Childcare Funding in England: A 2026 Guide for Parents
Childcare is one of the biggest costs a young family faces, but there’s more help available than many parents realise. This guide sets out every main scheme in England in 2026, who it’s for, and how they fit together. For how they apply at our nursery, see how funding works at our Fulham nursery.
Rules checked against GOV.UK in October 2026. Funding is devolved, so Scotland, Wales and Northern Ireland have different schemes.
The schemes at a glance
|
Scheme |
What you get |
Who for |
|---|---|---|
|
30 hours (working parents) |
Up to 30 hours a week, 38 weeks a year |
Eligible working parents of children aged 9 months to school age |
|
15 hours for 2-year-olds |
15 hours a week |
2-year-olds in families receiving certain support |
|
15 universal hours |
15 hours a week |
Every 3- and 4-year-old |
|
Tax-Free Childcare |
£2 for every £8 you pay, up to £2,000 a year per child |
Eligible working parents of children under 12 |
|
Universal Credit childcare |
Up to 85% of childcare costs reimbursed, up to a monthly cap |
Working families on Universal Credit |
30 hours for working parents
From the term after your child turns 9 months until they start school. You and your partner must each expect to earn at least the equivalent of 16 hours a week at the National Minimum or Living Wage (£2,643.68 over three months if you’re 21 or over), and neither can have adjusted net income above £100,000. Apply online, get a code, give it to your nursery, and reconfirm every three months. How to apply →
15 hours for 2-year-olds receiving support
For families on certain benefits or low incomes, and for children who are looked after or have left care, have an EHC plan or get Disability Living Allowance. You apply through your council. A child qualifies through one route or the other; if you qualify for both, the total is capped at 30 hours. Funding for 2-year-olds explained →
15 universal hours for 3- and 4-year-olds
Every child gets 15 hours a week from the term after their third birthday, whatever your income or work status. No application needed: the nursery claims it. Working parents can add another 15 hours through the 30-hours route.
What “funded hours” really means
- The funded hours themselves are free.
- Funding is for 38 weeks a year: 570 hours (15 a week) or 1,140 hours (30 a week). Nurseries open all year often stretch these over more weeks for a steadier bill.
- Nurseries can charge for extra hours and for things like meals and consumables, but must be transparent and can’t make extras a condition of taking your funded place.
Tax-Free Childcare
Open an online childcare account; for every £8 you pay in, the government adds £2, up to £500 every three months per child (£1,000 for a disabled child). You can use it alongside funded hours, but not at the same time as Universal Credit or childcare vouchers. Tax-Free Childcare plus 30 hours →
Universal Credit childcare costs
If you’re working and claim Universal Credit, you may be able to get up to 85% of your childcare costs back, up to a monthly limit. You pay the nursery first, then report the cost to claim it.
How to apply, in order
- Check what you’re eligible for on the government’s Childcare Choices site.
- Apply for 30 hours and/or Tax-Free Childcare through your childcare account.
- For 2-year-old support, apply to your council.
- Give your nursery your code or council confirmation before the term starts.
- Reconfirm every three months.
Funding at Caring Hands
We take children from age 2 to 5 and accept all these schemes for that age range. We stretch funded hours over 51 weeks and will work out your monthly cost with you. Request our fee sheet →
Frequently asked questions
Can I use funding for a baby?
Working parents can claim from the term after their child turns 9 months, at nurseries that take babies. Caring Hands takes children from age 2.
Can my child get 15 hours and 30 hours?
Working parents can claim from the term after their child turns 9 months, at nurseries that take babies. Caring Hands takes children from age 2.
Do all nurseries accept funding?
Most do, but ask about stretching and extra charges.
