How to Invoice Funded Hours: The Childminder's Complete Guide (2026)
Master the January 2026 itemisation mandate. Learn exactly how to present funded hours at £0.00, charge for consumables, and avoid illegal top-up fees.
Invoicing Funded Hours: The 2026 Mandate
Produce correct, compliant funded invoices with zero manual calculation. Under the January 2026 DfE mandate, government-funded early education hours must appear as £0.00 on every parent-facing invoice. KinderStart enforces this requirement automatically and separates private and funded line items on every invoice it generates.
INVOICE: A compliant itemised invoice
The Golden Rule: The £0.00 Requirement
Government-funded early education hours must appear at £0.00 on the parent's invoice. Charging any fee to cover the gap between the funding rate and your private rate is non-compliant.
The Compliance Checklist
| WHAT MUST BE ON THE INVOICE | WHAT MUST NOT BE ON THE INVOICE |
|---|---|
| Funded hours as a separate line at £0.00. | A single "Monthly Fee" with no breakdown. |
| Additional private hours at your agreed rate. | Funding shown as a "Discount" or reduction. |
| Itemised voluntary consumables (e.g. Meals). | Compulsory fees for meals or nappies. |
| The child's eligibility status (Universal/30hr). | Fees of any description applied to funded hours. |
⚠️The Rounding Trap
Precision Math. Never round stretched hours (e.g. 22.35) down to whole numbers. Rounding down to 22 loses the child 1.35 hours per week. This is classified as "top-up fee by stealth" and is non-compliant under 2026 regulations.
Submitting Your LA Claim
Claims to your Local Authority are required each funding period. Follow this workflow to generate a compliant invoice and export your claim data.
- Log funded hours in the child's contract.
- Generate the invoice from the child's profile.
- KinderStart separates private and funded line items automatically.
- Export the CSV for your LA claim.
💡CSV Export
LA Claim Format. KinderStart formats the CSV to the standard LA submission template. Check your LA's portal for any authority-specific column requirements before uploading.
Managing the "Split Week"
When a week spans two months (e.g. Monday 30 March to Sunday 5 April), your weekly funding cap still applies across both months.
- The Look-Back: KinderStart's invoicing engine checks the previous month's sessions. This ensures the child's weekly cap (e.g. 23.75 hours) is not exceeded across the split.
- Automatic Overflow: KinderStart shifts any hours exceeding the cap in the new month to your private rate. Your revenue is protected without manual calculation of overlap hours.
Reconciling "Banked Hours"
When a child attends fewer hours than their weekly stretched allowance, KinderStart banks the remaining time.
- Usage: Apply banked hours to cover ad-hoc extra sessions later in the term.
- Audit Trail: The Funding Tracker in the child's profile maintains a running ledger of minutes attended vs. banked.
- Clawback Protection: When a child leaves your setting, run the Final Reconciliation Report to prove you have not over-claimed from the council.
💡The Grace Period
Eligibility Loss. If a parent loses their eligibility code, funding does not stop instantly. The DfE operates an automatic Grace Period tied to term dates. KinderStart tracks these dates and notifies you when the child's funding is due to revert to private rates.
Pro-Tips for Inspectors
During an inspection, Ofsted will look for transparency.
- Voluntary Consumables: Ensure your contract states that parents can opt out of meals and provide their own.
- The £0.00 Rule: Show the inspector a sample invoice — the £0.00 line item is the fastest proof of financial compliance.
✅Automated Accuracy
The Invoicing Engine. Link your Contract to your Attendance Register and KinderStart generates itemised, compliant invoices in seconds. No manual spreadsheets, and 100% audit-ready output.
Automate your invoicing
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KinderStart strives for accuracy. Competitor features and pricing comparisons are based on publicly available information as of May 2026. Details are subject to change by respective providers.