Following lobbying from Coram PACEY and other organisations, the Government has now confirmed that from 1 October 2026, local authorities in England must ensure that early years providers – including childminders – can be paid monthly for funding entitlements, if they choose to. This is a new term set out in the Dedicated Schools Grant guidance: conditions of grant 2026 to 2027.
Currently, there is a range of practice across different local authorities with some paying in monthly instalments and others on a termly or less regular basis. Irregular payments have a significant impact on childminder budgets:
- “We have monthly bills and trying to budget is a nightmare. Especially if a child leaves during a term and money is then clawed back. A monthly payment would be so much better!” Childminder in Leicestershire
- “If a child leaves with immediate effect and is replaced immediately, a childminder will have to pay back money to the LA and wait up to 3 months to be paid for the new children. This is not ideal when we have bills to pay monthly.” Childminder in Buckinghamshire
- “Funding should be paid monthly as childminders are expected to receive a lump sum which personally effects my Universal Credit as I can get 4 months funding in one go.” Childminder in Leicestershire
Relevant links
- Coram PACEY’s written submission to the Education Committee’s inquiry into early years.
Ka Lai Brightley-Hodges, Head of Coram PACEY comments:
“We warmly welcomed the Government’s commitment to improving childminder funding frequency in the Best Start in Life Strategy and it is positive to see that childminders will be able to receive monthly payments – if they wish to – from 1 October. Irregular funding payments have created significant challenges for childminders in managing their cash flow and protecting them against changing circumstances. Stronger directives will ensure local authorities are following fairer, consistent and timely procedures across England.
“We will closely monitor how this policy operates in practice to ensure that funding payments genuinely work better for childminders, both in terms of frequency and delivery. We will work with local authorities and childminders to gather feedback and assess how effectively the new arrangements are being implemented.
“While this is a positive step forward, improving the frequency of payments alone will not solve the funding crisis for childminders. We now urge the Government to go further by increasing funding rates for three- and four-year-olds and allowing childminders to claim funding for related children – measures which would have a significant and lasting impact on the sector.”
