Paying for childcare in England

Free childcare entitlements

There are three entitlements to government funded childcare in England:

• Universal 15 hours entitlement: all three and four-year-olds are eligible for 570 hours of government-funded childcare a year, commonly taken as 15 hours a week for 38 weeks of the year (that is, during term-time).
• Two-year-old disadvantaged entitlement: some two-year-olds are eligible for 570 hours of funded childcare if certain conditions are met - for example, if their parents receive specified benefits.
• Working families entitlement: eligible working families qualify for 1,140 hours of funded childcare a year (inclusive of the 570 hours under the universal 15 hours entitlement). This is commonly taken as 30 hours a week for 38 weeks of the year. Prior to April 2024, the entitlement was often referred to as the 30 hours extended entitlement and was limited to eligible three and four-year-olds.

Expanding the working families entitlement

Under plans announced by the previous government at Spring Budget 2023, the working families entitlement is in the process of being expanded to children from nine months. Currently, eligible children can access 15 hours a week (570 hours) from nine months. From September 2025, they will be able to access 30 hours a week (1,140 hours).

Additional charges

All government-funded hours must be delivered completely free of charge and providers are not allowed to charge top-up fees – that is, charge for any difference between their normal charge to parents and the funding they receive to deliver the free hours. However, providers are allowed to charge for meals, other consumables and additional services.

The current government has revised the statutory guidance on delivering the entitlements. The updated guidance, which came into force on 1 April 2025, makes clear that extra charges for meals, other consumables and additional services, must be voluntary and providers should have a policy on offering alternatives to extra charges.

Tax-free childcare

Parents across the UK can apply for support through the tax-free childcare (TFC) scheme. Under TFC, the government tops up each £8 paid into a TFC account with an extra £2, up to £500 per child every three months, or £1,000 every three months for a disabled child. Money in the TFC account can then be used to pay for approved childcare.

Childcare support through the benefits system

Working families can get help with childcare costs through the childcare costs element of Universal Credit (UC).

The childcare costs element reimburses UC claimants for childcare they have already paid for, up to certain limits. From April 2025, the childcare costs element is worth up to £1,032 a month for one child, and £1,769 for two or more children.

UC claimants are not eligible for the tax-free childcare scheme.

Childcare support for students

Eligible higher education students can access help from Student Finance England through the Childcare Grant and the Parents’ Learning Allowance. Medical, dentistry, healthcare, and social work students may be eligible for help from the NHS. Higher education providers also have hardship funds, which are available to help students in financial difficulty.

Further education students aged 20 or older may be eligible for Learner Support funds, which are administered by individual providers, while students under 20 years of age may be eligible for weekly payments through the Care to Learn scheme.