Invoice and fee information

DfE invoicing and fees best practice guidance

Deposits

Providers may ask parents/carers to pay a 'refundable' deposit, to secure a child's early education entitlement place. This deposit must be refunded in full to the parent/carer within a reasonable timescale.

The provider will not be required to refund the deposit where a parent/carer chooses not to take up the funded place.

Charges

Providers can charge for meals, snacks and consumables such as nappies, sun cream or for additional activities such as language classes as part of a free entitlement place, although these charges must be voluntary. Where parents/carers are unwilling or unable to opt into these voluntary charges, the provider should have a policy in place which highlights alternative options for parents/carers, such as providing their own meals, snacks, sun cream, reducing or waiving the cost of meals, snacks or consumables. The providers' policy for voluntary charges should include all items, services and activities covered by the voluntary charges, and set out the options available to parents/carers who choose not to opt in. There should be a written agreement in place between the provider and the parent/carer which clearly sets out what items, services and activities are included in the voluntary charge. Providers must ensure that the items included are for direct use by the child and not for standard use with all children across the setting. The additional voluntary charge must not include items such as art and craft materials which would be considered part of the basic education provision, staff training, personal protective equipment, hygiene or cleaning products. Written agreements should include a section to show whether the parent/carer has opted in or out, and for how long, for example termly.

Fee and payment information

Providers must publish clear and transparent fee information, so that parents/carers are aware of the sessions and hours available in respect of funded entitlement hours, any charges for additional 'privately paid for' hours, services, meals, snacks and consumables.
Providers should also be clear about their billing approach, frequency and payment methods. For example, whether invoices will be issued on a weekly, equal monthly, variable monthly or termly basis; and whether tax-free childcare and other voucher schemes/discounts can be used if applicable.

DfE fee information checklist for childcare provider delivering early education entitlement funding:

• include the provider's name, address, telephone, and email contact details
• state opening hours and set closure periods
• make clear to parents/carers that funded entitlement hours are completely free of charge during specified hours/sessions/days
• include details of the specific models of delivery offered for 15 or 30 hours, for 2, 3 and 4 year-olds, including the number of standalone places, times, days and sessions
• tell parents/carers about the maximum number of funded weeks/hours in each term and academic year, and which weeks/dates are covered in each funding period
• make clear to parents/carers that the policy the setting will follow, where parents/carers choose to relocate their child to a new provision, following the provider's submission of termly headcount data to Gateshead Council
• highlight to parents/carers who receive a 30-hour funded place that they must re-confirm their eligibility every 3 months, as prompted by HMRC, and the consequences if they fail to do so
• set out contractual expectations relating to specific models which combine 'privately paid for' and funded hours, for example 8am to 1pm. An all-year-round contract is made up of a combination of 'privately paid for' and funded hours during term time. However, the hours of 8am to 1pm will be fully chargeable outside term time
• include charges for 'privately paid for' hours for all age groups
• clearly outline each of the funding entitlements offered for 2, 3 and 4 year-olds and tell parents/carers how they can apply
• highlight to parents/carers whether the provision of meals, snack, consumables, and services will be provided at an additional voluntary cost to the parent/carer, during the days/session a child is accessing a funded place. Cost should be stated
• highlight to parents/carers the settings policy on how they will respond if families are unwilling or unable to opt into the voluntary charge, or the circumstances when a parent/carer may opt out before the agreed point - for example, child develops a severe allergy which impacts on the parent/carer wanting to provide meals and snacks from home
• state the terms, conditions and costs involved, for any parent/carer wishing to purchase additional hours and any fees which will be incurred for late collection
• enable parent/carers to easily reconcile fee information against their invoice, so that they can clearly identify what they have been charged for and why
• state how parent/carers can apply for and use a Tax-Free Childcare account
• inform parents/carers about additional funding payments such as Early Years Pupil Premium (EYPP) and Disability Access Funding (DAF)

DfE guidance invoices

Providers should ensure they have clear invoice/receipt structures in place which enable parents/carers to easily reconcile invoices with charges detailed on the provider's fee information. Invoices should be fully itemised to show a breakdown of all aspects of the fee including funded hours, additional 'paid for' hours, services, meals and snacks.

Please note, funded entitlement hours must not be presented as a monetary value and therefore must be shown as zero cost. This is to ensure that parents/carers can see that their children have received funded hours completely free of charge at the point of delivery.

DfE recommends the following information clearly detailed on the invoice/receipt issued to parents/carers:

• provider name
• Ofsted URN
• provider address
• provider contact details
• invoice number
• invoice date
• invoice period
• parent/carer name and contact details
• child's name
• state the word 'invoice'
• itemised pricing information which is clearly reconcilable with the information you have provided on the fee information
• the total number of funded hours and weeks allocated for the term
• the total number of hours contracted to attend in this invoice period (both privately paid for and funded hours). This is only required for providers who are not charging fees in equal monthly payments
• the total number of funded hours claimed. These must be shown as hours and are not represented as a monetary value. For example 60 funded entitlement hours = £0.00
• information shows whether funded hours are being used in a stretched or term-time-only model. For example 60 funded entitlement hours (stretched model) = £0
• additionally purchased 'privately paid for' hours are clearly itemised. For example 10 hours @ rate = £
• charges for meals and consumables. It is recommended that meals and consumables are shown as separate items to ensure the reason for the charges are transparent and clearly understood by parents/carers. For example 4 breakfasts @ rate = £
• any applicable discounts have been applied
• detail acceptable payment method/s

Example invoice

Please see invoice that would be considered compliant with government and Gateshead Council requirements. Providers should use this example to ensure compliance against the requirements.