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Childcare Funding

Funded Childcare

Eligible children can access the funded entitlement from the term after they turn nine months.

In England, various funded early education and childcare schemes are available for parents
and carers, including funding for 9-month-olds. If you have specific questions about funding,
feel free to ask!

I. Eligibility for funded early education and childcare schemes

A. Depend on the child’s age
B. Depend on working status or income

II. Under-twos

A. Announcement of eligibility for working parents of children aged nine months up to three years old∙ Funding for 15 hours per week of education and care starting September 2024 for 38 weeks of the year.
∙From September 2025, all eligible working parents of children aged nine months to three years old will be able to access funding for 30 hours per week of education and care for 38 weeks of the year.

Eligible children can access the funded entitlement from the term after they turn nine months.

Two-year-olds

Families with children aged two are currently eligible for 15 hours per week of funded care
and education (for 38 weeks of the year) if they receive any of the following benefits:

  • Income Support
  • Income-based Jobseeker’s Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Universal Credit and your household income is £15,400 a year or less after tax, not including benefit payments.
  • The guaranteed element of Pension Credit
  • Child Tax Credit, Working Tax Credit (or both), and household income is £16,190 a year or less before tax.
  • The Working Tax Credit 4-week run on (the payment you get when you stop
    qualifying for Working Tax Credit)
  • A child may also be eligible if they:
    ∙Are looked after by a local authority
    ∙Have an education, health and care (EHC) plan
    ∙Get Disability Living Allowance
    ∙Have left care under an adoption order, particular guardianship order or a child arrangements order

As of April 2024, all eligible working parents of two-year-olds can access funding for 15 hours per week of education and care for 38 weeks of the year, increasing to 30 hours from
September 2025.

For more information on who counts as a working family, ‘ see ‘What does the government
mean by ‘eligible working families?’ below.

Three- and four-year-olds

All three- and four-year-olds can access 15 hours per week of funded care and education for 38 weeks of the year, regardless of their parent or carer’s income or working status. This is often described as a ‘universal offer’.

In addition, eligible working families with three—and four-year-olds can currently access 30 hours a week of funded care and education for 38 weeks of the year.

The government is not proposing any changes to the funded entitlements for three- and four-year-olds.

What does the government mean by 'eligible working families'?

Families must meet certain income requirements to be eligible for the current 30-hour offer for three—and four-year-olds and the new yet-to-be-introduced offers for children aged nine months and over.

This eligibility criteria applies to each parent or carer in dual-parent households and the lone parent or carer in lone-parent households.

To be eligible, each parent or carer must:  

  • Earn more than 16 hours at the national minimum wage per week. This means you expect to earn at least £2,380 before tax over the next three months – the National Living Wage if you are 21 or older.

There is no requirement to work a certain number of hours per week – it is all about how much you earn.  For example, if you only work 10 hours a week but earn £20 per hour, you will meet the minimum earning threshold. Apprentices are also eligible as long as they earn  16 hours at the apprentice minimum wage.

AND

  • Earn less than £100,000 per year. Again, this applies to each parent and carer in a dual-parent household. This means that if one parent earned £101,000 and the other earned £20,000, a family would not be eligible, but if both parents earned £99,000, the family would be eligible.

These criteria apply if you are self-employed or on a zero-hours contract and expect to meet the earning criteria on average over the three months after applying for your funded entitlement. HMRC will look at data such as your previous earnings to consider whether you are likely to meet the criteria and may contact you for further information if they are unsure. 

If you are starting your own business, you will not be expected to meet the minimum earning criteria in your first year of trading. 

If you are not working but expect to take up paid work within 31 days, you can still apply for the funded entitlement if you wish to meet the income criteria over the coming three months.

If you live with a partner, you must both meet the above criteria even if one of you is not the child’s parent—for example, if you have remarried or started living with a new partner. If you are separated/divorced from your child’s parent, the eligibility rules will only apply to the parent with whom the child usually lives (and their new partner if they are part of the same household).

