A Parent Guide to Early Years Funding
In September 2025, the government extended childcare funding to 30 hours per week for eligible working parents. This guide explains how it works, what you can claim, and how we apply funding.
Types of funding available
The system can feel complicated — age thresholds, eligibility codes, varying term lengths. Here's a clear breakdown.
2-Year Extended Funding
2 – 3 years
30 hours/week
For working families
Universal Funding
3 – 4 years
15 hours/week
Available to all families
3-Year Extended Funding
3 – 4 years
30 hours/week
For working families (stacks with Universal)
We are open for 33 weeks per year (three 11-week terms). We claim 15 hours × 11 weeks = 165 funded hours per term on your behalf (or 330 hours for 30-hour Extended funding).
Everything you need to know
Click on each section below to learn more about eligibility, application process, and how funding works
Who's eligible?
All families, regardless of income or work status. Your child becomes eligible the term after they turn 3.
How to apply
At the start of each term, we confirm which children are eligible based on their age and send you a declaration form for electronic signature. We submit an application to the Local Authority, which they review and approve. We then apply the funding to your invoice.
Two age brackets
- 2-Year Funding: Term after 2nd birthday until 3rd birthday
- 3-Year Funding: Term after 3rd birthday until school start (stacks with Universal for 30 hours total)
Working parent criteria
To qualify, both parents (or the sole parent in a single-parent household) must:
- Be working, or about to start work
- Earn at least the equivalent of 16 hours per week at minimum wage
- Earn £100,000 or less per year each
If you're on maternity, paternity, or adoption leave, or unable to work due to disability or caring responsibilities, you may still qualify.
How to apply
- Check your funding eligibility here: beststartinlife.gov.uk/eligibility-checker
- Apply at gov.uk/apply-free-childcare-if-youre-working (up to 16 weeks before your child reaches the qualifying age)
- If eligible you'll receive an 11-digit eligibility code from HMRC
- We'll send you a short Eligibility Form to complete and then verify your code
- We'll send you a Declaration Form for e-signature and apply funding to your invoices
Important: Please provide everything at least 6 weeks before the term starts so we can process it in time.
Important: For Extended Funding you need to reconfirm with HMRC every 3 months. You'll get reminders from them, but we won't — please keep on top of this or your code will expire.
Term start dates
- 1 January (Spring term)
- 1 April (Summer term)
- 1 September (Autumn term)
When to apply
| Your Child's Birthday | Funding Starts | Recommended Time to Apply |
|---|---|---|
| 1 September – 31 December | 1 January | 15 October – 30 November |
| 1 January – 31 March | 1 April | 15 January – 28 February |
| 1 April – 31 August | 1 September | 15 June – 31 July |
Apply early
You can apply up to 16 weeks before your child reaches the qualifying age.
Potential savings
For 3-year-olds, accessing Universal funding (15 hours) can save approximately £3,300 per year. With Extended funding (30 hours), this increases to approximately £6,600 per year.
What funding covers
Funding is intended to cover delivery of the Early Years Foundation Stage (EYFS) curriculum only, not the specialist Montessori enrichment that is integral to our offering. If you receive government funding and your child attends non-funded hours, all charges are included in your non-funded fees to provide a fully integrated service.
There are no additional costs and access to funded hours is not conditional on taking non-funded hours.
Funded Delivery Window
Funded hours can be taken from 9:00am to 12:00pm Monday to Friday subject to availability. We review this window termly and may make adjustments based on occupancy and staffing requirements.
Tax-Free Childcare
Working families can also use the Tax-Free Childcare scheme to pay nursery bills. For every £8 you pay in, the government adds £2 — up to £2,000 per child per year. You can use Tax-Free Childcare alongside your funded hours. Apply at gov.uk/tax-free-childcare
How Much Will I Actually Pay?
Your nursery fees depend on your child's age, attendance pattern, and funding eligibility. Term lengths and funding rates are set by the Local Authority and can vary slightly each term — this calculator gives you an accurate estimate.
Nursery Fees CalculatorCommon questions
Real questions from parents, answered clearly
You can still qualify if you each earn at least the equivalent of 16 hours per week at minimum wage. If one parent doesn't work because they're on maternity/paternity/adoption leave, or they receive certain disability or carer benefits (such as Carer's Allowance, Incapacity Benefit, or Employment and Support Allowance), you may still be eligible — the working parent just needs to meet the earnings threshold. If one parent simply chooses not to work and doesn't receive a qualifying benefit, you won't qualify for Extended funding, but your child will still get Universal funding from age 3.
Yes! From age 3, if you qualify for Extended funding, you receive 30 funded hours total. This is made up of 15 hours Universal funding (available to all) plus 15 hours Extended funding (for working families). They stack together automatically.
Your code expires after 3 months if not reconfirmed. HMRC sends reminders, but if you miss them, your Extended funding will stop until you reconfirm. You'll need to pay full fees for any unfunded hours. We recommend setting a calendar reminder to reconfirm on time.
There's a "grace period" — you won't lose your Extended funding immediately. Once your income exceeds £100,000, you'll enter a grace period that lasts until the end of the following term. This gives you time to adjust. After the grace period ends, you'll no longer qualify for Extended funding but will still receive Universal funding from age 3.
Yes, you can split your funded hours between two providers. You'll need to let each provider know how many hours you want to claim with them. The total cannot exceed your entitlement (15 or 30 hours depending on your eligibility).
When you accept a place, we ask for a deposit to secure it. This deposit is returned when your child qualifies for Early Years funding or within 28 days of your child's last day at nursery. See our Availability & Fees page for current deposit amounts.
Jargon buster
Quick definitions of terms you'll come across
Adjusted net income
Your total taxable income minus certain deductions (like pension contributions). Used to determine if you're under the £100,000 threshold.
Declaration form
A form the Local Authority requires us to collect from you, confirming your child's details and your consent to claim funding on their behalf.
Eligibility code
An 11-digit code from HMRC that proves you qualify for Extended funding. Valid for 3 months before needing reconfirmation.
Extended funding
30 funded hours per week, available to working families from the term after their child turns 9 months until they start school.
EYFS
Early Years Foundation Stage — the government's framework for early years education and care. All nurseries must follow it.
Term after
Funding starts from the beginning of the term after your child reaches the qualifying age, not from their birthday.
Universal funding
15 funded hours per week, available to all families from the term after their child turns 3.
Working family
The DfE's term for families where both parents (or a single parent) earn at least the equivalent of 16 hours per week at minimum wage, and no more than £100,000/year each.
Questions about your funding?
If anything in this guide isn't clear, or you'd like help working out what you can claim, please get in touch.
Contact Antonietta