Childcare is one of the biggest costs faced by parents today.
A full-time nursery place now costs, on average, £14,030 per year. This is almost £1,200 per month. But help is available.
The government provides free childcare hours to eligible parents. We're digging into how this scheme works, who's eligible, and how to apply.
Note: This article covers the schemes available in England. Alternative (but similar) schemes are available in Scotland, Wales, and Northern Ireland. Check your local government website for more details.
How many hours of free childcare are available?
Working parents can apply for free childcare depending on their child's age:
- 9 months to 2 years: 15 hours per week (570 hours per year)
- 2 to 3 years: 15 hours per week (570 hours per year)
- 3 to 4 years: 30 hours per week (1,140 hours per year)
The government expanded the scheme in 2024 to include children from 9 months to 4 years old, with the expansion now fully implemented.
Who is eligible for free childcare hours?
To be eligible for free childcare as a working parent, the child you claim for must usually live with you. Additionally, you (and your partner, if you have one) will need to:
- Have a National Insurance number. If you can't remember it or don’t have one, you can check it online or apply to get a National Insurance number if you've never had one.
- Earn at least £183 per week (less if you're under 21). This is the equivalent of working 16 hours per week on the National Living Wage. If you have a partner, you must each earn at least this much.
- Have an adjusted annual net income under £100,000. This is your income before tax, but after deductions like Gift Aid donations and pension contributions. It applies to your individual income, not your household income.
Eligibility also depends on your immigration status. You will need to have at least one of the following:
- British or Irish citizenship
- Settled or pre-settled status (you may still be eligible if you've applied but don't have a decision yet)
- Permission to access public funds as part of your residency
Alternative eligibility for non-working parents
If you're not eligible as a working parent, you may still qualify for the free early education entitlement (FEEE) scheme, which provides:
- 15 hours free childcare for 2-year-olds whose parents receive certain benefits
- 15 hours free childcare for all 3 and 4-year-olds regardless of parental income
How is free childcare calculated?
The free childcare entitlement is calculated as a total number of hours per year:
- 15 hours per week = 570 hours per year
- 30 hours per week = 1,140 hours per year
These hours are typically allocated during term time (38 weeks), but many providers offer the option to "stretch" these hours across more weeks, resulting in fewer hours per week but covering school holidays.
How to apply for 15 hours free childcare
To get your free childcare hours (whether 15 or 30 hours depending on your child's age), you'll need to follow these steps:
- Set up a childcare account on the government website
- Apply for an eligibility code
- Give this code to your childcare provider
The application process is the same regardless of whether you're applying for 15 hours (for children aged 9 months to 3 years) or 30 hours (for children aged 3-4 years).
When to apply for free childcare hours
The timing of your application depends on your child's age and when they become eligible:
- For children aged 9 months to 2 years: Apply for 15 hours per week
- For children aged 2 to 3 years: Apply for 15 hours per week
- For children aged 3 to 4 years: Apply for 30 hours per week
You'll usually apply during the term your child becomes eligible, and the free hours will start the following term.
For example, if your child turns 9 months old in April, you can apply that spring term, and the free hours will start in the summer term.
How to get free childcare code
To get your eligibility code:
- Visit the Childcare Choices website
- Create or sign in to your account
- Provide details about yourself, your partner (if applicable), and your child
- If eligible, you'll receive a code to give to your childcare provider
Once you're receiving free childcare hours, you'll need to reconfirm your eligibility every three months through your online account.
Other schemes to help with childcare costs
Even with free childcare hours, parents working full-time may still have additional costs. Here are other schemes that can help:
Tax-free childcare
your online childcare account, the government adds £2. If eligible, you can receive up to £2,000 per year (more if your child has a disability). This can be used alongside free childcare hours and continues once your child reaches school age to help with wraparound care like before and after-school clubs.
Child Benefit
Child Benefit provides £25.60 per week for the oldest child in your household and £16.95 per week for each younger child. This payment can be used however you choose, including for childcare costs.
Extra help for those on Universal Credit
People on Universal Credit can claim back up to 85% of their childcare costs, up to a maximum of £1,014.63 per month for one child, or £1,739.37 per month for two or more children. Note that you can't use Tax-Free Childcare if you're getting help with childcare costs through Universal Credit, as this could affect your overall benefits entitlement.
Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.
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