You can still apply for funded entitlement if you are on shared parental, maternity, paternity or adoption leave. If you are on parental leave, plan to return to work or start a new job by the end of September 2024 and are applying for a funded place for the child who is the subject of parental leave, then you can use an eligibility code from 12 May 2024. Parents who plan to start or return to work between 1 October 2024 and 31 January 2025 can apply for a code from 1 September 2024 to use from 1 January 2025.

If you are on parental leave and are applying for a funding place for a child who is not the subject of parental leave, you can use it regardless of your return to work date.

It is important to note that the above only applies to the funded entitlement. For tax-free childcare, applications must be made within 31 days of returning to work.

If you’re on adoption leave for a child aged three to four, you must return to work within 31 days of the date you first apply for the 30-hour offer. 

What if I am sick or caring for someone?

You will not have to meet the minimum earnings criteria if:

  • You and your partner are employed, but one or both are temporarily away from the workplace on parental, maternity or paternity, adoption leave, or statutory sick pay.
  • You are employed, but your partner either has substantial caring responsibilities or is disabled or incapacitated, or vice versa (i.e. your partner is employed, but you have caring responsibilities or are disabled or incapacitated).      This depends on your or your partner’s entitlement to specific disability or caring benefits. These are Incapacity Benefit, Severe Disablement Allowance, Carer’s Allowance, Limited Capability for Work Benefit or contribution-based Employment and Support Allowance.
How do I sign up for the funded entitlements?

You can apply for the currently funded entitlements and tax-free childcare (see below for further information on the scheme) via a single application on the Gov. UK website.

To complete the application, you must provide your name, address, and national insurance number. You should also indicate whether you expect to meet the income requirements over the next three months and whether you are receiving any benefits. 

If you live with a partner, you must also provide the same information for them. This will enable HMRC to decide whether your child is eligible for the 30 hours (as well as tax-free childcare).

If you are eligible, you will be given an 11-digit code to take to your early years provider, your national insurance number, and your child’s birth certificate.

Your provider will then use the government’s eligibility checking system to check whether the code is valid. If it is, they can book your child’s place. However, providers don’t have to participate in the 30-hour offer, so speak to your early years provider about what they can offer your family.

You will need to reconfirm your eligibility every three months and will receive a reminder text message or email from the government before the deadline.

If you give false information about your eligibility, you could be fined up to £3000.

How soon after my child's birthday can I access these schemes?
Currently, children become eligible for funded early education and childcare the term after they reach the relevant age. For example, a child will be eligible for the 30-hour offer from the term after they turn three. For example, if your child reaches the relevant age on 25 March, your child will be eligible for a funded place from 1 April (i.e. the start of the summer term). However, if your child reaches the relevant age on 5 April, your child won’t be eligible for a funded place until 1 September. This also depends on applying for and receiving your eligibility code before the end of the term when your child reaches the relevant age. For example, if your child reaches the relevant age on 25 March but you don’t apply for the 30 hours until 5 April, your child won’t be eligible for a funded place until 1 September (i.e. the start of the autumn term). You can apply for the two-year-old offer when your child is one year and 36 weeks old and the 30-hour offer for three—and four-year-olds when your child is two and 36 weeks old.
When your child turns 3 When they can get 30 hours from Recommended time to apply
1 September to 31 December Term starting on or after 1 January 15 October to 30 November
1 January to 31 March Term starting on or after 1 April 15 January to 28 February
1 April to 31 August Term starting on or after 1 September 15 June to 31 July
If I’m not eligible for the 30-hour offer, can I still get my 15 hours?

If your child is three or four and you don’t meet the criteria for the 30 hours, you will still be eligible for the universal 15-hour offer.

If your child is two and you don’t meet the criteria for the funded scheme for working families, you will only be eligible for 15 hours if you receive certain benefits (listed above).

If your child is under two and you don’t meet the criteria for the funded scheme for working families, you will not be eligible for any funded care and education.

What happens if I become ineligible for the offer, e.g. because I lose my job?

If you no longer meet the eligibility criteria for funded places for working families, your child’s place will continue to be supported for a ‘grace period’. You should discuss this with your provider if and when you lose eligibility.

