Draft your charging policy: funded hours free, voluntary extras itemised, opt-outs and bring-your-own meals
From 2025 and 2026 many nurseries have had to prove that funded hours are really free and that anything extra is voluntary, itemised and optional. A written policy is the foundation for your invoices, your website and what staff say to parents. AI can turn your own fee list, sorted by you into the right categories, into a clear policy. It cannot tell you whether a charge is allowed. You check each line against the guidance and your local authority.
Steps
- List everything you charge for in one table: item, price, and which hours it relates to (funded hours, private paid hours or both).
- Mark each item yourself as one of: private paid hours, meals and snacks, non-food consumables, optional activities, or something you currently charge that you are not sure about. Check the unsure ones against the guidance and your local authority early years team.
- Write down your alternatives for parents who opt out: for example bringing their own food, or a waived charge.
- Paste the table and alternatives into the prompt and ask for a policy in plain English for parents, plus a one-page staff summary.
- Check every sentence against the guidance, have the owner or board approve it, and publish it with your fees.
The exact prompt
I run a day nursery in England. Write a charging policy for parents using only my table below. Do not decide whether any charge is allowed. If I marked an item "unsure", list it at the end under "CHECK WITH LOCAL AUTHORITY" and do not include it in the policy. Our funded hours and patterns offered: [details]. My charges table (item, price, category I chose): [table]. Alternatives for parents who opt out of extras (my wording): [list]. How a parent opts out and how often we ask them to confirm their choices: [your wording]. Produce: (1) a policy of about 500 words in plain English that says funded hours are free, lists each voluntary extra with its price, says parents can opt out without losing their place, and explains the alternatives; (2) a one-page summary for staff to use when parents ask about charges; (3) the "CHECK WITH LOCAL AUTHORITY" list. Do not invent any price, rule or entitlement and do not give legal advice.
✓ Check before you send
- Every charge in the policy is one you listed and categorised, and each has been checked against the guidance.
- The policy says extras are voluntary, never a condition of a funded place, and lists alternatives.
- No top-up fee, non-refundable registration fee, non-refundable deposit, non-refundable retainer fee or general charge on funded hours is mentioned as payable, and any charge not on your itemised list is left out.
- The owner or board approved it and your local authority early years team has been asked about anything unclear.
- The version published matches your invoices and website.
UK notes extra
- In England, the DfE statutory guidance (valid from 1 April 2026) says the 15 or 30 funded hours must be accessible free of charge with no mandatory charges. Providers can charge only voluntary extras (consumables, meals and snacks, optional activities not needed for the EYFS) and private paid hours, and these must not be a condition of getting a free place. DfE: early education and childcare, statutory guidance for local authorities (valid from 1 April 2026, England).
- The same guidance lists things local authorities must act to stop being charged on funded hours, including top-up fees, necessary materials, business running costs, non-refundable registration fees or deposits, non-refundable retainer fees, additional SEND support costs and general or non-itemised charges. Providers' policies must offer reasonable alternatives such as parents supplying their own food or waiving the charge. DfE: early education and childcare, statutory guidance for local authorities (valid from 1 April 2026, England).
- Funded entitlements and these rules are English. Wales, Scotland and Northern Ireland have separate funded childcare schemes and rules.
- A nursery co-owner's blog describes the same approach (say what you will not charge for, explain opt-outs and re-consent), but it is one owner's account, so rely on the guidance. Nursery Management Show blog by a nursery co-owner: "Free means free - now we must prove it" (19 Dec 2025).