Who Is Eligible for Funded Nursery Places? A Parent's Guide

Childcare costs in the UK are steep, and for many families, government-funded nursery hours make a real difference. But the rules around who qualifies, how many hours you get, and when the funding kicks in can feel genuinely confusing, especially if this is your first child or you are returning to work for the first time.

This guide cuts through the noise. It covers who is eligible for funded nursery places in England, what changed in September 2025, and exactly how to claim what your family is entitled to.

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What Are Funded Nursery Places?

Funded nursery places are hours of early education and childcare that the government pays for on your behalf. You do not pay those hours directly out of your own pocket. Instead, the government funds registered providers, such as nurseries, preschools, and childminders, to deliver them for free to eligible children.

The hours can be used at nurseries, nursery schools, preschools, children's centres, or with childminders, as long as the provider is registered with Ofsted and approved to deliver the funded entitlement.

There are several different funded entitlements in England, each with its own age range, eligibility criteria, and number of hours. Let's break it down by age group.

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Funded Hours for Babies and Children Under Three

This is the area that changed most recently, and it affects the largest number of families.

30 Hours for Eligible Working Parents (9 Months to 3 Years)

From September 2025, all eligible working parents in England with children aged from nine months to four years became entitled to 30 hours of government-funded childcare per week, amounting to 1,140 hours per year. This was the final phase of a major expansion that began in 2024.

Here is who qualifies:

• You live in England
• You and your partner (if you have one) are in paid work, or temporarily away from work on parental, maternity, paternity, adoption, sick, or annual leave
• You and your partner each earn at least the equivalent of 16 hours a week at the National Minimum or Living Wage (around £195 per week or £10,158 a year from April 2025) and neither of you earns more than £100,000 adjusted net income per year

You can be employed or self-employed. If you are on parental leave and planning to return to work, you can still apply. The 30 hours runs from the term after your child turns nine months old through until they start school.

Next steps: apply at gov.uk using your National Insurance number. You will receive an eligibility code to give to your nursery. Codes need to be reconfirmed every three months, so keep that in mind.

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Funded Hours for Two-Year-Olds

Two-year-olds can access funded hours through two separate routes, depending on their family's situation.

30 Hours for Working Families with Two-Year-Olds

From September 2025, working parents of two-year-olds who meet the working family eligibility criteria can access 30 hours of funded childcare per week, the same as for children aged nine months to two years. The eligibility criteria are identical: you and your partner (if applicable) must each earn at least the equivalent of 16 hours at National Minimum Wage and no more than £100,000 each.

15 Hours for Disadvantaged Two-Year-Olds

If your family is not in work or does not meet the working parent income thresholds, your two-year-old may still qualify for 15 funded hours per week through a separate scheme aimed at families receiving additional support.

Eligible two-year-olds from families receiving additional support are entitled to 570 hours of government-funded early years provision per year. This is commonly taken as 15 hours per week for 38 weeks.

Your two-year-old qualifies for these 15 hours if you receive any of the following:

• Universal Credit (based on an annual household income of no more than £15,400 after tax)
• Income Support
• Income-based Jobseeker's Allowance
• Income-related Employment and Support Allowance
• Tax credits with earnings of no more than £16,190 per year before tax
• The child is looked after by the local authority
• The child receives Disability Living Allowance
• The child has a special educational need or disability (SEND)
• The child is subject to a kinship or guardianship order

To check eligibility for the disadvantaged two-year-old entitlement, parents can use the online eligibility checker via childcarechoices.gov.uk or contact their local authority directly.

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Funded Hours for Three and Four-Year-Olds

This is the most straightforward part of the system. Every child in England is entitled to funded early education from the term after their third birthday, regardless of family income or employment status.

15 Universal Hours (All Three and Four-Year-Olds)

All three and four-year-olds in England are entitled to 15 hours of funded early education per week for 38 weeks of the year. This is available to all families regardless of income or working status, and no application code is required.

This funding starts automatically from the term after your child's third birthday. The three terms begin on 1 January, 1 April, and 1 September. So:

• A child turning three before 31 December becomes eligible from the January term
• A child turning three before 31 March becomes eligible from the April term
• A child turning three before 31 August becomes eligible from the September term

30 Hours for Working Families with Three and Four-Year-Olds

Working parents of three and four-year-olds who meet the same income and employment criteria as above can access 30 hours per week instead of 15. The additional 15 hours sit on top of the universal entitlement, but you claim them together using a single eligibility code from gov.uk.

Universal 15-hour funding continues until the September following a child's fourth birthday, at which point they move into Reception at primary school.

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How Funded Hours Work in Practice

There are a few practical details worth knowing before you assume everything runs completely free of charge.

Term-time versus stretched hours. By default, the government funds 30 hours per week over 38 term-time weeks. Some nurseries offer to stretch those hours across more weeks, so instead of 30 hours a week for 38 weeks, you might receive around 22 or 23 hours a week across 51 weeks. This can suit families who need consistent year-round childcare. Ask your nursery what their arrangement is.

