Game-Changing Childcare Funding Announced in the Spring Budget 2023

Far-reaching childcare funding reforms have been announced in the Chancellor of the Exchequer's Spring Budget 2023.Childcare funding has been all over the news in the UK this month, following the far-reaching childcare funding reforms that were announced in the Chancellor’s Spring Budget for 2023. The announcement is indeed of significant new funding, which is set to allow far more children and families to benefit from free, Government-funded childcare in the near future. Early indications are that it’s going to be a game-changer, with even younger infants gaining free access to an early years education and new parents, particularly mothers, having a much more viable route to returning to the workplace following the birth of a child. But what exactly are the changes and will they benefit your family? Today, we answer all such questions in our guide to the new childcare funding announced in the Spring Budget 2023.

New, Free, Government-Funded Childcare for Families - Coming Soon

The Chancellor has announced 3 key childcare funding improvements that will be phased in during the run-up to September 2025:

  1. Up to 30 hours per week of free childcare will become available for eligible children aged from just 9 months right up to school age.
  2. More generous Universal Credit childcare support will be available for working parents — and it’ll be pre-funded to ease cash flow.
  3. Improvements to Government-funded childcare hours for working parents of school age children will be introduced, via a Wraparound Care ‘Pathfinder’ scheme.

Any one of the three funding reforms above could make a huge difference for eligible families. We’ll explore each in more detail below.

Up to 30 Hours Per Week of Free Childcare for Children Aged from 9 Months

Up to 30 hours per week of free childcare will soon be available for eligible children aged from just 9 months.Until now, only 3- and 4-year-olds in England were guaranteed to receive 15 hours (30 in some cases) of free childcare funding each week, and only some 2-year-olds have been eligible for the ‘15 hours’ scheme, for example if their families were in receipt of some kind of benefit. However, in what some might call a childcare funding revolution, the Chancellor has announced that many children aged from only 9 months will soon be eligible for 30 hours per week of free childcare. Their funded childcare hours could then be available to them from that young age right up until they leave early years childcare to start school around the age of five.

The funding will be rolled out in stages and is for children of working parents. First, 2-year-olds will become eligible for 15 hours of free childcare per week, for 38 weeks per year, from April 2024. Then, children aged from just 9 months of age will become eligible for the funding from September the same year. Together, this will benefit just shy of a million children. Lastly, starting in September 2025, children aged from 9 months to 3 years will be eligible to receive the full 30 hours per week of the free childcare, again over 38 weeks per annum, if eligible. The existing funding for 3- and 4-year-olds will continue in its current form.

Eligibility for the new, funded, hours will use the same criteria as used for the existing 30 hours scheme for 3- and 4-year-olds.

This new initiative will make a huge difference to families.

  • Firstly, of course, children will benefit by being able to begin their early years education far earlier, in many cases, than they might otherwise have been able to do. Prosocial behaviour will be boosted, self-regulation will be improved, peer relationships will benefit and there’s even less likelihood of hyperactivity amongst children who received a good education in their earliest years. A good early years education, particularly if started no later than the age of 2, is proven to be hugely important and beneficial to children. It not only gets them well ahead by the time they start school, but statistics show they are likely to attain significantly higher grades at school and in GCSEs, and are more likely to go on to study in higher education when they’re older. They will be likely to earn more once they’re adults too. Learn more about the benefits of a good early years education here.
  • With the new childcare reforms announced, parents will be able to return to work sooner after their children are born.Parents and households will also benefit hugely from this new funding. Because it will be available far earlier in their child’s life, parents will be able to return to work sooner after children are born — not long after maternity/paternity leave ends in fact. This will make a difference to mothers in particular, as many struggle being able to afford childcare when trying to get back into the workplace after becoming a parent. And, of course, it’ll allow families to boost household income.

“Almost half of non-working mothers said they would prefer to work if they could arrange suitable childcare.” (Chancellor of the Exchequer)

A Generous Increase to Universal Credit Childcare Support for Working Parents — & it’s Pre-Funded!

The Government will pre-fund the childcare support available through Universal Credit and increase the funding by almost 50%.The proposed childcare support obtained by eligible families through Universal Credit is also very generous. Families who are eligible for this particular scheme previously had to pre-fund the childcare costs and then claim them back. This meant that families, many of whom were already struggling, had to first come up with a significant chunk of money — in advance. That cash flow challenge was a real issue for many low-income families who were otherwise eligible. It’s no wonder, therefore, that only 13% of them have been claiming this form of childcare support.

