The funded entitlements in England
England’s funded early-years offer has three age-based routes: support for eligible working parents, a universal entitlement for three- and four-year-olds, and a benefit-based route for some two-year-olds. A child’s age determines when an entitlement can start, while employment or family circumstances determine access to some routes. The details below set out the weekly hours, qualifying conditions and available schedules for each entitlement. These rules and rates apply in England and do not apply in Scotland, Wales or Northern Ireland.
Working parent entitlement
From 1 September 2025, eligible working parents in England can receive up to 30 funded hours a week from the term after their child turns nine months until school age. Eligibility depends on each parent’s expected earnings and adjusted net income, and the entitlement is claimed through the government Childcare Choices service.
| Requirement | Detail |
|---|---|
| Child’s age and hours | From the term after a child turns nine months until school age; up to 30 funded hours a week from 1 September 2025. |
| Expected earnings | Each parent must expect to earn at least the equivalent of 16 hours a week at the National Minimum Wage or National Living Wage. For a single-parent household, the test applies to that parent. |
| Adjusted net income | Each parent’s adjusted net income must be below £100,000 in the 2025–26 tax year. |
| Application | Apply through the government Childcare Choices service. If eligible, the applicant receives an eligibility code to give to their childcare provider. |
| Reconfirmation | Reconfirm eligibility regularly, normally every three months, through the Childcare Choices service to keep the code valid. |
| Phased expansion | Two-year-olds in eligible working families received 15 hours from April 2024; children aged nine months to two years received 15 hours from September 2024; up to 30 hours followed from 1 September 2025. |
| Annual schedule | The full 30-hour allocation is 1,140 hours over 38 weeks. If spread evenly across 52 weeks, it is about 22 funded hours a week instead of 30 during term-time weeks. |
The earnings test is based on expected income, not simply whether a parent has a job title or works a fixed number of shifts. A code must remain valid through regular reconfirmation for the funded place to continue.
Universal 15 hours for three and four-year-olds
Every three- and four-year-old in England can receive 15 funded hours a week, regardless of whether their parents work or receive benefits. The entitlement normally starts from the term after the child’s third birthday and continues until compulsory school age.
| Feature | Detail |
|---|---|
| Eligible children | All children aged three and four in England; parental employment and household income do not determine access to these 15 hours. |
| Weekly hours | 15 funded hours a week, equivalent to 570 hours over 38 weeks. |
| Starting point | Usually from the term after the child turns three. |
| Term-time use | The 570 annual hours may be used across 38 weeks, giving 15 funded hours in each of those weeks. |
| Spread schedule | Where a provider offers a stretched arrangement, the same 570 hours can be spread over more weeks; across 52 weeks, that averages about 11 hours a week. |
The term-time pattern concentrates the hours into 38 weeks, while spreading them reduces the number available in each week. The actual schedule depends on the provider’s offer and the arrangement agreed for the child.
Support for two-year-olds
Some two-year-olds can receive 15 funded hours a week because their family receives qualifying benefits, even when their parents do not meet the working-parent test. Qualifying routes include certain families receiving Universal Credit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, the guarantee element of Pension Credit, or specified tax credits.
| Route | Detail |
|---|---|
| Benefit-based eligibility | A child aged two may qualify where the family meets the rules for a listed qualifying benefit or tax-credit route. |
| Hours available | 15 funded hours a week for 38 weeks, giving 570 hours a year. |
| Working-parent expansion | From April 2024, the phased expansion introduced 15 funded hours for eligible working parents of two-year-olds. |
| How hours are used | The 570 hours may be taken over 38 weeks or, where offered, spread over more weeks with fewer funded hours in each week. |
The benefit-based entitlement and the working-parent expansion are separate qualifying routes to 15 hours for a two-year-old. A stretched schedule changes how the 570 annual hours are distributed; it does not increase the total allocation.
How funding reaches providers
The funding route runs from the Department for Education to local authorities and then to childcare providers. Each council sets hourly payment rates within the national framework, so the amount a provider receives can differ by area and by a child’s age. The funding is paid to the provider rather than to a parent as cash or a voucher. A funded place can still involve a bill for hours or items outside the funded provision.
