Funding at a glance

This quick reference summarises the main government childcare funding entitlements you can offer to parents. Check eligibility and claiming processes below.

All 3 and 4 year olds in England are entitled to 15 hours of free early education per week, for 38 weeks per year (570 hours total). This is universal - no income requirements.

Disadvantaged 2 year olds are also eligible for a targeted 15 free hours - for example where the family receives Universal Credit with household income under £15,400, the child is looked after or has left care through adoption or special guardianship, or the child has an EHC plan or receives DLA. This targeted entitlement is separate from the working-parent entitlement.

Entitlement (3-4 year olds): 15 hours per week, 38 weeks per year (570 hours)
When entitlement starts: Term after child's 3rd birthday
2 year old eligibility (targeted): Universal Credit with household income under £15,400 (or equivalent benefits), child looked after or left care through adoption/special guardianship, OR child has EHC plan/receives DLA
Stretching hours: Can stretch 570 hours across more weeks (e.g., 11 hours for 51 weeks)
Provider funding rate (3-4s): 2026-27 national average £6.42 per hour - actual rate set by your local authority
Provider funding rate (2s): 2026-27 national average £8.90 per hour - actual rate set by your local authority

Sign agreement with local authority: To claim funding, you must have a Provider Agreement with your local authority. Contact your local authority's early years team.
Complete headcount returns: Submit headcount data each term (January, May, September) through your local authority portal. This confirms how many funded children you have.
Check parent eligibility codes: For extended entitlements (30 hours), verify parents' eligibility codes using the Provider Portal before offering funded places.

Early education and childcare (opens in a new tab)

15 hours universal entitlement

The universal 15 hours is available to all 3-4 year olds regardless of parents' working status. A separate targeted 15 hours covers disadvantaged 2 year olds (for example families receiving universal credit with income under GBP 15,400, children with an EHC plan, or looked-after children). Term-time only (38 weeks) or stretched across the year.

All 3 and 4 year olds in England are entitled to 15 hours of free early education per week, for 38 weeks per year (570 hours total). This is universal - no income requirements.

Entitlement (3-4 year olds): 15 hours per week, 38 weeks per year (570 hours)
When entitlement starts: Term after child's 3rd birthday
2 year old eligibility (targeted): Universal Credit with household income under £15,400 (or equivalent benefits), child looked after or left care through adoption/special guardianship, OR child has EHC plan/receives DLA
Stretching hours: Can stretch 570 hours across more weeks (e.g., 11 hours for 51 weeks)
Provider funding rate (3-4s): 2026-27 national average £6.42 per hour - actual rate set by your local authority
Provider funding rate (2s): 2026-27 national average £8.90 per hour - actual rate set by your local authority

Sign agreement with local authority: To claim funding, you must have a Provider Agreement with your local authority. Contact your local authority's early years team.
Complete headcount returns: Submit headcount data each term (January, May, September) through your local authority portal. This confirms how many funded children you have.
Check parent eligibility codes: For extended entitlements (30 hours), verify parents' eligibility codes using the Provider Portal before offering funded places.

Early education and childcare (opens in a new tab)

30 hours extended entitlement

For working parents of children from 9 months old to school age - fully rolled out since September 2025. Parents must apply for an eligibility code which you verify with your local authority before claiming.

Working parents in England can get 30 hours of free childcare per week, 38 weeks per year (1,140 hours total), for children from 9 months old until they start school. The entitlement has been fully rolled out since September 2025. Both parents must be working (or single parent working).

The detailed eligibility rules are set out in the Childcare (Early Years Provision Free of Charge) (Extended Entitlement) Regulations 2016 (SI 2016/1257), as amended.

Entitlement: 30 hours per week, 38 weeks per year (1,140 hours), from 9 months to school age
Minimum expected earnings per parent: £2,643.68 over the next 3 months (16 hours per week at National Minimum Wage, aged 21+, from April 2026)
Maximum adjusted net income per parent: £100,000 adjusted net income
Both parents must work: Yes (if couple) - exceptions for disability/caring responsibilities
Reconfirmation requirement: Every 3 months via Childcare Service account
Code validity for providers: Valid codes can be checked on Provider Portal

Direct parents to apply: Parents apply through the Childcare Service (gov.uk). They receive an eligibility code to give to you.
Verify eligibility codes: Check codes on the Provider Portal before offering 30-hour places. Codes show validity period and any grace period.
Remind parents to reconfirm: Parents must reconfirm every 3 months. If they don't, they enter a grace period and may lose extended hours.

30 hours free childcare (opens in a new tab)

Under-2 entitlement

Working parents are entitled to 30 funded hours from 9 months old - the rollout completed in September 2025, so this is now fully in force. Check current eligibility criteria with your local authority.

Working parents of children from 9 months old are entitled to 30 hours of free childcare per week, 38 weeks per year. The entitlement has been fully rolled out since September 2025 - there is no remaining phase-in.

Entitlement (9 months to school age): 30 hours per week, 38 weeks per year, for working parents (since September 2025)
Eligibility criteria: Same as 30 hours: each parent expects at least £2,643.68 over the next 3 months, adjusted net income no more than £100,000
Provider funding rate (under 2s): 2026-27 national average £12.04 per hour - actual rate set by your local authority

How the entitlement rolled out (now complete):

April 2024: 15 hours for working parents of 2 year olds
September 2024: 15 hours for working parents of children from 9 months
September 2025: full 30 hours for working parents of children from 9 months to school age

Help paying for childcare (opens in a new tab)

Tax-Free Childcare

Government tops up parent payments by 25%. Parents pay into a childcare account and the government adds GBP 2 for every GBP 8 paid, up to GBP 2,000 per child per year (GBP 4,000 for disabled children). Each parent must have adjusted net income of GBP 100,000 or less.

Tax-Free Childcare, established by the Childcare Payments Act 2014, provides a government top-up of £2 for every £8 parents pay into a childcare account (a 25% top-up on the parent's payment). Parents can use it to pay any approved childcare provider - including Ofsted-registered providers and nannies registered on the voluntary part of the Childcare Register.

Government contribution: £2 for every £8 paid by parent (25% top-up on the parent's payment)
Maximum annual top-up: £2,000 per child (£500 per quarter)
Maximum for disabled children: £4,000 per year (£1,000 per quarter)
Can combine with 30 hours?: YES - can use both schemes together
Cannot combine with: Tax Credits, Universal Credit childcare element
Provider requirement: Must be approved childcare - Ofsted-registered (including nannies on the voluntary part of the Childcare Register), or registered with the Care Inspectorate in Scotland

Set up your provider account: Register on the Childcare Service Provider Portal to receive Tax-Free Childcare payments from parents.
Provide your URN to parents: Parents need your Ofsted URN to set up payments to you through their Tax-Free Childcare account.
Process payments: Payments from Tax-Free Childcare accounts are typically received within 3 working days.

Tax-Free Childcare (opens in a new tab)

Full funding guide for providers

Detailed guidance on provider agreements, funding rates, headcount processes, and top-up fee rules.

Start a childcare business

Setting up your business to accept government-funded childcare, including local authority agreements.

Childcare funding entitlements quick reference

Full funding guide for providers

Start a childcare business

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