With the new changes, however, the Government will pre-fund the childcare support available through Universal Credit, which should make a huge difference to the viability of the scheme for many.

Even better, though, are the rates of funding that’ll be available from July 2023. Eligible families can claim back up to 85% of their childcare costs currently, up to a maximum figure. According to the Spring Budget announcement, that maximum attainable will rise, from July 2023, from £646 per month for one child to £951 per month. For two children it will increase from £1,108 per month to £1,630. That’s almost a 50% increase in both cases and should be welcome news for eligible families. Early indications are also that the amounts may increase each year by the Consumer Price Index (CPI), until 2027-28.

Wraparound Care — Childcare Funding for Working Parents of School-Age Children

For parents of school-age children, a common difficulty arises where the child’s school day is shorter than the parent’s working day. For example, children may turn out from school at, say, 3 O’clock but parents may not leave work until 5:30 pm. In our example, that leaves at least 2½ hours — or more with travel — where childcare provision will be required. Similar mismatches between school and working hours may also arise at the start of the day. Finding and affording childcare during those mismatched hours is a real problem for many.

Pathfinder Wraparound Care will see free funding covering childcare hours at the start and finish of the day to help working parents of school-aged children.To counter this, another of the Chancellor’s announcements in the Spring Budget 2023 is to extend what’s known as ‘Wraparound Care’ for school-age children. In the new ‘Pathfinder’ approach to Wraparound Care, Government-backed childcare funding will cover childcare hours at the start and finish of the day. Parents will then be able to work for full days and not have to worry about the costs and practical challenge of childcare provision before the start and after the end of the child’s school day.

The Government will be running a pilot scheme for this new initiative over the course of the next 18 months. If successful, Wraparound Pathfinder Childcare funding will cover the time from 8am until the start of the school day and from 3pm until 6pm at the end of day, beginning in September 2024.

These new measures “will help with the cost of living, support education for the youngest children, and remove one of the biggest barriers to parents working.” (Chancellor of the Exchequer)

Funded Childcare at Leaps & Bounds Nursery, Edgbaston, Birmingham

We support all free childcare funding options for eligible families at our Edgbaston nursery/pre-school

Leaps & Bounds nursery & pre-school is in Edgbaston, Birmingham B16, near Harborne, Ladywood, Bearwood & Smethwick

Leaps & Bounds supports all current Government-funded childcare schemes for eligible families at our nursery and preschool in Edgbaston, Birmingham. We are a childcare provider offering high quality weekday childcare for babies, toddlers and under-fives and are also conveniently close for families in Harborne, Ladywood, Bearwood and Smethwick. If you’d like us to show you and your little one around, or if you’d like to register your child for a place, please get in touch using one of the options below.

The information above is given in good faith and, to our knowledge, is correct at time of writing (March 2023). However, please do your own research in case things change after publish date.

Top 10 Childcare Funding Schemes – At a Glance

Today, we shine the spotlight on what we believe are the top 10 childcare funding schemes, available in England, for eligible children. Many also apply across the whole UK or at least have similar schemes in Scotland, Wales and Northern Ireland. Some of the options are widely available, meaning easy, free funding with no need for families to jump through difficult eligibility barriers. The first two childcare funding options, for example, seem to be by far the easiest to obtain for most families. Others may suit in certain circumstances, for example if you are on benefits, studying as a student, and so on. Take a look …

The Top 10 Childcare Funding Schemes – At a Glance

Tax-free Childcare Scheme

What’s Available:
Up to £2,000 in free childcare funding is available per year, per UK child (£4,000 if the child has a disability). For children up to 11 (16 if disabled).

Eligibility:
Widely available as a parent, and partner if they have one, can each earn up to £100k per annum and still be eligible.

How Funding is Accessed:
Accessed via an online Childcare account. The parent, relative or even friend deposits 80% to fund childcare and the Government tops up the remaining 20%, free.

Click here for more information.

“15 Hours” of Free Childcare for 3 & 4-Year-Olds

What’s Available:
15 hours per week of free childcare is available for 38 weeks of the year (570 hours total) for all 3 & 4-year-olds living in England. Can be spread out in a different way if the childcare setting is flexible.

Eligibility:
Available for all children aged 3 or 4 living in England.

How Funding is Accessed:
Contact your childcare provider or apply via your local council.

Click here for more information.

