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Childcare Funding

There are currently three separate government funded childcare schemes that offer free childcare for children aged two, three and four. Each of the free childcare schemes has different eligibility rules so it’s important to check which of the schemes is right for you. The schemes available if you live in England are:

  • 15 hours free childcare for 2-year-olds (available for families in receipt of low-income benefits or in some cases, on low income and NRPF)

  • 15 hours free childcare for all 3 & 4-year-olds

  • 30 hours free childcare for 3 & 4 year-olds (available for eligible families in work)

  • Using free childcare if you have no recourse to public funds

                                                   Click here for further information ➤

Educational Toys
Educational Toys

2 Year Old Funding

In order to be eligible for free childcare for your 2yr old you must either be in receipt of a qualifying benefit or your 2yr old child must fit into one of the categories of children who have additional needs.

The qualifying benefits are:

  • Income Support

  • income-based Jobseeker’s Allowance (JSA)

  • income-related Employment and Support Allowance (ESA)

  • Universal Credit – if you and your partner are on a low income from work (this usually means a combined income no more than £15,400 a year after tax)

  • tax credits and your family have an annual income of no more than £16,190 before tax

  • the guaranteed element of State Pension Credit

  • support through part 6 of the Immigration and Asylum Act

  • the Working Tax Credit 4-week run on (the payment you get when you stop qualifying for Working Tax Credit)

 

Even if you are not receiving a qualifying benefit your 2-year-old can still get free childcare if any of the following apply:

  • they’re looked after by a local council

  • they have a current statement of special education needs (SEN) or an education, health and care (EHC) plan

  • they get Disability Living Allowance

  • they’ve left care under a special guardianship order, child arrangements order or adoption order

  • you can’t claim benefits because of your asylum seeker status or a no recourse to public funds condition. This only applies in specific circumstances – see below.

Once you have been accepted as being eligible for free early years education (15 hours free childcare for two-year-olds), your child will continue to receive free childcare even if you have a change of circumstances, such as no longer qualifying for benefits.

The earliest you can apply is at the start of the term in which your child turns 2, but the childcare will not actually start until the beginning of the term after you apply.

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Free Childcare
for 3 and 4 yr olds

(15 Hours)

This scheme is open to all 3 and 4-year olds. There are no earnings or work requirements. You should be able to start receiving the childcare from 1 January, 1 April or 1 September following your child’s 3rd birthday.

Wooden Cars
Wooden Toys

Free Childcare

for 3 and 4 yr olds

(30 Hours)

To be eligible for 30 hours free childcare for your 3 or 4-year-old, you, and any partner, must each expect to earn (on average) the equivalent of working 16 hours a week at your national minimum wage (£142.56 at the National Living Wage (£8.91 per hour April 2021 – March 2022), less if you are under 25 and on the National Minimum Wage). This earnings requirement will not apply if you are self-employed and you started your business less than 12 months ago.

You will still be treated as meeting the earnings requirement if you or your partner are on maternity, paternity or adoption leave – this applies whether you are single or a couple. There are also temporary changes which allow you to continue to use the scheme if your earnings are temporarily affected by coronavirus and you are either on furlough or claiming a Self-Employed Income Support Scheme Grant.

If you are a couple, and one of you meets the earnings requirements through qualifying paid work but one of you is unable to work because you have a disability or you are a carer, then you will be exempt from the earnings requirement. In this circumstance, one of you MUST be working and the other would need to evidence that you are unable to work by showing that you are receiving Incapacity Benefit, Severe Disablement Allowance, Carer’s Allowance or Employment and Support Allowance.

You are not usually able to use the scheme if either you or your partner has a taxable income over £100,000. In the tax year 2020/21, there were temporary changes that meant if you exceeded that limit due to extra work related directly or indirectly to the coronavirus response, you could still use the scheme as long as you didn’t expect your adjusted net income to go above £150,000. However, this no longer applies to the current tax year (2021/22).

To receive 30 hours free childcare you will need to apply online through gov.uk,after registering for an account you will get a code that you can take to your childcare provider. You need to apply before the term starts or you will have wait until the beginning of the next term

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