The table below outlines the grace period for the current three- and four-year-old offer, depending on when you become ineligible. Your early years provider can tell you how long your grace period will last. A grace period will always end at the end of a term. 

Date parent’s 30 hours eligibility code becomes invalid: LA audit date:Grace Period end date:
1 Jan — 10 Feb11 February31 March
11 Feb — 31 March1 April31 August
1 April — 26 May27 May31 August
27 May — 31 August1 September31 December
1 September — 21 October22 October31 December
22 October — 31 December1 January31 March

 

After the grace period ends, you will still qualify for the 15-hour funded offer if you have a three-or four-year-old, as this offer is universal for children of this age. If you have been utilising the 30 hours at two providers, you can choose which provider you want to continue receiving your 15-hour places.

Accessing funded places: Things to know
  • You don’t have to use your full entitlement of hours to receive funding. For example, if your child is eligible for 30 hours, you might choose to use only 25 hours.
  • Government funding only covers 38 weeks of the year. The actual funded entitlement for the 15-hour offer is 570 hours per year; for the 30-hour offer, it is 1140 hours per year. This means that, for the 30-hour offer, if you take up your total 30 hours per week, government funding will only cover this for 38 weeks of the year. However, your provider may choose to deliver a ‘stretched offer’, i.e., fewer hours per week over more weeks of the year: 22 hours per week over 52 weeks of the year, or just under 24 hours per week over 48 weeks of the year. Speak to your provider about how they can offer the hours and what works best for all of you.
  • Providers can charge non-compulsory additional charges. Government funding is meant to cover early education and care delivery only. This means that early years providers are allowed to charge for additional goods, services and activities, such as lunch or trips, as long as these charges are voluntary. For example, your provider might give you the choice of paying for lunch or providing lunch yourself. However, it is essential to note that this is only possible in some early years settings (for example, some may not have food storage facilities).
Tax-free childcare

Tax-free childcare is a government scheme that allows all eligible parents of children under 12 or under 17 if their child has a disability to open an online account to pay for childcare and early education. For every £80 you spend, the government will pay an extra £20. 

If your child has a disability, you can save up to £10,000 per year in a tax-free childcare account (£8,000 that you’ve paid in, plus £2,000 that the government has paid in) or up to £20,000 (£16,000 that you’ve paid in, plus £4000 that the government has paid in).

The eligibility criteria for tax-free childcare are broadly the same as for the 30-hour offer (see the ‘eligibility’ section above). However, you can only use tax-free childcare to pay registered early years providers.

It is important to note that while you can use tax-free childcare alongside the 30-hour offer (or 15-hour offer), you can’t use it at the same time as:

Childcare vouchers
Universal Credit
Tax credits

Chargeable Extras
DescriptionUnitUnit PriceLine Total
We offer 15 hours free childcare (bursary) or 30 hours funded childcare.Per session

Free if bursary place

£8 consumable charge using 30 hours funding

Up to £48 per week

Additional hours purchased

Hourly Rate (bookable under nursery discretion) – £13
Full Day – £83
Morning – £56
Afternoon – £48

N/AN/A

N/A

If you wish for us to work out fees for you, please ask.

Meals & Snacks

Meals are provided per morning or afternoon session.

Morning sessions include breakfast and lunch.
Afternoon sessions include dinner and a light snack.

Per session£4Up to £24 per week

Consumables

For example, nappies and sun cream.

Per session£4Up to £24 per week

Additional voluntary services

For example, trips, forest school sessions, or foreign language lessons.

Additional trips are booked as and when required. Parents may choose to accept or decline these at their own discretion.

Ad HocVaries£ Varies

If you are entitled to Tax-Free Childcare, you can pay your fees through this scheme and receive 20% towards your childcare costs. Alternatively, if you are claiming Universal Credit, you may be able to reclaim some of your childcare costs through your personal portal. If you need any assistance with either scheme, please get in touch.

If you do not wish to pay for specific consumables (for example, if you would prefer to provide your own nappies or sun cream), please let the nursery know so the appropriate arrangements can be discussed.

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