“30 Hours” of Free Childcare for 3 & 4-Year-Olds

What’s Available:
30 hours per week of free childcare is available for 38 weeks of the year (1140 hours total) for eligible 3 & 4-year-olds living in England. Can be spread out in a different way if the childcare setting is flexible.

Eligibility:
Eligibility depends upon household income; generally speaking, you cannot claim if you or your partner earn £100k or over, or less than £152 per week (that figure is lower if under 23). You can usually claim through this scheme at the same time as claiming Tax-Free Childcare (or Childcare vouchers), or free childcare via Universal Credit. Other rules and exceptions apply.

How Funding is Accessed:
Apply online here.

Click here for more information.

“15 Hours” of Free Childcare for 2-Year-Olds

What’s Available:
15 hours per week of free childcare is available for 38 weeks of the year (570 hours total) for eligible 2-year-olds in England. Can be spread out in a different way if the childcare setting is flexible.

Eligibility:
Only parents receiving certain Government benefits are usually eligible to claim. Exceptions include 2-year-olds if: looked after by local authorities; subject to an ECH plan; in receipt of Disability Living Allowance; they’ve left care under certain types of order. Some non-UK citizens are also eligible in certain circumstances.

How Funding is Accessed:
Contact your childcare provider or apply via your local council.

Click here for more information.

STOP PRESS: See our later article about new childcare funding announced in the Spring Budget 2023, including funding for babies as young as 9 months of age.

Childcare Vouchers (Employer-Supported Childcare)

What’s Available:
Funding for childcare is available through participating employers, for children up to 15 or 16 if disabled. You can use up to £55 per week of your earnings, which will not be subject to National Insurance or income tax. How much you are eligible for depends on earnings and the date you joined the scheme.

Eligibility:
Closed to new applicants but still available to those enrolled before 4 October 2018 if eligible. Cannot be claimed at the same time as Tax-Free Childcare.

How Funding is Accessed:
Accessed via participating employers. Can be funded through a salary sacrifice approach.

Click here for more information.

Tax Credits for Childcare

What’s Available:
If eligible, those already claiming under the Tax Credits system can claim back up to 70% of eligible childcare costs, up to £122.50 each week for 1 child, or up to £210 per week for more than one.

Eligibility:
Closed to new applicants but existing claimants of Tax Credits may still apply. New claimants must claim instead under Universal Credit (see below).

How Funding is Accessed:
For those who are still eligible to claim, the funding is paid direct to their bank or building society account. Follow the link below for more details.

Click here for more information.

Childcare Funding through Universal Credit

What’s Available:
If eligible, you can claim back up to 85% of childcare costs, up to £646.35* per month for one child or £1108.04* each month if you are claiming for more than one.

Eligibility:
You and your partner, if you have one, must have a child under 17, be working and claiming Universal Credit. There are exceptions to the above and other eligibility terms also apply. Not available if you’re already claiming Tax-Free Childcare or Tax Credits. Earnings and savings/investments also affect how much you may receive.

How Funding is Accessed:
You need to claim back* your childcare costs (so pay for them first). You can only go back 3 months, so must keep on top of your claims.

Click here for more information.

* STOP PRESS: See our later article about new childcare funding announced in the Spring Budget 2023, including vastly improved funding through Universal Credit.

Student Childcare Grant

What’s Available:
Up to 85% of your childcare costs are available as a non-repayable grant (max. is £183.75 per week for 1 child or £315.03 per week for two+. Correct for academic year 2022/23). Payable in addition to standard undergraduate student finance.

Eligibility:
Students must be permanent residents in England, studying full-time in higher education and be eligible for undergraduate student finance based on income. They must not in receipt of a postgraduate loan. The childcare grant is for dependent children under 15 (under 17 if they have special needs). Not available if also claiming certain other childcare funding.

How Funding is Accessed:
Apply at the same time as applying for student finance via your Student Finance Account.

Click here for more information.

Learner Support Scheme

What’s Available:
What’s available depends on your specific circumstances. It’s not designed specifically to fund childcare, but can be used for it.

Eligibility:
You must be a a parent over 20, studying in further education up to and including Level 3, and facing financial hardship to be eligible.

How Funding is Accessed:
Apply via your learning provider (e.g. college).

Click here for more information.

Care to Learn Scheme

What’s Available:
Up to £160 (or £175 if living in London) is available per child, per week, for those living in England. The funding can even help to fund a taster period of up to 5 days at the childcare provider and travel to/from the provider.

