Working families - 2 year olds funded childcare

Parents who work the equivalent of 16 hours per week at minimum living wage and have a child aged 2 may qualify for 15 hours funded childcare per week for 38 weeks per year.

How are the funded hours delivered?

The 15 hours of funding can be used over 38 weeks (term time).  Some childcare providers may allow families to take less hours a week and stretch them over 51 weeks.  This works out to approximately 11 hours per week.  Please check with your chosen childcare provider about how they delivery their hours before taking a funded place.

Who is Eligible?

  • Parents (whether two-parent family or lone parent) are working and earning a minimum of the equivalent of 16 hours per week at the National Minimum or Living Wage (includes income received from tax credits or Universal Credit).
  • Parents (neither parent if two-parent family) income does not exceed £100,000 per year.
  • One or both parents are on paid leave (parental, maternal etc).
  • One or both parents are on statutory sick pay.
  • Parents on zero hours contracts and those who are registered as self-employed.
  • One parent is employed, and the other parent has either:
    • substantial caring responsibilities and or a disability
    • Is a foster carer with their own 3 and 4 year-old children

Parents can check if they are eligible at Childcare Choices

How do I apply?

If you feel you are eligible for this scheme you will need to apply direct to the HMRC via your gateway account by the termly cut-off date.  If you have any queries about your application, please call HMRC on 0300 123 4097.

If you are found to be eligible you will be given an 11 digit eligibility code.  You will need to pass this code to your chosen childcare provider to be able to take up your funded place from the next intake.

Once you have been provided with your eligibility code you will be required to reconfirm your details on your HMRC childcare account every three months to ensure your code remains valid.

What if I don’t have a gateway account?

The HMRC link will prompt you to either log into your gateway account or register for an account.  If you have already registered for Tax Free Childcare this is via your gateway account, so you can just log in using your gateway code and password.

If registering for an account you will be provided with a gateway code which you will use to set up your account.  Once your account is set up you can log in with your gateway code and password and apply for the eligibility code.

Please note your gateway code is not your eligibility code and cannot be used to take up a funded place.

When to apply

When you are applying for the funding with the HMRC, you must do this within the following timeframes.  This will then allow you to take up a funded place from the term stated.   If you apply after these dates, you will have to wait until the following term to take up the additional funded hours.  

  • HMRC Deadline - 31 August 
    Funding can start - Autumn term (September)
  • HMRC Deadline - 31 December
    Funding can start - Spring term (January)
  • HMRC Deadline - 31 March
    Funding can start - Summer term (April)

Please note - it can take up to 15 days from the date of application for HMRC to issue a code.  If you have any difficulty making your application, please call the HMRC helpline on 0300 123 4097.

I am planning to return to work soon, when can I apply for a code?

If you are returning to work after parental leave or starting a new job and you would like to claim the working parent entitlement, you will need to apply direct to the HMRC.  Please note, the date you start or return to work will affect when you can apply for free childcare:

If your return to work day is between:

  • 1 May to 30 September
    • Apply for your code between 1 April to 31 August
    • Funding starts Autumn term (September)
  • 1 October to 31 January
    • Apply for your code between 1 September to 31 December
    • Funding starts Spring term (January)
  • 1 February to 30 April
    • Apply for your code between 1 January to 31 March
    • Funding starts Summer term (April)

How do I find a childcare provider who offers 15 hours funded childcare?

Choosing a childcare provider is a big step for you and your child and finding the right place can be a hard decision to make.  Our information on choosing a childcarer can advise you on things to consider when making your choice. 

Use the childcare directory to find a childcare provider that delivers funded places for 2 year olds

Foster Parents

The application process for foster parents is different when applying for the 15 hours funded childcare and foster carers are advised to contact their social worker direct to discuss the application process.  Foster parent(s) must meet the following criteria:

  • That accessing the expanded hours is consistent with the child’s care plan, placing the child at the centre of the process and decision making; and
    • That, in a single parent foster family, the foster parents engage in paid work outside their role as a foster parent; or
    • In two parent foster families, both partners engage in paid work outside their role as a foster parent. If one foster partner is not a foster parent, then they must be in qualifying paid work and earn a minimum of the equivalent to 16 hours per week at the national minimum / national living wage.  This is £120 per week if over 25 years old.

If the foster parent is eligible, an eligibility code will be issued.  This will then allow the child to take up the offer from the start of the term after eligibility has been granted.  The social worker will check and reconfirm the foster carer's eligibility for the entitlement on a termly basis. 

How much will this cost me?

Your child’s funded hours are free of charge.  However, the funding entitlement does not cover the cost of meals, consumables, or additional services.  Childcare providers can charge you for the following: 

  • Meals and snacks, if you choose to take this up you would be expected to pay for them.
  • Consumables such as nappies, suncream or wipes but you could ask whether you are able to supply your own.
  • Extra hours, if you choose to take these up you would be expected to pay for them.

This should not be a condition of accessing your funded place and you are should discuss what charges you may incur before taking up a funded place.

Knowing what you may be expected to pay will help you make an informed decision whether this is the right choice for you or whether there is an alternative option that maybe more suitable.

If you choose to pay for meals, consumables, or additional services these items should be clearly listed on your invoice so that you are aware of what you are paying for.  If you have any questions, please discuss them directly with your chosen childcare provider who will be able to explain their process to you.

Deposit and registration fee

The childcare provider should provide you with their admissions criteria or policy that tells you how they manage applications, this should also include their fees and charges pricing structure.  The provider must be clear and transparent about how you can access the funded place and help you understand, before you accept the place, which hours/sessions can be taken as funded provision and the amounts of additional charges that may be applicable for different sessions.

Childcare providers might request a deposit when arranging a funded place.  If requested, the provider will outline the conditions of the deposit. 

Childcare providers can only request a registration fee for a funded place if meals, consumables or additional hours/services are being taken up.  

Can I increase my hours if I have not used my full entitlement?

You will be asked to set a pattern of attendance for your funded hours for the term with your provider and this is added to your parental declaration form.  If you are not taking the full amount of funded hours available for that term and want to increase your hours, you must do this before the deadline of when your childcare provider needs to submit their data to the local authority.  Any changes after that date will not be taken into effect until the next term.

Can I move my child to a different provider during the term?

If you wish to move some or all your funded hours to another childcare provider during the term, that is fine You will need to check your contract that you agreed with your childcare provider on what notice period you need to give if you would like to terminate the contract.

Your new childcare provider can only claim after the notice period and not before. If the date of the notice period falls after the date the provider needs to submit to the authority, the new provider will not be able to claim your funded entitlement until the next term. The Local authority checks all claims are not exceeded and if they are, the childcare provider will not be funded for their claim, meaning you will be liable for the expense.

How do i reconfirm my entitlement?

You will be required to reconfirm your details on your HMRC childcare account every three months to ensure your code remains valid.  The HMRC will send you a  text or email to reminder you of when this needs to be done. 

If your working situation does not change, you can reconfirm your details every 3 months to be able to continue to use your eligibility code until your child starts in reception.   In addition to this, from the term after your child turns three, if you are still eligible you can then use the code to received the 30 hours extended funding.

Please note - if you are issued with a temporary code by HMRC these are only valid for one term so you must ensure you have a new code from HMRC for the following term.

If you are the parent and you still have further queries please email earlyeducation@leicester.gov.uk or telephone 0116 4541680.