Funding Loop FAQs

Funding Loop is software for nurseries in England that automates the admin involved in claiming funded childcare hours. It handles the collection of parental declaration forms, checks working parent eligibility codes, and assists with moving headcount data directly to your local authority portal without manual data entry.

It is not a nursery management system. It is a dedicated funding automation tool that works alongside the nursery management software you already use.

Funding Loop handles the most time-consuming and error-prone parts of the funding claims process from start to finish:

• Import child and parent data directly from your Nursery Management System so forms are pre-populated before parents see them
• Sends digital parental declaration forms to parents by email, with step-by-step guidance
• Allows parents to upload supporting documents as photos and sign electronically
• Checks working parent eligibility codes in bulk
• Assists with moving headcount data into your local authority portal so you can review everything before submitting
• Gives you a real-time dashboard showing form completion status, with one-click reminders for outstanding forms

The result is fewer errors, less chasing, and significantly less admin time every term.

No. Funding Loop is not a Nursery Management System (NMS) and does not replace one. It is a specialist funding automation tool that integrates with the Nursery Management System you already use, such as Famly, Connect Childcare, Blossom, or Nursery in a Box.

Nursery Management Systems handle day-to-day operations like attendance, invoicing, and child records. They do not fully automate the funding application and council submission process. That is the specific problem Funding Loop solves.

In short: your Nursery Management System manages your nursery. Funding Loop manages your funding claims.

Funding Loop is designed for nursery managers and childcare providers in England who claim government-funded hours on behalf of the children in their care. It is suitable for:

• Single-site nurseries
• Multi-site nursery groups
• Settings using any of the major nursery management systems
• Settings that manage funding via spreadsheet

Getting started involves a few straightforward steps:

• Contact Funding Loop to arrange a demo of the system. Once you are happy that Funding Loop meets your needs, the team will send you instructions on how to create your account
• Add your nursery setting using your EY/Ofsted number
• Connect your Nursery Management System by running the appropriate Funding Loop report
• Funding Loop's team will guide you through configuration and your first upload

Funding Loop costs £2.50 per child (plus VAT), per term. You only pay for the children you actually claim funding for — there are no monthly subscriptions, and the price is the same whether you have one nursery or many.

What's included:

• No monthly subscription
• No setup fees
• No exit fees
• Unlimited users
• No locked-in contracts

First Term Guarantee: you can try Funding Loop for a whole term, and if you decide not to continue it will be completely free. If you don't want to carry on, you can simply print off all the forms and go back to paper — no risk, no obligation.

Funding Loop can be accessed from any modern browser. However, the portal submission tool, which automates headcount submission to your local authority, is a browser extension and must be installed in either Chrome or Edge.

From the second term, the process becomes significantly faster. Child and parent data is already in the system, most form details are pre-populated from the previous term, and proof of date of birth documents do not need to be re-uploaded.

Parents only need to review and confirm their details rather than completing the form from scratch, which means faster turnaround and less chasing for nurseries.

Funding Loop integrates with most of the major Nursery Management Systems used in the UK:

• Famly
• Connect Childcare
• Blossom Educational
• Nursery in a Box
• Eyworks
• Redfish
• Instant Nursery Manager
• Abacus (Parenta)
• Octopus 365
• ChildsPlay Manager
• iPAL
• Spreadsheet (for settings without a Nursery Management System)

Each integration works by running a Funding Loop report within your existing system and uploading the export. For settings using Abacus, Funding Loop has built its own extraction tool because no native export exists, ensuring the system works even where third-party software has limitations.

Each supported system has a built-in Funding Loop report. The report exports your child and funding data into a file, which you then upload into Funding Loop.

If you use Abacus, Funding Loop provides a browser-based extraction tool that handles this step, as Abacus does not have a native Funding Loop export.

The Funding Loop portal uploader tool works on the three main local authority portal systems used across England: Capita, Synergy, and Liquidlogic. It also works on the custom local authority portals used by Hertfordshire County Council and Birmingham City Council.

The portal uploader tool is a browser extension that the nursery can use to automate the entry of headcount data into your local authority portal. Rather than typing each child's details in manually, the user uploads data from Funding Loop into the browser tool which then types it into the portal automatically, including attendance patterns, funded hours, and working parent eligibility codes.

It is re-runnable, so if details change after an initial submission, you can run it again in express mode and it will only process the children whose details have changed.

Yes. Funding Loop handles split-funded children, those whose funded hours are shared across more than one setting, and validates the information entered by the parent would not result in an overclaim across the two settings.

Funding Loop takes data security seriously. The platform undergoes independent security testing annually, and the underlying infrastructure providers used by Funding Loop hold their own security certifications. Data is handled in line with UK GDPR requirements.

A full security overview is available on our security overview page.

If your nursery uses Funding Loop, you will receive an email asking you to complete your child's parental declaration form online. This is the standard process for confirming your child's funded hours. Funding Loop simply makes it digital rather than paper-based.

Funding Loop is not a government system. It is software used by your nursery to manage the funding application process. Completing the form confirms that the details of your child's funded hours are correct.

If you are unsure whether you need to complete the form, contact your nursery directly.

Yes. Funding Loop is designed for use by childcare providers in England and holds data securely in line with UK GDPR requirements.

Documents such as birth certificates are used to verify your child's date of birth and are stored securely. Your nursery can delete documents from the system once they are no longer needed.

Funding Loop is straightforward to use on a mobile phone or computer, and the majority of the form is pre-filled from your nursery's records. If you are unable to complete the form digitally, speak to your nursery. They are able to complete the form on your behalf or arrange for a paper copy to be signed.

Check your spam or junk folder first, as automated emails can sometimes be filtered. If it is not there, contact your nursery and ask them to resend the form.