Eligibility:
You must be the child’s main carer and be under 20 when you begin your course. You must be studying on a publicly-funded course (N.B. not including higher education courses at university) at specific types of education provider e.g. schools, sixth forms and some colleges. Strict rules apply around attendance of both the course and the childcare sessions.

How Funding is Accessed:
For application instructions, click here.

Click here for more information.

Funded Childcare at Leaps & Bounds Nursery & Preschool, Edgbaston, Birmingham

Our Edgbaston nursery & preschool supports all valid childcare funding options

Leaps & Bounds nursery & pre-school is in Edgbaston, Birmingham B16, near Harborne, Ladywood, Bearwood & Smethwick

Leaps & Bounds Nursery is rated as a Good Provider of childcare by Ofsted.We support all relevant childcare funding schemes for eligible families at Leaps & Bounds nursery and preschool in Edgbaston (B16). We offer the very best weekday childcare in Edgbaston, near Birmingham, Harborne, Ladywood, Bearwood and Smethwick. Please get in touch using one of the options below, for example to get started with your childcare enquiry or application. We’ll be happy to show you around, answer questions and help with your funding and nursery/preschool application.

E&OE. Please note that information is given in good faith and, to our knowledge, is correct at time of writing (November 2022). This is only a quick guide, though, so families will need to do their own. more detailed research to check for eligibility etc.

Amazing Deals for Struggling Families!

There’s no doubt that things are getting tough for families right now. However today, in our antidote to inflation, tax increases and the recent cost-of-living crisis, we bring families news of some absolutely brilliant deals, offers and ways that families can save money. What we’re talking about today may improve quality of life a little — even with something as simple as being able to afford a meal out with the kids. We were astounded by some of these discoveries, so we hope they are good news for you too.

Families: this is for you!

A few examples will help to introduce the type of money-saving offers and deals that we’ve unearthed for you in today’s post:

Did You Know?

  • You can eat out for just £1 per meal if you know where to go!
  • You can eat at home all week for just £1 per meal if you know the right recipe and supplier!
  • One famous food retailer offers interest-free shopping loans for struggling families!
  • There are lots of different Government schemes that give eligible families free childcare!

It’s amazing what’s available if you know where to look, and that’s exactly what we tell you today. We hope you find it useful.

Feeling the Pinch? Check Out The Great Deals & Offers We’ve Discovered!

Kids Under 16? Treat them to a Café Meal for just £1 Each — or Even Less!

Many of the large supermarkets are doing their bit to help struggling families, and Asda is one such example that caught our eye. They launched a £1 café offer called Kids Eat for £1 during the summer holidays and this has now been extended to the end of 2022. This seemed like a bargain to us. A list of participating ASDA cafés can be found here.

Morrison’s have a comparable deal where children under 16 can eat totally free of charge at a Morrison’s in-store café when the accompanying adult is having an adult meal costing £4.99 or more. Learn more about kids eating free at Morrison’s Cafés here. By the way, the same page also describes how Morrison’s have reduced the pricing of over half their hot food menu in their in-store cafés. It all helps!

Grandparents - Over 60s Can Eat & Drink Out for Just £1

Asda have also launched a Winter Warmers campaign aimed to help their older customers who visit their in-store cafés. Those 60 and above can enjoy soup and a roll plus unlimited cuppas for just £1 during November and December 2022. That’s a great opportunity for grandparents who are looking after little ones, although applies with or without children accompanying! Learn more about the Winter Warmers campaign for over-60s here.

Cheap But Tasty Meals at Home

Some of the supermarkets are making it easier for families to eat inexpensively at home. Sainsbury’s, for example, are currently publicising a range of recipes that will feed a family of four for no more than a fiver — that’s just £1.25 per meal. They list step-by-step instructions, list ingredients and even make it dead simple to add them to your online shopping cart. Check out some of their affordable meal suggestions here.

The BBC Food website also has a large selection of budget recipes for you to try. It’s a fantastic resource and they have gone to considerable effort to suit all tastes, including meat, vegetarian and vegan dishes. There are lots of recipes to make for just £1 per portion and ways to plan a week’s worth of meals for just £1 each. The page also gives advice on thrifty store cupboard ingredients, using air fryers and slow cookers,  and how to make food products last longer. Check out their website for some genuinely good ideas and inspiration for inexpensive eating at home.

Hot Deals on Frozen Food — Including an Interest-Free Loan!

