Early years provision is defined in section 20 of the 2006 Act as the provision of childcare. “Childcare”, as defined in section 18 of the 2006 Act, specifically excludes care provided for a child by a parent, step-parent, foster parent (or other relative) or by a person who fosters the child privately or has parental responsibility for the child. Early years provision by a childminder (either independently registered with Ofsted or registered with a childminder agency) for a related child does not count as childcare in legal terms.
Government early education funding cannot be claimed by, or spent on, childminders providing childcare for their own child or a related child, even if they are claiming for other children.
The Statutory guidance does state a local authority can chose to fund children related to childminders from other sources of funds. Unfortunately, there are no additional sources to fund children at a children to receive childcare at related childminders, in addition to going against the legislation of the Childcare Act that the Department for Education do not want to fund childminders to look after their own or related children.