Top-up charges are legal. Nurseries can charge for extras beyond the funded hours. Meals, nappies, and optional activities such as trips or specialist sessions are not covered by the funded entitlement. A nursery cannot charge a fee to access the funded hours themselves, but supplementary costs are permitted. A 2025 survey found that around 60% of nurseries charge for services beyond the funded hours, so it is worth clarifying costs before you enrol.

The funding cap per day. Funded hours can be applied for a maximum of 10 hours per day. If you need more than 10 hours of childcare on any given day, the hours above that threshold will need to be paid privately.

Not all providers participate. The nursery you choose must be registered with Ofsted and signed up to deliver the funded entitlement. Always confirm with your chosen provider before assuming they accept funded hours.

At Little Mowgli Nursery in Leyland, the team is happy to talk parents through how funded hours work in their setting and what it means for your weekly costs in practice.

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Tax-Free Childcare: An Additional Option

Funded nursery hours cover a portion of your childcare costs, but if you need additional hours beyond your entitlement, Tax-Free Childcare can help top things up.

Tax-Free Childcare is a government scheme where for every £8 you pay into your childcare account, the government adds an extra £2, up to £2,000 per child per year (or £4,000 per year for a disabled child).

To be eligible for Tax-Free Childcare:

• You must be in qualifying paid work (including self-employment, parental leave, sick leave, and annual leave)
• You and your partner (if applicable) must each earn at least the equivalent of 16 hours a week at National Minimum Wage, and neither of you should earn more than £100,000 adjusted net income per year
• You must not be receiving Universal Credit or Childcare Vouchers

Tax-Free Childcare can be used alongside the 30-hour funded entitlement. So if your child attends nursery for more hours than their funded allocation covers, you can use the Tax-Free Childcare account to pay for the difference at a reduced cost.

Apply at gov.uk. Like the funded hours code, you will need to reconfirm your eligibility every three months.

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Step-by-Step: How to Claim Funded Nursery Hours

Here is a straightforward process to follow:

1. Check your eligibility. Use the eligibility checker at beststartinlife.gov.uk or childcarechoices.gov.uk to find out what you qualify for based on your child's age and your household income and employment status.
   
   
2. Apply for your code. For the 30-hour working parent entitlement and the disadvantaged two-year-old entitlement, you need to apply online via gov.uk. Have your National Insurance number and your child's date of birth to hand. For the universal 15-hour entitlement for three and four-year-olds, no code is required.
   
   
3. Apply at the right time. You can apply for funded childcare once your child is 23 weeks old. Apply at least a few weeks before the term start date to ensure your code is processed in time. Term start dates are 1 January, 1 April, and 1 September.
   
   
4. Give your code to the nursery. Take your eligibility code to your chosen provider. They will process it and confirm your funded hours arrangement.
   
   
5. Reconfirm every three months. Your code will expire if you do not reconfirm your eligibility. Set a reminder so you do not lose your funding mid-term.
   
   
6. Discuss the arrangement with your nursery. Confirm how many funded hours you will use, whether they are term-time only or stretched across the year, and what, if any, additional charges apply.
   
   

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What If You Cannot Find a Funded Place?

Demand for funded places can outstrip supply in some areas, particularly in popular settings. If you struggle to find a provider with funded places available, contact your local authority. They have a duty to help you find suitable local provision.

Apply early. Well-regarded nurseries fill their funded places quickly. At Little Mowgli Nursery , families are encouraged to check availability as early as possible and to get in touch to discuss their funded hours before a place is needed, not on the day they need to start.

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FAQs: Funded Nursery Places in England

Q: My child is 10 months old and I work part-time. Are we eligible for funded nursery hours?

Yes, provided both you and your partner (if applicable) each earn at least the equivalent of 16 hours per week at National Minimum Wage and neither of you earns more than £100,000 adjusted net income per year. Your child becomes eligible from the term after they turn nine months, so you may already be able to claim 30 funded hours per week. Check your eligibility at beststartinlife.gov.uk.

Q: I am on maternity leave and not currently earning. Can I still get funded hours?

Yes. Parents on parental, maternity, paternity, or adoption leave are still treated as being in qualifying paid work for the purposes of the funded entitlement. You can apply during your leave period and the funding will be ready for when your child needs it. You may see your application marked as "pending" if you apply more than 31 days before returning to work, but your code will still be issued.

Q: My child turns three in November. When does their funded entitlement start?

Their universal 15-hour entitlement starts from the January term, which begins on 1 January. That is because funding begins the term after your child turns three, and the term after a November birthday is the January term. If you are also eligible for the working parent 30-hour extension, the same term-start rule applies.

Q: Can I use funded hours at more than one nursery or provider?

Yes, in most cases. You can split your funded hours across two registered providers, as long as the total does not exceed your weekly entitlement and neither provider is charging you for the funded portion of the hours. Speak to both providers in advance to arrange this.

Q: Does funded childcare cover meals and nappies?

No. The funded entitlement covers the early education and care itself. Nurseries can and often do charge separately for meals, nappies, and optional extras. They cannot charge you for the funded hours themselves, but they can charge for consumables and services beyond what the funding covers. Always ask for a clear breakdown of what is and is not included before you sign up.

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