It’s common knowledge that frozen food can work out cheaper and the retail chain Iceland are at the forefront of that niche in the UK. They are also very attuned to struggling families at the moment and so are offering several great ways to save money and make family food more affordable. For example, they have launched a major initiative called ‘Doing it Right’ and this includes a whole raft of beneficial offerings for struggling families. Many products can purchased for £1 in a ‘price freeze’, for example. It also includes discounts of over 60s on Tuesdays, money-saving 7-Day Deals, an exclusive Bonus Card scheme to save money on your favourite products and much more. A synopsis of all the main offers is available here.

A notable and innovative service was also introduced by Iceland in August 2022 to help families struggling to afford food (often those who relied on food banks and even loan shark loans). ‘The Iceland Food Club’ allows families to spread the cost of food through micro-loans between £25 and £100, using a pre-loaded card that allows them to spend the interest-free loan at Iceland food stores. Repayment is made at £10 per week and, as we say, the loan is interest-free. Well done Iceland! Learn more about the scheme here.

N.B. this information is given in good faith and does not constitute financial advice. Readers will need to do their own research.

Accumulate £££s to Redeem Against Your Shopping Bill

By the way, Asda also offers a “Rewards” scheme where you accumulate pounds (not points!) when you shop there. When accumulated, these can be redeemed against your shopping, thereby reducing your bill in a really tangible way. We know people who use this scheme and it seems to be a decent one so far as we can tell. Check out the Asda Rewards scheme here.

Save Money on Energy Costs

Octopus Energy has doubled its OctoAssist Fund, for customers struggling with their bills. They are offering help via direct financial support, standing charge waivers and energy saving support. Check out if you are eligible for any help and read their saver suggestions here.

Meanwhile, Utilita have teamed up with Iceland to help you Shop Smart and Cook Savvy, explaining ways to save you money. This includes advice on ways to reduce your energy bill through use, for example, of air fryers and energy-saving measures. (Click the bold links for more information). Via their app “My Utilita” you can also take control of your energy use, use pay-as-you-go and apply for emergency credit. Learn more here.

Baby Banks — Free Stuff for Families

Don’t forget to check out our Baby Banks post from May 2022 too (see the link below). There, we explained how struggling parents can get a huge variety of free things for their babies and children. Everything from baby food and nappies to high chairs and buggies is available, totally free of charge. Indeed, Baby Banks are a complete godsend for many struggling families. They’re also somewhere you can donate your pre-loved items that you’ve finished with, to help another family. Learn more about Baby Banks, including some near Edgbaston and Birmingham, here.

Childcare Funding Help

Childcare funding is an option we can help with directly at Leaps & Bounds Day Nursery. Subject to eligibility, we support all the key Government schemes for free childcare funding including free childcare for 2-year-olds, free childcare funding for 3 & 4-year-olds, student childcare grants, tax-free childcare, childcare vouchers & more. Feel free to ask our staff for advice on any of these and we’ll be happy to help. If you are outside our area (Edgbaston, Birmingham), the bold links to free childcare funding articles may still be useful to give you an overview of the schemes, so please feel free to click through, bookmark and share.

A Funded Childcare Place for Your Child at Leaps & Bounds Nursery, Edgbaston, Birmingham

Leaps & Bounds nursery & pre-school is in Edgbaston, Birmingham B16, near Harborne, Ladywood, Bearwood & Smethwick

Leaps & Bounds Nursery is rated as a Good Provider of childcare by Ofsted. Please get in touch with us if you are eligible for any of the free childcare funding options and require a nursery or pre-school place for your child at Leaps & Bounds Day Nursery. We are a high quality nursery and pre-school in Edgbaston, Birmingham, near Harborne, Ladywood, Bearwood and Smethwick. Please choose one of the options below to register for a nursery place, book a guided tour or ask a question. We look forward to hearing from you.

IMPORTANT: The above seemed amazing to us, but please ensure you check the websites and suppliers direct, as some things are time-limited and/or may be subject to change. Also, we have no affiliation with, or control over, the 3rd party offerings mentioned. As such, we cannot guarantee the details but, to the best of our knowledge, we believe they were correct at time of writing (Nov 2022).

Free Childcare Grant for Students

A free childcare grant is available to eligible students who are also parents.Did you know that there is a free childcare grant available to students who are also parents? This could be a game-changer for you if you are thinking about enrolling in a further education course and have a child. One major consideration will be that you’ll need to arrange childcare for your child while you are learning, so you can give your course your full attention while in attendance. However, childcare costs money, so may be a real concern. Indeed, it could be a deciding factor as to whether the whole studying idea is even viable.

