Apply for 2-Year-Old Funding Online: Step-by-Step Guide for Parents

Childcare costs can put real pressure on family finances. The good news is the UK government now offers funded childcare hours for eligible 2-year-olds, and the application process is entirely online. Whether you're a working parent or receive certain benefits, this guide walks you through everything you need to know from checking your eligibility to handing over your code at the nursery gate.

If you're based in Leyland or the surrounding area and considering a nursery place, the team at Little Mowgli Nursery are always happy to answer questions about funded hours.

‍

What Is 2-Year-Old Funding?

The government's free childcare scheme gives eligible 2-year-olds access to up to 15 hours of funded early education per week, typically over 38 weeks of the year. That works out to up to 570 funded hours annually.

There are two separate routes to qualify, depending on your situation:

1. Working Families Route Since April 2024, eligible working parents with a 2-year-old have been able to claim 15 hours of funded childcare per week. From September 2025, this entitlement increased to 30 hours per week for eligible working parents with children aged 9 months to school age.

2. Benefits-Based (Supported Families) Route Families receiving certain means-tested benefits can also access 15 funded hours per week for their 2-year-old, regardless of employment status.

The two routes are managed differently, so it's worth understanding which one applies to you before you start your application.

‍

Who Is Eligible for 2-Year-Old Childcare Funding?

Working Parents Eligibility

To qualify under the working families route, you and your partner (if you have one) must each:

• Earn at least the equivalent of 16 hours per week at the National Minimum Wage (roughly £195 per week or £10,158 per year from April 2025)
• Each earn less than £100,000 adjusted net income per year

You may still be eligible if one of you is on maternity, paternity, or adoption leave, or if you are unable to work due to a disability or caring responsibilities.

Benefits-Based Eligibility

Your 2-year-old may qualify through the supported families route if you receive any of the following:

• Universal Credit, where your combined household income from work is £15,400 or less per year after tax
• Income Support
• Income-based Jobseeker's Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Tax Credits, where your annual household income is £16,190 or less
• Working Tax Credit 4-week run-on (the payment you receive when you stop qualifying for Working Tax Credit)
• The guaranteed element of Pension Credit
• Support under Part 6 of the Immigration and Asylum Act 1999

Children in the care of the local authority, or who have a current statement of special educational needs (SEN) or an Education, Health and Care (EHC) plan, may also be eligible.

‍

When Can Your Child Start Their Funded Place?

Your child can begin their funded childcare from the start of the term after their second birthday. The three funding terms in England begin on:

• 1 January (Spring Term)
• 1 April (Summer Term)
• 1 September (Autumn Term)

So if your child turns 2 on 15 March, they would be able to start their funded place from 1 April. If they turn 2 on 5 September, their funded hours would begin from 1 January the following year.

‍

How to Apply for 2-Year-Old Funding Online: Step by Step

The application process depends on which route applies to you.

Route 1: Working Parents — Apply via GOV.UK

Step 1: Gather your information

Before you start, make sure you have the following to hand:

• Your National Insurance number (or Unique Taxpayer Reference if you are self-employed)
• Your UK bank account details
• Details of your employer or self-employment income
• Your Government Gateway user ID and password (you can create one if you don't have it)

Step 2: Check your eligibility

Visit beststartinlife.gov.uk (previously Childcare Choices), which is now the government's official parent hub for early years support. Use the eligibility checker to see which childcare schemes you can access before starting a full application.

Step 3: Apply online

Go to gov.uk and sign into or create your childcare account. Complete the application form, which takes around 20 minutes. You may receive a decision immediately, but it can take up to 7 days in some cases.

Step 4: Receive your eligibility code

Once approved, you'll receive an 11-digit eligibility code. This code is what your nursery needs to claim the funded hours on your behalf.

Step 5: Give the code to your nursery

Pass your eligibility code to your chosen nursery as soon as possible. Most providers need the code before the term starts, so don't leave this until the last minute.

Step 6: Reconfirm every 3 months

Your code needs to be reconfirmed every 3 months to stay active. HMRC will send you a reminder, but it's worth setting your own calendar reminder too. Missing a reconfirmation deadline could mean losing access to your funded hours for that term.

