Funding Entitlement
NEWS BULLETIN: The UK government has introduced an expanded funding entitlement for early years childcare to support working parents and improve access to early education. The policy aims to reduce childcare costs, enable more parents to return to work, and enhance early childhood development opportunities across the UK
15 Hours Free Childcare for All 3- and 4-Year-Olds
Eligibility: All children aged 3 and 4 are entitled to 15 hours of free childcare per week during term time (38 weeks per year). This is available to all families, regardless of income or working status.
New Funding Entitlement for Children Under 3
Eligibility: Starting in September 2024, the government will gradually extend free childcare entitlements to children aged 9 months to 2 years. Initially, parents will be entitled to 15 hours per week, which will increase to 30 hours by September 2025. Eligibility is the same as the to that for 3- and 4-year-olds, primarily targeting working parents.
30 Hours Free Childcare for Working Parents of 3- and 4-Year-Olds
Eligibility: Working parents of 3- and 4-year-olds can receive an additional 15 hours of free childcare per week, bringing the total to 30 hours during term time (or fewer hours spread over more weeks). To qualify, both parents (or the sole parent in a single-parent family) must be working and earning at least the equivalent of 16 hours per week at the National Minimum Wage or Living Wage, but less than £100,000 per year.
85% Childcare Cost Coverage Under Universal Credit
Eligibility: If you're on Universal Credit and working, you can claim back up to 85% of your childcare costs. This applies to children up to the age of 16. There's a maximum monthly limit of £950.92 for one child and £1,630.15 for two or more children.
15 Hours Free Childcare for Disadvantaged 2-Year-Olds
Eligibility: Some 2-year-olds are eligible for 15 hours of free childcare per week if their families meet certain criteria, such as receiving income support, Jobseeker’s Allowance, or if the child has special educational needs or disabilities (SEND). Children who are looked after by the local authority are also eligible.
Tax-Free Childcare
Eligibility: Parents can open a Tax-Free Childcare account, into which they can deposit money to pay for childcare. The government will then top up the account with an additional 20% (up to £2,000 per child per year, or £4,000 for a child with a disability). This is available to working parents with children under 12 (or under 17 if the child has a disability).