Well, there is good news for undergraduate students who have a child under the age of 15 (17 if they have special educational needs). Under a UK Government scheme, you may be eligible for a grant to cover a big chunk of your childcare costs and, actually, it’s quite generous.

How Much is the Childcare Grant for Students?

Eligible students can get a grant worth up to 85% of their childcare costs.Eligible students can get a grant worth up to 85% of their childcare costs during study. Even better — it does not need to be paid back and is in addition to other student finance. One of the stipulations, in fact, is that you must be eligible for student finance in order to be eligible for a student Childcare Grant.

For a parent with one dependent child, this could amount to as much as £179.62 per week or, for two or more children, up to £307.95 per week*. That’s all so long as this is no more than 85% of your childcare costs. If it is, then the lower (85%) amount applies. Either way, though, you’ll have to pay for the remainder of the childcare costs.

* Figures are correct, at time of writing, for the academic year 2021-2022.

Additional Rules Around Eligibility

In addition to the rules already confirmed above, several other factors affect eligibility for the student Childcare Grant:

  • Eligible students need not juggle looking after their little one with study.The childcare provider must be officially registered as such with Ofsted or the General Childcare Register;
  • They must not be related if the childcare is to take place at home;
  • The child or children being claimed for must be financially dependent upon you, the applicant;
  • You must be a permanent UK resident and be studying full-time;
  • You must receive, or be eligible to receive, undergraduate student finance based on household income.

You are not eligible if:

  • You or your partner receive childcare funding help from the NHS;
  • You or your partner claim the childcare part of Working Tax Credit or Universal Credit, or claim Tax-Free Childcare;
  • You are receiving a Postgraduate Loan.

How to Apply for the Childcare Grant

Apply for a Childcare Grant and have much of your childcare costs covered.You should apply for the Childcare Grant for students as part of the process of applying for your main undergraduate student finance. You’ll need to set up a Childcare Grant Payment Service (CCGPS) account too. You will receive instructions on how to do so, along with confirmation of how much you’ll get for the Childcare Grant, once you’ve started the process.

All of the above is usually done online. However, should you want to retrospectively apply for the Childcare Grant having already applied for student finance, you can use a paper form. You can also do this should you wish to make an application for an additional child later on. More details about applying for the Childcare Grant for students is available here.

How the Childcare Grant is Paid

You are not paid directly. Instead, the grant gets paid to the childcare setting you are using for your childcare. They apply to be paid out of the CCGPS account that you set up after applying for the grant. You need to approve the payments by logging into your CCGPS account on a weekly basis once your course has started.

A Great Nursery for Student Parents: Leaps & Bounds Day Nursery, Edgbaston

Leaps & Bounds Day Nursery, Edgbaston, Birmingham B16

Leaps & Bounds Nursery is rated as a Good Provider of childcare by Ofsted.If you are a student parent or are considering studying somewhere local to Edgbaston or Birmingham, we have your childcare needs covered! Leaps & Bounds Day Nursery is based in Edgbaston, so is within easy reach of the University of Birmingham, Moss House (University College Birmingham), Edgbaston College, South & City College Birmingham, Sparkhill Adult Education Centre, Birmingham Adult Education Service, Saltley Learning Centre, Selly Oak Learning Centre, Joseph Chamberlain Adult Learning Centre, the Midlands Arts Centre and Northfield Education Centre amongst others. We’d be delighted to look after your baby, toddler or under-five child on weekdays when you attend your further education sessions. We’re also a Forest School (great for kids who enjoy the Great Outdoors and nature). Choose a button below to find out more or to arrange a visit:

Apply for a Place Book a Tour Contact Us 0121 246 4922

Main photo: Gavin Warrins (Public domain)

Free childcare funding for 2 year olds

Parents of very young children may have heard of free childcare funding for 2 year olds. However, exactly how many funded hours are available for 2 year olds? How does it work? How do you apply for the funding and what exactly is on offer? Also, is the funding still available during the Coronavirus outbreak? This article is here to explain virtually everything you need to know about free/funded hours for childcare, specifically for 2 year olds. Take a few moments and we’ll cover the key points for you.

