person who will be managing funding claims attend this appointment.

Appointments are via telephone and take around 30-45 minutes. They are an opportunity to talk through the funding guidance and process, ask any questions that you may have and for us to support you in becoming a funded provider.

Step three

Once you have booked an appointment you will be emailed:

  • Funded Early Education Guidance (April 2025) this outlines the terms and conditions of funding and forms the contract between you and the local authority
  • a Bank Details form to enable funding payments to be made directly to your account

Please read through these documents in preparation for your Appointment and complete and return the bank details form to ey.funding@merton.gov.uk

Step four

Following your appointment, an account will be set up for you on the Early Years Provider Hub and you will be emailed instructions for how to log in and complete your Funding Agreement.

Once your agreement is submitted and approved, you will receive confirmation that you may begin offering funding places and your setting will be added to the Merton Directory of Funded Providers.

Details of your setting and the funded entitlements you offer will be published on the Family Services Directory website to assist parents who are looking for a funded early education place.

If you have any questions about joining the Merton Directory of Providers of Funded Early Education, please email providers@merton.gov.uk

Early Years Provider (EYP) Hub

All providers who have joined the Directory of Providers of Funded Early Education have an account with the Merton EYP Hub which they use to manage their funding claims. Once you have joined the Directory, you will be sent login details and user guides.

Log in to the EYP Hub

Merton EYP Hub User Guide - Validating eligibility codes

Supporting documents

A Parent Funding Form must be completed with each parent for each funding period. Please ensure you keep the form at your setting and give a copy to the parent.

If you need to send any child or family information to us via email, please request an encrypted email link to ensure that the information can be sent securely.

Headcount

Headcount is the time when providers submit their funding claim for children taking up a funded place during that funding period.

Headcount weeks for 2025/26 are:

  • 12 May to 16 May 2025
  • 29 Sep to 3 Oct 2025
  • 12 Jan to 16 Jan 2026

Late starters

Late Starters are children who start a funded place after Headcount week and before the start of a new funding period

Funding timetable 2025 to 2026

Funding PeriodPeriod 1 - Summer
1/4/25 - 31/8/25
Period 2 -Autumn
1/9/25 - 31/12/25
Period 3 - Spring
1/1/26 - 31/3/26
Phase 1 Estimates3 Mar - 16 Mar 20255 Aug - 17 Aug 20251 Dec - 14 Dec 2025
Interim Payment(s)*10 April 2025
9 May 2025
10 Sept 202512 Jan 2026

Phase 2

Headcount Actuals

12 May - 16 May 202529 Sept - 3 Oct 202512 Jan - 16 Jan 2026
Interim Payment(s)*10 June 202510 October 2025
10 November 2025
10 Feb 2026
Headcount Payment*10 July 202510 Dec 202510 Mar 2026

Phase 3

Late Starter Adjustments

19 May - 6 July 20256 Oct – 30 Nov 202519 Jan - 8 Mar 2026
Late Starter Adjustments Payment / Account Close*31 August 202531 December 202531 March 2026

Payment dates: providers will receive any due payment by the relevant published payment date. If an expected payment is not received by that date, the provider should email ey.funding@merton.gov.uk

These funding timescales and dates are also provided on page 27 of the Funded Early Education Guidance (April 2025)

Useful information

Useful information for schools