Childcare funding for three to four year-olds

All children are entitled to the universal 15 hours free childcare from the term following their third birthday.

All maintained nursery schools, most day nurseries and pre-schools and some childminders offer funded childcare places.

Your entitlement:

• 570 hours per year
• maximum of 15 hours per week over 38 weeks per year (term time)
• some providers can offer fewer hours per week but for more weeks of the year

You may be entitled to an additional 15 hours childcare place for your three or four-year-old for 38 weeks per year if you are:

• a two-parent family, both working and each earns the equivalent of 16 hours per week paid at the national living wage
• each earning less than £100,000 per year

Disability Access Fund (DAF)

The Disability Access Fund (DAF) is funding for early years providers to support children with disabilities or special educational needs. It supports providers to make reasonable adjustments to their settings.

To be eligible for DAF, 3 and 4 year olds must meet the following criteria:

• the child is in receipt of Disability Living Allowance (DLA), AND
• the child is in receipt of the Early Years Funding universal 15 hours entitlement (no minimum number of hours is required)

Tax-Free Childcare

You can get up to £500 every 3 months (up to £2,000 a year) for each of your children to help with the costs of childcare. This goes up to £1,000 every 3 months if a child is disabled (up to £4,000 a year).

If you get Tax-Free Childcare, you’ll set up an online childcare account for your child. For every £8 you pay into this account, the government will pay in £2 to use to pay your provider.

You can get Tax-Free Childcare at the same time as 30 hours free childcare if you’re eligible for both.

Childcare funding for two-year-olds

You may be able to claim up to 15 hours childcare over 38 weeks for your two-year-old from the term after their second birthday if you receive:

• Income Support
• income-based Jobseekers Allowance
• income-related employment and support allowance
• Child Tax Credit or Working Tax Credit if your annual household income is below £16,190
• the guaranteed element of State Pension Credit
• support under Part VI of the Immigration and Asylum Act 1999
• Universal Credit if your annual net earned income is less than £15,400

OR your child:

• is looked after by the local authority
• has left care through special guardianship or an adoption or residence order
• has a current statement of special educational needs or an education, health and care plan
• qualifies for Disability Living Allowance

Additional extended criteria from September 2022:
If your immigration status says you have ‘no recourse to public funds’ (NRPF), you may be able to access a funded childcare place for your 2 year old if you:

• live in England and your annual household income is no more than:
  • £26,500 for families outside of London with one child
  • £30,600 for families outside of London with two or more children
• have no more than £16,000 in savings or investments

Early Years Pupil Premium (EYPP)

Your childcare provider may be able to claim extra funding to enhance the quality of your child’s early education.

Your child will be eligible for the Early Years Pupil Premium if you are in receipt of one or more of the following benefits or credits:

• Income Support
• income-based Jobseekers Allowance
• income-related employment and support allowance
• support under Part VI of the Immigration and Asylum Act 1999
• the guaranteed element of State Pension Credit
• Child Tax Credit, but not Working Tax Credit, with an annual gross income of no more than £16,190
• Working Tax Credit run-on – paid for four weeks after you stop qualifying for Working Tax Credit
• Universal Credit – if the child is born on or after 1 January 2015 and the parent is entitled to Universal Credit, they must have an annual net earned income equivalent to and not exceeding £7,400, assessed on up to three of the parent’s most recent Universal Credit assessment periods.

OR the child has:

• been looked after by the local authority for at least one day
• been adopted from care
• left care through special guardianship
• a child arrangement order

Tax Credits for childcare

Tax Credits for childcare is for working families, including the self-employed, in the UK:

• Who are earning under £100k and at least £152 per week (equal to 16 hours at the National Minimum or Living Wage) each
• Who aren’t receiving Tax Credits, Universal Credit or childcare vouchers
• With children aged 0-11 (or 0-16 if disabled)

For every £8 you pay into an online account, the government will add an extra £2, up to £2,000 per child per year.