At Happy Days Nurseries & Pre-Schools, we know that childcare is one of the biggest expenses families face. The good news? The government offers a range of funding options to help make high-quality early education more affordable and the support is only growing.
In this blog, we’re breaking down everything parents need to know about funded childcare in England: who’s eligible, how to apply, what it covers, and the extra support available.
Who’s Eligible for Funded Childcare?
The government has expanded funding in recent years, meaning many more families now qualify for help.
Here’s how it works:
From 9 months old: Children of working parents/carers may be eligible for funded hours.
From age 2: Funding is available for children of working families receiving certain benefits.
From age 3 and 4: All children automatically receive 15 hours of funded childcare, regardless of income and many working families can access up to 30 hours.
Funding begins the term after your child’s birthday. For example, if your child turns three in October, their funding starts in January.
These entitlements are designed to make returning to work or balancing family life a little easier, supporting families right up until school age.
What Counts as a “Working Parent”?
To qualify for funded hours for under 3s (and the extended 30 hours for 3–4s), each parent/carer, or the single parent/carer in a household, must:
Earn at least the equivalent of 16 hours per week at minimum wage (around £9,500 per year) and earn less than £100,000 per year.
There are some exceptions, such as if a parent is on maternity or parental leave, or has a disability.
How to Apply and Key Deadlines
Applications for funded childcare are made through the government’s Best Start in Life website (formerly known as Childcare Choices).
You’ll need to:
Create an online account.
Enter details like your National Insurance number and employment status.
Receive your code. Once approved, you’ll get a unique “funding code”, this is what you share with your nursery so they can claim your child’s funded hours.
Important Deadlines
Applications must be completed the term before your child is due to start using the funding:
31st August (for funding starting in September)
31st December (for funding starting in January)
31st March (for funding starting in April)
You’ll also need to reconfirm your details every three months to keep your code active. If you forget, your funding could be paused, so look out for reminder emails from HMRC (they sometimes end up in your spam folder!).
If your circumstances change, for example, if one parent/carer loses their job, don’t panic. There’s usually a grace period while you get back on track.
What Funding Covers (and What It Doesn’t)
One of the biggest misconceptions about funding is that it covers everything. In reality, the government funding only covers the education and childcare hours themselves, not the additional services nurseries provide.
At Happy Days, we’re transparent about this. The funding doesn’t include:
- Meals and snacks
- Nappies and wipes
- Sun cream
- Enrichment activities
To keep things simple for families, we offer our SHINE package, which includes all these extras, so there are no hidden costs and everything your child needs is taken care of.
You can also combine funding with Tax-Free Childcare to make things even more affordable. For example, you might use your funded hours for your core nursery sessions, and use Tax-Free Childcare to help pay for meals or additional days.
Stretching Funded Hours Across the Year
The government funding is based on 38 term-time weeks, like the school year. But most nurseries, including Happy Days, are open all year round.
To make this work, we can “stretch” your funded hours over 51 or 52 weeks.
That means instead of receiving 30 hours per week term-time, you’d receive around 22 hours per week all year round, the total number of funded hours stays the same, just spread out evenly.
This flexibility helps families plan for consistent childcare without breaks during school holidays.
FAQs: What Parents Ask Most
Can I split my funded hours between two providers?
Yes! You can divide your entitlement between, for example, a nursery and a childminder. You just can’t claim more than your total allowance overall.
What happens if my income changes?
If your income drops below the minimum, your funding code might stop renewing, but you’ll usually get a grace period. If your income rises above £100,000 (per parent), you’ll no longer be eligible.
Can self-employed parents/carers apply?
Yes, absolutely, you’ll just need to confirm you expect to meet the minimum income threshold across the year.
Are grandparents or guardians eligible?
If they’re the child’s legal guardian and meet the criteria, yes.
Are there other types of financial support?
Yes and many families don’t realise they can combine schemes. These include:
Tax-Free Childcare (the government adds 20% to your childcare account)
Universal Credit childcare support
Disability Access Funding
Early Years Pupil Premium (to support children from lower-income families or with additional needs)
It’s always worth checking your eligibility through the Best Start in Life website, as many parents/carers qualify for more than they expect.
Making Childcare Affordable and Transparent
At Happy Days, we want every family to feel confident and informed about childcare costs. Funded hours can make a huge difference, especially when combined with the right support schemes and flexible options.
If you’re unsure what you’re entitled to, talk to your nursery manager or visit:
👉 Affordable Childcare – Happy Days Nursery
👉 www.beststartinlife.gov.uk (England)
👉 Childcare Offer for Wales | Help With Childcare Costs Wales | GOV.WALES (Wales)
And remember, while funding helps cover your child’s early education, choosing the right nursery means investing in their happiness, development, and confidence, something we’re proud to support at Happy Days every day.
