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.

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:

• Free childcare in Scotland
• Free childcare in Wales
• Free childcare in Northern Ireland

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, and 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 are available to all 3 and 4-year-olds, and 30 hours are 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, and 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, and 30 funded hours equates to 22.4 hours per week when stretched. Funding can only be applied for a maximum of 10 hours per day.

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).

For example, if your child was born on 1 May, you can apply from around late October (when your child is 23 weeks old), and your child becomes eligible for funded hours from the April term, after they turn 9 months old.

Here’s a guide to help you work out when you can apply:

• Child turns 9 months 1 September – 31 December → free hours begin the January term (apply by 31 December)
• Child turns 9 months 1 January – 31 March → free hours begin the April term (apply by 31 March)
• Child turns 9 months 1 April – 31 August → free hours begin the September term (apply by 31 August)

How to Apply for Free Childcare

• Check your eligibility, head to the Childcare Choices website and use their free eligibility checker.
• Set up a Childcare Account, create one through the Government Gateway to manage your application and entitlements.
• Complete your application, you’ll need your National Insurance number, your child’s birth certificate reference number, details of any government support you receive, and your Unique Taxpayer Reference (if self-employed).
• Receive your code, if successful, you’ll get an 11-digit code to share with your provider, along with your National Insurance number and your child’s date of birth.
• Reconfirm every 3 months, to keep receiving funded hours, reconfirm your details every three months via your online account.

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. Children are eligible up to age 12 (or 17 if disabled). To qualify, parents must be working, meet the minimum earnings threshold and earn under £100,000 per year. Eligibility must be reconfirmed every three months.

Additional Costs and Considerations

Government-funded hours cover the cost of your child's care. They do not cover additional items such as:

• Meals and drinks, including formula milk
• Non-food consumables such as nappies, wipes, nappy cream and sun cream
• Extra-curricular activities that take place at nursery
• Extra hours beyond your funded entitlement

At My Ohana, these items are covered by a separate, voluntary consumable charge during funded sessions. You can choose to provide your own food and consumables instead, and opting out will never affect your child's funded place with us.

We do not charge top-up fees for funded hours. Full details of any applicable consumable charges can be found on your nursery's fee sheet.

Our Payment and Funding Options Explained

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. 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, or unable to work because of caring responsibilities.

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. 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 and 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 or 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.

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.

We’re here to support you every step of the way.

Get in Touch!