Fees & Funding from September
Updates to fees & removal of the sliding scale
From September, we’re removing our sliding scale and replacing this with a flat hourly rate for any hours purchased above your funding entitlement. Feedback from families suggested that the sliding scale was confusing and not transparent. This new model is simpler and will mean our fees are cheaper for all families in receipt of funding. Our rates for all additional hours above funding entitlements from September will be:
● Babies (6 months - 2 years): £11.10 per hour
● Toddlers (24–36 months): £9.60 per hour
● Preschool (3-5 years): £8.50 per hour
Changes to funded hours
From September, we are changing how many funded hours we claim per child per week. As an all-year-round nursery, we previously stretched funding using Bristol City Council’s definition of 47.5 weeks for all-year-round provision. As we are open for 51 weeks of the year, this meant that there were three weeks of the year when children were not funded, and we absorbed this cost.
With the increased funding entitlements and funding shortfalls, we’re no longer able to do this. This means:
● If you’re in receipt of working family funding (30 hours per week), we’ll be claiming 22 hours per week.
● If you’re in receipt of eligible two year old (disadvantaged) or universal three and four year old funding (15 hours per week), we’ll be claiming 11 hours per week.
If you purchase additional hours in addition to your funding entitlements, these will be charged at our new hourly rate.
New funding entitlements and sustainability
While the new funding entitlements are positive for families, they pose significant challenges for nurseries. Long-term underfunding persists, with current funding rates received by settings like Raised In falling over £2 per child per hour short of actual costs. Funding hasn't kept pace with inflation or rising expenses, and the 2025–26 increase — averaging below 2.7% — lags behind wage growth and ignores key cost pressures like Employer's National Insurance increases.
As a result, it’s no longer sustainable for us to offer the early years funding entitlements without a consumables charge. The good news is that all families receiving funding will see their bill reduced from September, thanks to our overall fee structure update.
Funded Hours Sessions
From September, we’re changing when families can access funded hours.
● If you’re claiming working family funding, 20 hours of your allocation can be taken whenever you wish, in line with our standard session times (equivalent to two full days, four half days or a mixture of full and half days).
○ 2 hours can then be taken between 11 am-1 pm OR 1-3 pm on any day of the week. If you require a longer session, you’re welcome to purchase additional hours at our hourly rate to make up a full half-day session or more if needed.
● For children starting with us from September and eligible for two year old (disadvantaged) or universal 3 and 4 year old funding only, these hours will only be available on a Monday or Friday.
○ 10 hours will need to be claimed in two half day sessions of 5 hours or one full day session of 10 hours.
○ The remaining 1 hour can then be used at either 8-9 am or 5-6 pm.
Wherever possible, we’ll do all we can to honour all existing booking patterns for children funded by either of these routes.
How We Allocate Funded Hours
If your child is eligible for government funding, we will always apply your funded hours starting with a Monday or Friday (if your child attends on those days). Any remaining funded hours will then be used on other days, starting with Tuesday.
For example:
If your child attends nursery on Monday, Tuesday, and Wednesday mornings and you receive 22 hours of Working Family Funding, we will allocate the hours as follows:
Monday: 10 funded hours
Tuesday: 10 funded hours
Wednesday: 2 funded hours between 11 am–1 pm
Please speak to the Admissions Team if this impacts you, to discuss your options
Changes to booking patterns
To adhere to updated government guidance, from September, children only accessing funded hours will no longer have a minimum booking pattern. However, current research shows that attending nursery for at least 20 hours per week is the best option for child welfare and development, ensuring children settle well at nursery and can gain the full benefit from our curriculum. We encourage families to access 20 hours or more wherever possible.
If you’re in receipt of working family funding and wish to use 11 hours or less of this at Raised In, you’ll need to access your funded hours on a Monday or Friday, subject to availability.
If you wish to use your total funded hours or less, we’ll only ask you to pay the consumables charge and enhanced provision contribution (a maximum of £44, or £36 if using Tax Free Childcare, per week for working family funding of 22 hours per week).
