How to Apply for 15 Hours Free Childcare for 2-Year-Olds

Childcare costs are one of the biggest financial pressures facing families in the UK today. If you have a two-year-old, you may be entitled to 15 hours free childcare per week and many parents in England don't realise they qualify. This guide walks you through exactly who is eligible, how to apply, and what to expect when you start using your funded hours.

What Is the 15 Hours Free Childcare Offer for 2-Year-Olds?

The government-funded childcare scheme in England gives eligible families access to 570 hours of free early education per year for their two-year-old. Most families take this as 15 hours a week over 38 weeks (roughly term time), though you can spread it over more weeks if your provider agrees for example, around 11 hours a week over 52 weeks.

The scheme applies to children in England only. There are separate arrangements in Scotland, Wales, and Northern Ireland.

Your child can start using the funded hours from the beginning of the term after their second birthday. The three term start dates are:

• 1 January
• 1 April
• 1 September

So if your child turns two in July, they become eligible from 1 September that year.

Who Qualifies for 15 Hours Free Childcare for 2-Year-Olds?

There are two separate routes to qualifying for 15 hours free childcare for a 2-year-old in England. It's worth checking both.

Route 1: Families Receiving Additional Support (Benefits-Based)

Your two-year-old qualifies for 15 hours of funded childcare if your household receives any of the following:

• Universal Credit, where your combined household income from work is £15,400 a year or less after tax (not including benefit payments)
• Income Support
• Income-based Jobseeker's Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Tax Credits (Child Tax Credit or Working Tax Credit), where your combined household income is £16,190 or less before tax
• Working Tax Credit 4-week run-on (the payment received when you stop qualifying for Working Tax Credit)
• Support under Part VI of the Immigration and Asylum Act 1999

Your child may also qualify on their own circumstances if they:

• Are looked after by a local authority
• Have been adopted, are subject to a special guardianship order, or a child arrangements order
• Have an Education, Health and Care (EHC) Plan
• Receive Disability Living Allowance (DLA)

If your family has no recourse to public funds due to immigration status, you may still be eligible if you live in England and your household income after tax does not exceed:

• £26,500 for families outside London with one child
• £34,500 for families in London with one child
• £30,600 for families outside London with two or more children
• £38,600 for families in London with two or more children

Route 2: Working Families (September 2025 Update)

From September 2025, the government expanded its funded childcare offer significantly. Eligible working parents with children aged nine months to school age can now access 30 hours of funded childcare per week double the previous offer.

If you are a working parent of a two-year-old and meet the income criteria below, you would now typically qualify for 30 hours rather than just 15. Check your eligibility on the Childcare Choices website.

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

• Earn at least the equivalent of 16 hours per week at National Minimum Wage (around £195 per week or £10,158 per year from April 2025)
• Earn no more than £100,000 adjusted net income per year

If only one of you meets the earnings threshold, or if either of you earns over £100,000, you will not qualify for the working parent entitlement. You may still qualify under the benefits-based route above.

How to Apply for 15 Hours Free Childcare for 2-Year-Olds: Step by Step

Here is how the application process works, depending on which route applies to you.

If You Are Applying Under the Benefits Route

1. Contact your local council. For the benefits-based 15-hour entitlement, you apply through your local authority rather than through HMRC. Your council will check your eligibility using the government's Eligibility Checking System.
   
   
2. Gather your documents. You will typically need proof of your benefit entitlement (such as a benefit award letter), your child's birth certificate, and your own ID.
   
   
3. Find an approved provider. The nursery or childminder must be registered with Ofsted and signed up to offer funded places. Ask any provider directly whether they accept funded two-year-old places.
   
   
4. Give your proof to the provider. Once your local council confirms eligibility, take your proof to the nursery. They will process the funding on your behalf.
   
   

If You Are Applying Under the Working Parent Route

1. Apply online via HMRC's Childcare Service at childcarechoices.gov.uk. You will need your Government Gateway login (or create one if you do not have it), your National Insurance number (or Unique Taxpayer Reference if self-employed), and your child's date of birth.
   
   
2. Wait for your eligibility code. You may find out immediately, but it can take up to 7 days. Once approved, HMRC sends you an eligibility code.
   
   
3. Give the code to your childcare provider. Pass the code along with your National Insurance number and your child's date of birth. The provider will validate it with your local authority.
   
   
4. Reconfirm every three months. You must log back into your childcare account and confirm your details are still correct every three months. You will receive a reminder. If you miss a reconfirmation, you may lose your funded hours for that term.
   
   

Quick tip: Apply ahead of the term deadline. If you want funding to start in September, apply by 31 August. For January, apply by 31 December. For April, apply by 31 March.

What Costs Might Still Apply?

The funded hours cover the childcare itself; they do not cover everything. Your provider may still charge for:

• Meals and snacks (including lunch and nappies for younger children)
• Optional trips and activities outside the setting
• Additional hours beyond your funded entitlement

Providers are not allowed to charge top-up fees on the funded hours themselves, but they can charge separately for these extras. It is worth asking your chosen nursery for a clear breakdown before your child starts.

Finding an Approved Childcare Provider

Your funded hours can only be used with an approved childcare provider. This means the setting must be:

• Registered with Ofsted
• Signed up with their local authority to offer funded places for two-year-olds

You can search for registered providers on the Ofsted website or ask your local council for a list of nurseries in your area offering funded places.

At Little Mowgli Nursery in Leyland, Lancashire, the team works with families to help navigate the funding process and make the most of their entitlement. If you're based in or around Leyland including areas like Chorley, Bamber Bridge, Buckshaw Village, and Lostock Hall it is worth getting in touch to check what funded places are available for your child's age group.

What Happens After Your Child Turns Three?

Once your child turns three, the rules change in your favour.

All three and four-year-olds in England regardless of income or employment are entitled to 15 hours of funded early education per week for 38 weeks of the year. No application is needed for this universal offer; your childcare provider handles it automatically when you show them your child's birth certificate.

If you are a working parent meeting the income thresholds, your three or four-year-old can access 30 hours per week under the expanded offer.

Does Taking Up Funded Childcare Affect Your Benefits?

No. Claiming funded childcare hours for your two-year-old does not affect your Universal Credit or any other benefits. The two schemes are separate, and using your entitlement will not reduce what you receive elsewhere.

15 Hours Free Childcare for 2-Year-Olds: Frequently Asked Questions

1. My child turns two in October when do the funded hours start? 

Your child becomes eligible from the start of the term after their second birthday. For an October birthday, the next term start date is 1 January. So funded hours would begin in January.

2. Can I split the 15 hours across more than one nursery or childminder? 

Yes, in most cases you can split the funded hours across two approved providers, as long as both are registered and accepting funded two-year-old places. Speak to your local authority to confirm how this works in your area.

3. I am on Universal Credit but my household income from work is above £15,400. Do I still qualify? 

Not under the benefits-based route for two-year-olds. The income threshold for Universal Credit claimants is £15,400 per year from work, after tax. If you earn above this and both you and your partner are working, check the working parent entitlement instead you may now qualify for 30 hours rather than 15.

4. What if I cannot find a nursery with funded places near me? 

Contact your local authority directly. They have a legal duty to ensure there are enough funded places for all eligible children in their area and can point you towards providers with availability, including those who may not advertise funded places widely.

5. Does Little Mowgli Nursery accept funded two-year-old places? 

Little Mowgli Nursery welcomes families from across the Leyland area and can advise you on how to use your entitlement at the setting. Get in touch via website or call 01772 974084 to discuss your child's place and how the funding works in practice.