Navigating the world of childcare funding in the UK can be a bit overwhelming. However, the government offers various schemes to make it more affordable for families. This blog post will break down how government childcare funding works, explain the concept of "stretched funding," and cover the changes that are coming into effect next year.
1. The Basics of Government Childcare Funding
In the UK, government childcare funding is designed to help parents with young children reduce the cost of childcare. The main schemes available include:
15 Hours Free Childcare for All 3 and 4-Year-Olds: All parents in England can access 15 hours of free childcare each week during term time (38 weeks a year), starting the term after their child's third birthday. This is open to everyone, regardless of income or employment status.
15 or 30 Hours Free Childcare for Working Parents: If both parents (or a single parent in a single-parent family) earn at least the National Minimum Wage for 16 hours a week but less than £100,000 a year, they are eligible for 15 hours for 2-3 year-olds or 30 hours for 3-4 year-olds of free childcare per week. Again, this applies during term time only. From September 2025 the 30 hour offer will be extended to children from 9 months old.
Tax-Free Childcare: This scheme is available to working families, including those who are self-employed. For every £8 you pay into your online childcare account, the government adds £2, up to a maximum of £2,000 per child per year (£4,000 if your child has a disability). Remember this can be used in conjunction with the free funding hours!
Free Childcare for 2-Year-Olds: If your family is on a low income, receiving certain benefits, or your child has a disability, you might qualify for 15 hours of free childcare per week for your 2-year-old.
2. What is Stretched Funding?
We only offer stretched funding when it comes to funded childcare. Normally, the free hours (whether 15 or 30) are available for 38 weeks of the year, which aligns with the school term. However, we stretch these hours over the full 52 weeks, allowing you to spread the free hours across the entire year.
Instead of taking the free hours in line with school terms, you spread these hours out over the full 52 weeks of the year. For example, if you are eligible for 30 hours free funding it may become around 22 hours a week across the whole year.
Stretched funding helps parents who need consistent childcare throughout the year, rather than just during term times.
Your funded hours are automatically deducted from your invoice at the end of each month (once you've provided us with your code) and the balance is paid by you via Direct Debit.
3. Changes Coming in 2025: What You Need to Know
The UK government is set to expand free childcare funding again in September 2025. These changes aim to make childcare more accessible and affordable for even more families. Here's what’s coming:
September 2025: The government plans to extend the hours for children aged 9 months to 3 years, increasing the free childcare entitlement from 15 hours to 30 hours per week. This will put childcare for younger children on par with the current offer for 3 and 4-year-olds.
These changes aim to support parents returning to work sooner after having a baby and will significantly reduce childcare costs for many families.
4. What Should You Do Next?
To take advantage of these changes, it’s important to:
Check Your Eligibility: Visit the government's childcare calculator to see which schemes you qualify for and how much you could save. Homepage | Childcare Choices
Apply for Free Childcare Hours or Tax-Free Childcare: You’ll need to set up an account and apply for your chosen scheme to start benefiting from the free hours or tax-free savings. Apply for free childcare if you're working - GOV.UK (www.gov.uk)
Speak to us about our availability. We only offer stretched funding at Pine Rivers, term time only is not possible. We have a minimum of 2 days a week required and one of those days must be a Monday or Friday. Places fill very quickly so please contact us as soon as possible to discuss your requirements. The quickest way to do this is to email admin@pinerivers.co.uk where Alice will be able to send you an application form and welcome pack.
Final Thoughts
Most of our parents are working parents so the expansion of government childcare funding over the next year is welcome news, especially those with younger children. By understanding how these schemes work and taking advantage of stretched funding in combination with the offer of tax-free childcare, you can make childcare more affordable and manageable for your family. Keep an eye on the changes coming next year, and plan ahead to maximize the benefits for your household.
Navigating childcare costs doesn’t have to be daunting—with a little preparation, you can make the most of the government’s offerings and give your child the best possible start. And as always if you have any questions we are here to help.
Comments