Childcare providers in York previously pulled out of the trials claiming funding rates being offered by the Department for Education were insufficient.
The DfE had said the first 15 free hours, which are already available to three- and four-year-olds, and the newly introduced second 15 hours, would be funded at different rates. An increase on current hourly rates was only offered for the second 15 hours.
However, the DfE has now announced that it will fund both of the 15 hours at the higher "early implementer" rates, and not just the additional 15 hours.
A DfE spokeswoman said: “York has been historically underfunded and in recognition of this we have given the local authority an additional uplift on their rate for those providers that deliver 30 hours as part of early implementation.
"As part of our preparations with our early implementer areas, we received new baseline data on what local authorities allocate to early years and in light of this new information we had very constructive conversations with local authorities and the National Day Nurseries Association (NDNA)."
Around 30 of approximately 45 settings in York said they would not be piloting the 30-hour free entitlement at the original rates. It is not clear yet whether the funding offer will prompt the settings to take part in the trials as initially planned.
Stuart Rawlings, executive member for children’s services, education and skills at York Council, said: “We’re delighted that an agreement has been reached with the DfE, which has worked tirelessly with us towards an outcome which we understand childcare providers in York will welcome.
“We look forward to all childcare providers and schools confirming their commitment to working with us and offering additional hours for eligible families."
Purnima Tanuku, chief executive of NDNA said she is "very pleased" the DfE has decided to offer increased levels of funding for the pilots.
“We must learn from the pilot, and other pilots across England, to make sure 30 free hours is achievable and sustainable for providers in the longer term," she said.
“The nursery sector is keen to deliver 30 free hours but we must make sure it will work for parents and childcare providers.”
All working parents of three- and four-year-olds are to be offered 15 hours of free childcare from September 2017, on top of the 15 hours of free early education all parents are entitled to receive. The pilots are due to get under way in September this year.
