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.
“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.
“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.
“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.
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.
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.
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).
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.
Funded Childcare at Leaps & Bounds Nursery & Preschool, Edgbaston, Birmingham
Our Edgbaston nursery & preschool supports all valid childcare funding options
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.
