Funded early learning and childcare 2025-2026: guidance for setting sustainable rates

Section 8: Local authority funded provider support package

84. Along with the sustainable rate, local authorities provide a range of benefits to funded providers. Additional benefits, over and above the funded rate, should be clearly outlined at the time of application to become a funded provider.

85. As set out in Section 3 of the Funding Follows the Child Operating Guidance, the type of support provided by local authorities to funded providers could include (but is not limited to):

• training programme resources;
• support for workforce planning;
• marketing and recruitment support;
• funding for staff to undertake relevant qualifications;
• grant funding for specific resources;
• buildings support; and
• regular contact through local authority ELC meetings.

86. The range of benefits that a funded provider receives will be different depending on the type of provision, location of the provider and needs of the children attending. The Operating Guidance states that:

“it is for local authorities to decide the best package to ensure high quality ELC provision is offered to children and families, based on their own local circumstances. However, local authorities should ensure that settings have a clear and consistent understanding of the level of support they can expect.”

87. A local authority should outline the support package available, and its monetary value (where available), to funded providers, including at the time of application. Where this support package has been considered in the sustainable rates setting process, this should also be clearly outlined to funded providers. This support package is in addition to the sustainable rate set by the local authority. The local authority should clarify what elements of the support package are guaranteed and which are optional or dependent on need or availability. Mandatory, statutory requirements and costs should not be included in this.

88. This will ensure transparency around both the sustainable rate and support package to funded providers.