Childcare Funding Explained: A Simple Guide for 2026
We know that nursery, preschool and childcare costs can be a real worry for families. The good news is that the UK government offers a range of childcare funding schemes designed to support you with early years costs, and our My Ohana nurseries will gladly accept funded places.
The many different entitlements and eligibility criteria can feel confusing - especially if this is your first child or your first time using funded childcare. This guide breaks it all down in simple language so you can feel confident and informed.
No jargon. No assumptions. Just clear, factual information so you can plan your childcare with confidence.
Contents
You may be able to get free childcare if you live in England and have a child aged 9 months to 4 years.
Funded childcare must be used with a registered provider – such as a nursery, preschool or playscheme – known as 'approved childcare'.
Different schemes apply if you live in Scotland, Wales, or Northern Ireland. Click the links below for government funding options across the UK:
Childcare Funding for Babies and Toddlers (0–3 Years)
Funded Childcare for Working Parents (From 9 Months)
From September 2025 onwards, eligible working parents in England can access up to 30 hours of funded childcare per week for children aged from 9 months until they start school.
This is one of the biggest changes to early years funding in recent decades and is designed to help parents balance work and family life while keeping childcare affordable.
To qualify:
You (and your partner, if you have one) must be in paid work, or temporarily away from work on maternity, paternity, adoption or sick leave
Each parent must earn at least the equivalent of 16 hours per week at National Minimum or Living Wage
Neither parent can earn more than £100,000 adjusted net income per year
If eligible, funding starts the term after your child turns 9 months old.
Additional Support for Some 2-Year-Olds
Some families may qualify for 15 hours of funded childcare per week for their 2-year-old even if they are not working.
This applies if you receive certain government benefits or if your child:
Has an Education, Health and Care (EHC) plan
Receives Disability Living Allowance (DLA)
This funding begins the term after your child turns two and is arranged through your local authority.
Childcare Funding for Children Aged 3 and 4
Universal 15 Hours (Available to All Families)
All children in England are entitled to 15 hours of funded early education per week from the term after their third birthday.
This is known as universal funding and applies:
Regardless of income
Whether parents are working or not
These hours can be used with registered childcare providers such as nurseries, preschools and childminders.
Extended 30 Hours for Working Families
If you meet the working-parent criteria outlined earlier, your child may be entitled to 30 funded hours per week instead of 15.
In simple terms:
15 hours – available to all 3 and 4-year-olds
30 hours – available to eligible working families
Funding begins the term after your child turns three and continues until they start school.
How Funding Is Applied Throughout the Year
Government funding is calculated annually:
15 hours funding = 570 hours per year
30 hours funding = 1,140 hours per year
By default, the government bases these hours on 38 weeks (term time). However, nurseries are allowed to stretch those hours across more weeks.
At My Ohana, funded hours are spread over 51 weeks, helping families benefit from consistent childcare rather than only during term time.
This means:
15 funded hours equates to 11.2 hours per week when stretched
30 funded hours equates to 22.4 hours per week when stretched
Funding can usually be used for up to 10 hours per day, depending on your child’s attendance pattern.
When and How to Apply for Childcare Funding
When to Apply for Free Childcare?
Timing your application correctly is important to make sure your funding starts when you need it.
You can apply for funded childcare once your child is 23 weeks old. This applies to the working-parent entitlement (15 or 30 funded hours).
Your funded hours don’t start straight away - they begin from the term after your child turns 9 months old, in line with standard GOV.UK term dates (January, April or September).
Example: If your child was born on 1 May
You can apply from around late-October (when your child is 23 weeks old)
Your child becomes eligible for funded hours from the April term, after they turn 9 months old
Here’s a table to help you work out when you can apply:
| Child Turns 9 Months | Free Hours Begin | Apply By |
|---|---|---|
| 1 September – 31 December | January Term | 31 December |
| 1 January – 31 March | April Term | 31 March |
| 1 April – 31 August | September Term | 31 August |
How to Apply for Free Childcare
Applying for government-funded childcare is straightforward – here’s how to get started:
Check Your Eligibility
Head to the Childcare Choices website and use their free eligibility checker to see if you qualify for funded hours.
Set Up a Childcare Account
To apply, you’ll need to create a Childcare Account through the Government Gateway. This account lets you manage your application and keep track of your childcare entitlements.
Complete Your Application
When filling in the form, you’ll be asked to provide some key details, including:
Your National Insurance number
Your child’s birth certificate reference number
Details of any government support you receive
Your Unique Taxpayer Reference (if you’re self-employed)
Receive Your Code
If your application is successful, you’ll be sent an 11-digit code. Share this with your nursery or childcare provider, along with your National Insurance number and your child’s date of birth.
Reconfirm Every 3 Months
To keep receiving funded hours, you must reconfirm your details every three months via your online account. If you miss a reconfirmation, your funding could be temporarily paused.
