Key Points
- Universal 15-hour entitlement is available to all 3 and 4-year-olds in England from the term after their 3rd birthday
- The extended 30-hour entitlement is available to 3 and 4-year-olds where both parents work and earn between £2,570–£100,000 per year
- The 2024 expansion extended funded hours to 2-year-olds (15 hours) and, in stages, to children aged 9 months and over
- A government code must be obtained via the Childcare Choices website before a provider can claim funded hours
- Codes must be reconfirmed every three months or they expire and the entitlement is suspended
- Providers may offer the entitlement over fewer or more weeks than 38 (the “stretched” offer) but cannot charge top-up fees
Free childcare entitlements represent one of the most significant forms of state support for working families in England and one of the most substantial investments the government makes in early years provision. Understanding what you are entitled to (and the specific eligibility conditions and application processes attached to each element) is important for every family with pre-school children.
The entitlement framework has become considerably more complex since the 2024 expansion, which introduced funded hours for children from 9 months of age in a phased roll-out. This guide explains the complete picture, including the universal entitlement, the extended (30-hour) entitlement and the 2024 expansion to younger children.
The Universal 15-Hour Entitlement
Every child in England is entitled to 570 hours of free early education per year from the term following their third birthday. This is typically described as 15 hours per week for 38 weeks (the standard school year), though providers may offer this differently if they participate in the stretched-offer model (see below). The entitlement is truly universal – it is available regardless of parents’ employment status or income, and no code or application is required for this element beyond the standard registration process with the provider.
From September 2023, 15-hour funding was extended to all eligible two-year-olds in England – meaning all 2-year-olds whose families meet certain criteria, including those in receipt of Universal Credit, Child Tax Credit at the maximum rate, Income Support and several other means-tested benefits, and those who are looked after or have certain other vulnerabilities. From April 2024, this was expanded further to include all working families with 2-year-olds meeting the same work and earnings criteria as the 30-hour entitlement.
The Extended 30-Hour Entitlement
The extended 30-hour entitlement doubles the free provision to 1,140 hours per year (typically 30 hours per week for 38 weeks) for eligible 3 and 4-year-olds. To be eligible, both parents must be in paid work earning at least £2,570 gross per quarter (approximately 16 hours per week at the National Minimum Wage) and neither parent can earn more than £100,000 adjusted net income per year. Single-parent households need only meet the single-parent earning requirement. Parents on maternity, paternity or adoption leave are treated as working for the purposes of this entitlement.
To access the extended entitlement, parents must obtain an eligibility code from HMRC via the Childcare Choices website (childcarechoices.gov.uk) or the government’s childcare service at gov.uk. This code must be obtained before the start of the term in which the child will take up the extended hours – not before the child’s third birthday, but before the relevant term starts. The code must then be given to the childcare provider, who will claim the funding from the local authority.
The 2024 Expansion: 9 Months to 3 Years
In the 2023 Budget, the government announced a major expansion of funded childcare, extending the principle of funded hours to children from 9 months of age in eligible working families. The expansion was rolled out in phases:
- April 2024: 15 funded hours per week for working families with children aged 2 years
- September 2024: 15 funded hours for working families with children aged 9 months to 2 years
- September 2025: 30 funded hours for all eligible working families with children from 9 months to school age
The eligibility criteria for the expansion mirror those for the existing 30-hour entitlement: both parents must work and earn between £2,570 and £100,000 per quarter. The expansion represents a very significant investment – but it depends entirely on the availability of registered places to deliver the hours. A shortage of registered childcare providers, particularly for under-2s, has been a significant implementation challenge in many parts of England.
The Application Process and Eligibility Codes
Families accessing funded hours for children under 3, or accessing the 30-hour extended entitlement for 3–4-year-olds, must obtain an eligibility code via the government’s childcare service. This involves creating a Government Gateway account, checking eligibility, and applying for the code. Eligible families receive an 11-digit code that must be given to their childcare provider before the start of the relevant term. Providers submit the code to the local authority with their funding claim each term.
Codes must be reconfirmed every three months. If a family fails to reconfirm, the code expires and the provider cannot continue to claim the funded hours. Reconfirmation requires logging into the Government Gateway and confirming that the family still meets the eligibility criteria. The consequence of a missed reconfirmation is that the provider will need to charge full fees for any hours previously covered by the funded entitlement until a new code is obtained. Families should treat the reconfirmation as a diary appointment and action it promptly when the reminder arrives.
The Stretched Offer
The “stretched offer” is an option offered by some providers (where the local authority permits it) to spread the funded hours across more weeks than the standard 38-week year. For example, a family taking 30 hours for 38 weeks receives 1,140 funded hours per year. A provider offering a stretched deal might offer 22.8 hours per week for 50 weeks – the same total hours, stretched across the year. The stretched offer is beneficial for families who use childcare year-round and wish to avoid the full cost of childcare during school holidays.
Not all settings offer the stretched deal, and local authorities vary in whether they permit it. Families interested in a stretched offer should ask their provider whether this is available and, if so, what their specific arrangements are. The local authority will publish this information in its local offer.
What Providers Can and Cannot Charge
A common source of confusion is what providers are permitted to charge in relation to funded hours. The position is:
- providers cannot charge a top-up fee for funded hours –
- that is, they cannot charge parents the difference between the government funding rate and their usual hourly rate for the hours funded. They can charge for additional hours beyond the entitlement, for meals and snacks consumed during funded sessions, and for optional activities or consumables that genuinely involve additional cost. Charging for consumables or optional extras as a condition of accessing the funded hours, or charging a “registration fee”
- that is effectively a top-up, is not permitted
Parents who believe they are being charged unlawfully should contact their local authority.
For related guidance, see also our articles on types of registered childcare, the EYFS and registered providers and choosing an after-school club.
Looking for Quality Childcare in Derby?
Happy Hearts Learning Centre offers registered after-school and holiday club provision for children aged 5–15 in Derby, inspected by Ofsted. We would love to tell you more about our approach.
Get in Touch