We’ll limit this article to the rules for only UK residents who require childcare for 2 year olds in England, seeing as that’s where our customer base and nursery are located. (We are a nursery and pre-school in Edgbaston, near Birmingham). We cover funding rules for 3 and 4 year old children in a separate article.

Free early years education or childcare funding for 2 year olds

Firstly, it’s important to know that the number of free/funded hours available for early years childcare largely depends on the age of the child concerned. In a nutshell, 2 year olds may be eligible for up to up to 15 hours of free childcare/early education per week. Eligibility depends on a variety of additional factors, as we’ll see.

Eligible children aged two years of age are entitled to up to 570 hours of free childcare or early education per year. This is usually taken as 15 hours per week spread over 38 weeks of the year. However, exactly how it’s taken can be flexible in reality. In order to be eligible, the child must fall into a qualifying category of ‘additional needs’. Alternatively, the parent(s) must be in receipt of a qualifying benefit.

Qualifying benefits

Those who receive the following benefits may be eligible: income-related JSA (Jobseeker’s Allowance); income-related ESA (Employment & Support Allowance); Income Support; Universal Credit (for low parent/partner income e.g. if it’s less than £15,400 per annum after tax); Tax Credits (for low family income e.g. if it’s less than £16,190 before tax); State Pension Credit (the guaranteed part); Working Tax Credit ‘4 week run-on‘ payments that are received after eligibility for Working Tax Credit has ceased; and finally support via ‘Part 6’ of the Immigration & Asylum Act. (That’s typically where a parent is claiming asylum but has not yet received a decision).

What if you later stop receiving benefits?

What happens if your 2 year old is already receiving 15 hours of free childcare/early education but you later stop being eligible to receive the relevant benefits above? Your child will usually continue to receive free childcare, despite the change in your circumstances.

Other categories for eligibility

Those who don’t qualify for the benefits above may still qualify if: the child is being looked after by the council; they’re in receipt of Disability Living Allowance (‘DLA’); they have a statement of Special Education Needs (‘SEN’); they have an Education, Health & Care Plan (‘EHC’); or they are no longer in living in care, having left under a Child Arrangements or Adoption Order or Special Guardianship Order.

When can you apply for free childcare funding for 2 year olds?

You can apply for free childcare/early education for your 2 year old during the term in which they first reach the age of 2. However, your child will need to wait until the start of the following term before they can actually attend. In practice, therefore, this usually means that your 2 year old can start attending from 1st of January/April/September following their 2nd birthday.

Who receives the actual funds?

The Government funding for 2 year olds goes directly from the local council to the setting, not to the parent or child. You will need to sign a form, which is usually supplied by the childcare provider.

The Government’s childcare/early years funding does not cover additional items like meals, nappies and suchlike. So, it’s important to check whether this is included at your nursery or early years education setting.

Can those on NRPF visas receive childcare funding?

Some parents or primary carers may fall into category where, on the face of it, they are not eligible for any of the benefits above. One common example is when they are subject to immigration control. Here, they may be claiming asylum but have not yet received a decision. However, if they are on what’s known as an NRPF visa (a ‘no recourse to public funds’ visa), they may still be eligible for funding for 2 year olds in certain cases.

How do you apply for 2 year old childcare funding?

It would be wise to contact Leaps & Bounds Day Nursery to discuss your potential application in the first instance. Funding will come from the Government, but will be filtered down via your local council. You can make your application via HM Government’s ‘Childcare Choices’ portal.

Is funding for 2 year olds impacted by Coronavirus/COVID-19?

Encouragingly, the Government has announced that free funding for 2 year olds will continue to be available despite nursery closures (from Friday 20th March for most*) caused by the Coronavirus outbreak. (More info). Gavin Williamson, the Education Secretary, said,

“… we will continue to pay for all free early years entitlements places, even in the event that settings are closed on the advice of Public Health England, or children are not able to attend due to coronavirus“.

*Schools, colleges and nurseries (including Leaps & Bounds) will close from Friday 20th, until otherwise directed by the Government. That’s except for children of key workers, such as NHS staff and emergency workers, and vulnerable children. (More info). We’ll publish more details on this topic in the next few hours.

Looking for free childcare funding for 3-4 year olds?

Do you have a child aged three or four that requires childcare services? We wrote a detailed article about free childcare funding for 3 & 4 year olds here (click to learn more).

Contact us for further information

To discuss any of the above with the staff at Leaps & Bounds Day Nursery in Edgbaston, Birmingham, please call 0121 246 4922 or .