Tax-Free Childcare Explained
Tax-Free Childcare is a separate government scheme that helps families cover childcare costs not included in funded hours.
For every £8 you pay into your childcare account, the government adds £2, up to:
£2,000 per child per year
£4,000 per year for children with disabilities
You can use Tax-Free Childcare alongside funded childcare hours, making it a helpful way to manage additional costs.
Children are eligible up to:
Age 12 (or 17 if disabled)
To qualify, parents must:
Be working
Meet the minimum earnings threshold
Earn under £100,000 per year
Eligibility must be reconfirmed every three months.
Additional Costs and Considerations
While the 30 hours are free, there may still be extra costs, such as:
Meals
Nappies and wipes
Outings and enrichment activities
Extra hours beyond your entitlement
Providers are not allowed to charge top-up fees for the funded hours themselves, but it's always best to check what’s included.
At My Ohana, we aim to make all additional costs clear from the start. We’re also happy to talk through payment plans and funding options.
At My Ohana:
There are no top-up fees for funded hours
Fees are all-inclusive, covering meals, activities and care
You only pay for hours attended beyond your funded entitlement
Your invoice clearly shows:
Total hours attended
Funded hours deducted
Any remaining balance
Does My Ohana Accept Funded Places?
Yes! We accept funded places at many of our nurseries. You’ll need to provide your eligibility code and an authorisation letter from your Local Authority.
Availability varies by location, so we recommend reaching out to your local My Ohana nursery as early as possible to secure your child’s place.
Government Funded Childcare: FAQs
Who is eligible for 30 hours of free childcare?
From September 2025, eligible working parents in England with children aged from 9 months to 4 years may be able to access up to 30 hours of government-funded childcare per week (1,140 hours per year).
To qualify, you (and your partner, if you have one) must:
Each earn at least the equivalent of 16 hours per week at the National Minimum or Living Wage
Earn less than £100,000 adjusted net income per year
Live in England and use an approved childcare provider
You may still be eligible if you’re temporarily not working because you are on maternity, paternity, adoption or sick leave, or if you receive certain disability or carer benefits.
Do both parents have to work to get Tax-Free Childcare?
Usually, yes. Both parents (or the sole parent in a single-parent household) must be in paid work to qualify for Tax-Free Childcare.
However, you can still apply if one parent works and the other is:
On maternity, paternity or adoption leave
Unable to work due to disability
Unable to work because of caring responsibilities
These exceptions apply to both Tax-Free Childcare and the 30 hours funded childcare entitlement.
Who gets 15 hours of free childcare in the UK?
In England, all families with children aged 3 and 4 are entitled to 15 hours of funded childcare per week, regardless of income or employment status.
Childcare funding has expanded in recent years:
From April 2024 – working parents of 2-year-olds became eligible for 15 hours
From September 2024 – working parents of children from 9 months became eligible for 15 hours
From September 2025 – eligible working parents can access 30 hours per week from 9 months to 4 years, replacing the earlier 15-hour working-parent entitlement
Families receiving certain benefits may also be entitled to 15 funded hours for 2-year-olds, even if they are not working.
Can I use Tax-Free Childcare and 30 free hours together?
Yes. You can use Tax-Free Childcare alongside your funded hours.
Your funded hours cover a set amount of childcare each week, while Tax-Free Childcare can help with additional costs such as:
Extra childcare hours
Meals
Other chargeable extras
When should I apply for free childcare?
You can apply for funded childcare once your child is 23 weeks old.
Funded hours begin from the term after your child turns 9 months old, so it’s a good idea to apply well in advance to make sure your eligibility code is ready in time.
What if I or my partner earn over £100,000?
If either parent earns over £100,000 adjusted net income in the current tax year, your household will not be eligible for:
30 hours of funded childcare
Tax-Free Childcare
However, you may still be entitled to the universal 15 hours for 3 and 4-year-olds.
Do I need to reapply each term?
You don’t need to make a new application each term, but you must reconfirm your details every three months through your Childcare Account.
If you forget to reconfirm, your funding may be temporarily paused until your details are updated.
Can I use my funded hours across more than one childcare provider?
Yes. You can split your funded hours between multiple approved providers, such as a nursery and a childminder, as long as all providers agree how the hours are shared.
How do I know if my nursery accepts funded childcare?
Most registered childcare providers accept funded hours, but availability can vary.
At My Ohana, we accept funded places at many of our nurseries. You’ll need to provide your eligibility code and any documentation required by your local authority. We recommend contacting your chosen nursery as early as possible to secure a place.
Childcare funding can make a meaningful difference to family life – not just financially, but emotionally too. Understanding what you’re entitled to helps you plan with confidence and focus on what matters most: your child’s early years.
If you’re unsure which funding applies to your family, speak to your local My Ohana nursery or visit Childcare Choices for the most up-to-date guidance.
We’re here to support you every step of the way.