Hourly rates and local authorities
The Department for Education (DfE) allocates early years funding to local authorities in England through the early years national funding formula (EYNFF). The formula determines each authority’s allocation for funded childcare, taking account of factors including the number of eligible children and recognised differences in local costs and needs. It is a route for distributing public funding between government and councils; it does not set one nationwide price that every nursery must charge.
Each local authority then uses a local funding formula to calculate the hourly rates it pays to approved providers. The council’s published rates apply to funded hours claimed for eligible children, rather than to every hour a child attends. Providers submit information about children and their funded attendance through the local authority’s arrangements, and payment is calculated using the applicable rate and any relevant supplements.
Rates per hour differ between local authorities, so a provider in one council area may receive a different amount from a provider in another. The rate can also vary by age band: councils publish rates for the age groups covered by the funded entitlements, which can include children under two, two-year-olds, and three- and four-year-olds. The precise bands and amounts are set out in each authority’s current funding information, rather than in a single rate table for all of England.
Local formulas may also include supplements for factors such as deprivation or additional needs, subject to the council’s arrangements. These can affect the total payment a provider receives for a particular funded place, but they do not turn the entitlement into a payment to the family. For a practical comparison, check the relevant local authority’s provider funding rates for the financial year and age band; a national headline rate cannot reliably show what a specific nursery receives.
What the hours do not cover
Providers may set separate charges for items or attendance outside the funded provision, but families cannot be required to buy them to access funded hours. Typical charges include:
- Meals: A provider may charge for lunch, snacks or drinks served during the day, with arrangements depending on its food service.
- Consumables: Items such as nappies, wipes, sun cream or craft materials may be charged for when they are supplied by the provider.
- Additional hours: Time booked before or after the funded session, or attendance beyond a child’s funded hours, may incur a separate fee.
- Optional extras: Activities, trips or other services may carry a charge when they are genuinely optional and separate from the funded hours.
Funded hours cannot be made conditional on paying for these extras. Ask what alternatives are available, such as bringing a meal or supplying consumables yourself, and request a clear breakdown of any charges.
Why a nursery can still charge fees
The free childcare entitlement in England is government funding paid to an approved provider for eligible hours; parents do not receive the money directly. It is not a cash allowance, a voucher to spend at any nursery, or a promise that every hour of attendance will be free. The local authority pays the provider according to the funded hours claimed and the applicable local rate.
A nursery’s usual fee reflects its own operating costs, while its public funding is calculated under the local authority’s funding arrangements. The amount received for a funded hour may not match the nursery’s private hourly fee. As a result, the entitlement covers the specified funded hours, not an automatic discount against every charge on a family’s account.
A bill may include fees for attendance beyond the funded allocation, such as an extra session, as well as charges for optional goods or services. For example, if a child attends for more hours than are funded in a particular week, the additional booked hours can be charged at the provider’s stated rate. Charges cannot be attached to funded hours as a condition of accessing them.
When comparing places, ask the nursery to show which sessions are funded and which are chargeable, and to explain each additional amount before you agree a booking. This makes it easier to distinguish the funded provision from separately billed attendance or optional items.
Other help with childcare costs
Government-funded hours can be combined with other support to help meet the cost of eligible childcare in England. Tax-Free Childcare adds money to an online account, while Universal Credit can contribute a percentage of eligible costs. Both schemes can be used alongside funded hours, but they cannot be used together for the same family. Which option is more suitable depends partly on whether you receive Universal Credit and how much paid childcare you need.
Tax-Free Childcare
Tax-Free Childcare is a government top-up for eligible working parents paying for registered childcare. For every £8 you pay into your childcare account, the government adds £2. The top-up is limited to £2,000 per child per year, or £4,000 for disabled children. The account can be used to pay an approved childcare provider directly.
You can use Tax-Free Childcare alongside government-funded hours. The account helps with eligible childcare costs that remain payable, such as additional hours outside the funded entitlement; it cannot be used to pay for hours already funded by the government. Check that your provider accepts Tax-Free Childcare payments before relying on the account for a bill.
This scheme may suit employed or self-employed parents who meet its work and eligibility checks, do not receive Universal Credit, and have regular childcare costs. The top-up is a fixed contribution of £2 for each £8 paid in, so its value depends on how much eligible paid care you use. A household with modest costs may receive less support than one with substantial bills, because the annual limit applies per child. Compare the expected top-up with the help available through Universal Credit before choosing; the two schemes cannot be used at the same time.
