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EARLY YEARS GOVERNMENT FUNDING

Visit www.childcarechoices.gov.uk for more information and applications

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 of free childcare through Free Childcare for Working Parents if you’re eligible for both.

 Eligibility

 Your eligibility depends on:

  • whether you’re working (employed, self-employed, or a director)
  • your income (and your partner’s income, if you have one)
  • your child’s age and circumstances
  • your immigration status

 If you’re working

 You can usually get Tax-Free Childcare if you (and your partner, if you have one) are:

  • in work
  • on sick leave or annual leave

Visit www.childcarechoices.gov.uk for further information on how you could qualify.

 

FUNDING FOR CHILDREN AGED 9 MONTHS UPWARDS

For children aged 2 years.

15 hours early learning for families in England receiving some additional forms of support.

Your 2-year-old can get funded early learning if you live in England and get any of the following benefits:

  • Income Support
  • income-based Jobseeker’s Allowance (JSA)
  • income-related Employment and Support Allowance (ESA)
  • Universal Credit, and your household income is £15,400 a year or less after tax, not including benefit payments
  • the guaranteed element of Pension Credit

Your benefits will not be affected if you take up the 15 hours early learning offer.

2-year-olds can also get funded childcare if they:

  • are looked after by a local authority
  • have an education, health and care (EHC) plan
  • get Disability Living Allowance
  • have left care under an adoption order, special guardianship order or a child arrangements order 

No income thresholds apply.

If your child is in receipt of 15 hours of early learning for families receiving some additional forms of support, you may also be eligible for Early Years Pupil Premium (EYPP). EYPP is paid to childcare providers and gives them additional funding to support learning and development for children. You can see if you’re eligible for EYPP on GOV.UK and speak with your provider or local council to apply.

 

15 hours childcare for all families in England for Children aged 3 and 4 years

All 3 to 4 year olds in England can get up to 570 funded hours per year from the term after your child turns 3 years old through to starting school. This is usually taken as 15 hours a week for 38 weeks of the year

If at any point, you start work after your child has turned the relevant age, meaning you meet the income threshold for 30 hours childcare, you will need to apply. 

 

For children aged 9 months to 4 years. Eligible working families can apply for 30 hours of childcare to use from the term after their child turns 9 months until they reach school age. 

If you live and work in England you may be entitled to 30 hours funded childcare support from the term after your child turns 9 months old, until they start school. 

You can usually get funded childcare for working parents if you (and your partner, if you have one) are:

  • in work or starting a new job
  • on sick leave or annual leave
  • on shared parental, maternity, paternity or adoption leave

The amount of funded childcare you can get depends on:

  • your child’s age and circumstances
  • your income (and your partner’s income, if you have one)
  • your immigration status

If you are not eligible for the working parent offer you will still receive the 15 hour entitlement for all 3 and 4 year olds from the term after your child turns 3 until they start school, irrespective of your income level, benefit status, or family circumstances.

 Your earnings

 Over the next 3 months you and your partner (if you have one) must each expect to earn at least:

  •  £2,539.68 before tax if you’re aged 21 or over (equivalent to £195.36 per week)
  • £2,080 before tax if you’re aged 18 to 20 (equivalent to £160 per week)
  • £1,570.40 before tax if you’re under 18 or an apprentice (equivalent to £120.80 per week)

 This is equivalent to the National Minimum Wage or Living Wage for 16 hours a week, on average.

 This table may help you identify if you meet the required income threshold:   

Your ageYearly3 monthsWeekly
21 and over £10,158  £2,539.68 £195.36
18 to 20 £8,320  £2,080 £160 
Under 18 or an apprentice £6,281 £1,570.40  £120.80

You can earn up to £100,000 adjusted net income per year and be eligible. If you or your partner have an expected adjusted net income over £100,000 in the current tax year, you will not be eligible. 

 You can use an average of how much you expect to earn over the current tax year if:

  • you work throughout the year but do not get paid regularly
  • you’re self-employed and do not expect to earn enough in the next 3 months

 If you have a partner who lives with you, they must also earn between these two amounts.  

 If you’re self-employed and started your business less than 12 months ago, you can earn less and still be eligible for funded childcare for working parents.

 If you have more than one job, you can use your total earnings to work out if you meet the threshold. This includes:

  •  earnings from any employment
  • earnings from any self-employment

If you’re both employed and self-employed, you can use just your self-employment income if this would make you eligible. For example, if you expect your average self-employed earnings over the tax year to be more than you’ll get over the next 3 months as an employee.