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Funding Scenarios

Common funding scenarios for your setting

Julia Rose avatar
Written by Julia Rose
Updated over a week ago

Setting Your Local Council Funding Grant Rates

To make sure Famly can calculate the correct Local Council funding for each child, you’ll first need to enter your council’s grant rates. If you haven’t added these yet, you can follow the steps below to get started.

If you already know your funding rate will be changing, you can also set up a new rate period in advance.


Stretching Funding

If children attend all year round, you can spread (or stretch) their funding across the whole year. This is common for nurseries that annualise their fees. Instead of deducting a higher amount just during term-time weeks, Famly will spread the total funding evenly across every week the child attends.

In each child’s plan, you can enter the number of funded hours they receive per week. If this works out as a decimal, simply select add as decimal.

Example:
A child receives 30 hours of funding for 38 weeks but attends 51 weeks.

  • 30 hours × 38 weeks = 1140 hours for the year

  • 1140 ÷ 51 weeks = 22.35 hours per week

Famly will then apply 22.35 funded hours across the child’s sessions each week. This is how the total funding amount is calculated.

💡 You can also set the funding manually, but we don’t recommend this as it increases the risk of over or under-funding.


Funding Specific Hours

Some nurseries choose to allow funding only for certain hours or sessions. To do this in Famly, you’ll need to create two types of hourly sessions:

  • Funded hourly session – for the hours covered by the council grant

  • Non-funded hourly session – for additional chargeable hours at your standard rate

For example, a child could receive:

  • 15 funded hours (entered as a Funded hours session) at the council rate

  • 12 additional hours (entered as an Additional hours session) at your nursery rate

Once you’ve set up both types of sessions, you can add them to a child’s plan.


When a Plan Changes Mid-week

Funding in Famly is always based on a full Monday–Friday week. If a child’s plan changes mid-week, or if your invoice period splits a week, Famly will automatically redistribute the funding. You can always see exactly how this is applied by checking the invoice preview.

Famly will never apply more than one week’s worth of funding in a single week.

Example:

  • A child has two morning sessions and three afternoon sessions each week

  • The mornings use 10 funded hours, and Monday afternoon uses 4 more

  • This leaves 1 hour, which Famly applies to the next eligible afternoon session

If the week is split across two invoice periods, the hours will be allocated accordingly (e.g. 14 hours on one invoice, 1 hour on the next).

💡 If a child’s booking plan is split into parts, funding can only ever be applied to the first part of that plan


Funding on Bank Holidays

If a funded session falls on a bank holiday, Famly will move that funding to the next available day. This ensures the child still receives their full entitlement.

If you’d prefer not to reallocate funding like this, you’ll need to adjust the child’s plan:

  1. Go to the child’s profile

  2. Click Bookings and open the relevant plan

  3. Select Edit and open the session that should not receive funding

  4. Click Disallow funding

  5. Save and exit

If you also want to prevent a session from being fully funded when it’s already partly funded, you can set it up as an hourly rate instead. Then, allow funding on the hours you want and disallow it for the rest.

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