Comparison of schemes
Tax-Free Childcare and Universal Credit childcare costs both help with eligible paid care and can sit alongside funded hours, but their calculations and eligibility differ.
| Feature | Tax-Free Childcare | Universal Credit childcare costs |
|---|---|---|
| How support is calculated | £2 added for every £8 paid in. | Can cover up to 85% of eligible childcare costs. |
| Limits | Up to £2,000 per child per year, or £4,000 for disabled children. | Monthly maximums apply; the amount depends on eligible costs and Universal Credit rules. |
| Who it may suit | Eligible working parents who do not receive Universal Credit and pay for registered childcare. | Working parents receiving Universal Credit, particularly where eligible childcare costs are high. |
| Funded hours | Can help with eligible costs alongside funded hours. | Can help with eligible costs alongside funded hours. |
| Use with the other scheme | Cannot be used at the same time as Universal Credit childcare costs. | Cannot be used at the same time as Tax-Free Childcare. |
Estimate support using your own eligible costs and circumstances: the top-up is fixed, while Universal Credit support is a percentage subject to monthly limits.
Universal Credit childcare costs
Universal Credit can cover up to 85% of eligible childcare costs for parents who receive Universal Credit and meet the childcare element’s conditions. Support is calculated against eligible costs, and monthly maximums apply. The amount paid therefore depends on the childcare bill and the rules used to calculate your Universal Credit award.
This help can complement government-funded hours. Funded hours reduce the amount of childcare you pay for directly; the Universal Credit childcare element may help with eligible costs for additional paid care. The childcare must meet the relevant requirements, so check that your provider and the costs you plan to claim are eligible. Keep evidence of what you have paid, as you may need to report childcare costs and provide proof through your Universal Credit account.
The scheme is aimed at families receiving Universal Credit who are working and paying for childcare so they can work, or increase their hours. It may be especially useful where paid childcare costs are substantial, because the contribution can reach 85% of eligible costs, subject to the monthly limits. Tax-Free Childcare is often more relevant to eligible working parents who are not receiving Universal Credit and can use the government’s £2-for-every-£8 top-up. Compare the support available for your household before using either option.
You cannot use Universal Credit childcare costs and Tax-Free Childcare at the same time. The schemes are alternatives, although either may be used alongside funded hours. When comparing them, consider your Universal Credit status, the eligible costs you expect to pay each month, and the applicable limits; a percentage of a large bill may give a different result from a fixed top-up.
Questions about free childcare hours
Funded early-years childcare in England is organised around age-based entitlements and termly start dates. A family’s circumstances can affect access to some offers, while other hours are universal. Providers can arrange the annual funded allocation across different patterns of attendance. The distinction between entitlement and weekly schedule matters when planning a child’s place.
Who can get 30 hours of free childcare?
Eligible working parents can claim up to 30 funded hours a week for a child from the term after they turn nine months. Both parents in a couple, or the sole parent, must meet the work and income tests. Each must expect to earn, on average, at least the equivalent of 16 hours a week at the National Minimum Wage over the next three months. Neither parent can have adjusted net income above £100,000 a year. For a couple, both must qualify; the test is not based on their combined income.
Is free childcare available from nine months?
Yes. Eligible working parents can access funded childcare from the term after their child turns nine months. The offer was introduced in stages: from September 2024, eligible working parents of children aged nine months and older could receive 15 hours a week; from September 2025, this increased to 30 hours. The start date follows the term calendar, so funding does not begin on the child’s nine-month birthday. Access is subject to the working-parent eligibility rules.
Can the funded hours be used in school holidays?
The standard funded allocation covers 38 weeks a year, usually during term time. Some providers let families spread the same annual hours across 52 weeks, which reduces the number of funded hours available each week. For example, 30 hours over 38 weeks is 1,140 hours a year; spread across 52 weeks, that averages about 22 hours a week. The annual allocation does not increase when it is stretched.
Do you need to work to get 15 hours at age three?
No. The universal 15 hours for three- and four-year-olds in England do not depend on whether either parent works. This entitlement is separate from the working-parent offer, so parents do not need to meet its employment or earnings tests to receive the universal hours. The funded hours are available from the term after the child turns three.