Consumables Charge
We’re introducing a consumables charge for every funded hour of £1.80 per funded hour. Funding is not intended to cover the cost of meals, snacks, drinks, activities, external facilitators, trips, events and parties, other consumables, additional hours or additional services, nor does it cover the cost of enhanced ratios or fair pay (at Raised In everyone on the team is paid at least the Real Living Wage).
The Government and Bristol City Council are not encouraging families to opt out of these charges. Recent research by the National Day Nurseries Association found that 92% of nurseries in England do not believe the current funding rates cover operating costs. The average funding shortfall nationally per child was reported as £2.13 per hour, with the shortfall in high-cost areas like Bristol being even more.
This charge ensures we can continue to offer funded hours to all eligible children and remain sustainable. We’ll ask you to confirm your consent to this charge when you complete your termly EYR01 form, and we’ll be asking for a termly commitment to this to ensure transparency and enable us to plan financially.
We’re also asking families if you’d be willing to pay an additional 20p per funded hour enhanced provision contribution (taking costs for funded hours to a total of £2 per hour). Nurseries are no longer allowed to factor staffing costs (including the fact we’re a Real Living Wage Employer and employ qualified teachers and those with higher qualification levels) or wider business costs (such as utilities, internet access, cleaning or business rates) into any consumables charges, despite funding not covering these costs in full. This enhanced provision contribution ensures we’ll remain sustainable for our families and our community partners.
Examples of what this looks like in practice can be found below, but see our updated Admissions Policy for more info.
If you don’t wish to pay the consumables charge
Our consumables charge is split into three parts - food, activities and other consumables. Food, activities and other consumables are included in the cost of any privately paid sessions.
If you don’t wish to pay the food element of the consumables charge, your child will not have access to nursery food or drinks other than water. Please speak to the Admissions team if you wish to opt out of our food and/or other consumables choices to discuss your options, as your child will also no longer have access to certain activities, trips, parties, events, stay and play sessions etc, and you may be asked to provide additional materials for use at nursery.
If your child is eligible for the Early Years Pupil Premium, we can use this to cover the cost of your child’s food, drinks and snacks. Please speak to the Admissions team for more details.
Example booking patterns and weekly charges
Here’s an example of the weekly charges for a Baby, Toddler or Preschooler doing 20 hours per week with 22 hours of working family funding*
*We’ll only claim the number of hours you access at Raised In, therefore, families will have 2 hours to use at another setting should they wish
Currently, the weekly cost for a Baby doing 30 hours a week with current entitlement funding applied is £210.51. After the new funding entitlement is rolled out (22 hours), and with the new fee structure, this is what the breakdown of the weekly cost would look like:
Currently, the weekly cost for a Preschooler doing 40 hours a week with funding is £221.98. After the new fee structure comes into effect, this is what the breakdown of the weekly cost would look like:
Currently, the weekly cost for a Preschooler doing 20 hours per week with the current Universal Funding applied would be £110.99. After the new fee structure comes into effect, this is what the breakdown of the weekly cost would look like:
What does this mean for me?
Essentially, if you wish to keep your current booking pattern, you’ll see very little change - just a cost saving! Your invoice will clearly show your funded hours, any consumables charged, and any private hours.
Our updated fees, along with terms and conditions, can be found in our Admissions Policy. Please take the time to read through this and let us know if you have any questions.
If you currently have a child in our Baby or Toddler rooms who’ll be entitled to 22 hours per week of working family funding from September, and you’re currently only booked for 20 hours per week at nursery, your booking pattern will remain, and you’ll only be charged our consumables charge and voluntary contribution. If you wish to increase your booking pattern to take advantage of additional hours or lower private rates, please speak to the Admissions team as soon as possible, as availability is limited.
If you’re not able to join our webinars or you have any questions, please let us know.
Get in touch with Admissions on 0800 048 7968 or admissions@rasiedin.org.uk