‍

Route 2: Benefits-Based Families — Apply via Your Local Council

If you qualify through the supported families route, you do not apply through the government's online childcare service. Instead, the process goes through your local authority.

Step 1: Check your eligibility

Contact your local council's early years team, or visit their website to find the application form for 2-year-old funded places. Some councils use their own online portals, while others still use paper forms.

Step 2: Complete the application

Fill in the form with your child's details and your benefit information. If your child qualifies because of a disability, you'll need to include a copy of their most recent Disability Living Allowance (DLA) award letter from the Department for Work and Pensions.

Step 3: Receive confirmation

Your local council will check your eligibility against the National Eligibility Checking System (ECS). If approved, they'll provide a unique reference number for you to give to your nursery.

Step 4: Secure a place at a registered nursery

Not every nursery offers both types of funded places, so it's worth confirming with your chosen provider that they accept the type of funding you have been approved for before your child's start date.

‍

Key Deadlines to Know

Timing matters. Apply too late and you could miss a full term's worth of funded hours. Here are the general deadlines:

• For a September start: Apply by 31 August
• For a January start: Apply by 31 December
• For an April start: Apply by 31 March

If you're applying for the first time, experts recommend applying 6 to 8 weeks before the term you want your child to start. This gives you time to deal with any delays or requests for additional information.

‍

Can You Combine Both Types of Funding?

Yes, in some cases. If your family qualifies under both the working families route and the supported families (benefits-based) route, you may be able to access up to 30 funded hours per week in total. You'll receive two separate eligibility codes and need to give both to your nursery provider.

‍

Stretching Your Funded Hours

Some nurseries, including settings that stay open year-round, offer what's called a "stretched entitlement." This lets you spread your funded hours across more weeks of the year (up to 52), which means you'd access fewer hours per week but have some cover during school holidays too.

It's worth asking your nursery directly whether they offer this option. At Little Mowgli Nursery in Leyland, you can contact the team to find out how funded hours work at their setting and what suits your family's schedule best.

‍

What Won't the Funded Hours Cover?

The funded entitlement covers the cost of the early education itself, but nurseries are permitted to charge separately for additional items such as:

• Meals and snacks
• Nappies and consumables
• Optional trips or activities
• Hours above the funded entitlement

Always ask for a clear breakdown of any charges before your child starts, and make sure everything is set out in your written contract with the provider.

‍

Common Mistakes Parents Make

Applying too late. If your code doesn't arrive before the term deadline, your child will need to wait until the following term.

Forgetting to reconfirm. The 3-month reconfirmation for working parents is easy to miss. Set a reminder.

Assuming all nurseries accept all types of funding. Always confirm with your chosen provider before committing.

Not checking both routes. Some families qualify under both the working families and benefits-based criteria. It's worth checking both.

A Note for Families Near Leyland

If you're exploring nursery options in the Leyland area, Little Mowgli Nursery accepts funded children and the team can walk you through how funded hours work within their setting. You can reach them at hello@littlemowgli.com or on 01772 974084.

‍

FAQs About Applying for 2-Year-Old Funding

Q: When is the earliest I can apply for 2-year-old funding online? 

You can apply as soon as your child is around 1 year and 36 weeks old (just over 22 months) if you're going through the working parents route. For the benefits-based route, most councils ask that your child is at least 21 months old before applying.

Q: How long does the online application take? The GOV.UK online application for working parents takes around 20 minutes to complete. Some parents receive an immediate decision, but it can take up to 7 working days. Building in extra time before the term deadline is sensible.

Q: What if I am self-employed? Can I still apply for 2-year-old funding? 

Yes. Self-employed parents can apply for funded childcare. Instead of a National Insurance number from an employer's payroll, you'll use your Unique Taxpayer Reference (UTR). The same minimum income thresholds apply as for employed parents.

Q: Does my child have to attend all 15 hours per week? 

No. The 15 (or 30) hours is the maximum entitlement, not a minimum requirement. You can choose to use fewer hours or spread them across more days depending on what your nursery offers and what works for your family.

Q: What happens to my child's funding when they turn 3? 

When your child reaches their third birthday, the 2-year-old funded place ends. They'll then move onto the universal 3 and 4-year-old entitlement, which is available to all children in England regardless of family income. Your nursery will guide you through this transition.

‍