Funded childcare for 2-year-olds - information for practitioners
Funded childcare for 2-year-olds - information for practitioners
The 2-year-old funding allows eligible 2-year-old children to access a funded early education place with a childcare provider.
- A child who turns 2 in January, February or March can have their funded place from the start of the summer term
- A child who turns 2 in April, May, June, July or August can have their funded place from the start of the autumn term
- A child who turns 2 in September, October, November or December can have their funded place from the start of the spring term
See further information about:
- 2-year-old funding for children of working families
- 2-year-old funding for families receiving additional government support
If you’re a parent or carer looking for more information, visit the childcare section.
2-year-old funding for children of working families
From April 2024 working families may be eligible to receive up to 15 hours funded childcare per week (38 weeks per year), the term after their child turns 2.
This will increase to 30 hours per week from September 2025.
Eligibility criteria
The parents have to meet 1 of the following criteria:
- both parents are working (or sole parent in a lone parent family) and each parent earns on average;
- a weekly minimum equivalent to 16 hours at national minimum wage (NMW) for under 25-year-olds, or;
- national living wage (NLW) if over 25-years-old, and;
- less than £100,000 per year
- both parents or carers are employed but 1 or both parents or carers is temporarily away from the workplace on parental, maternity, paternity or adoption leave or statutory sick pay, or;
- 1 parent or carer is employed, and the other parent or carer has substantial caring responsibilities based on specific benefits received for caring, or;
- 1 parent or carer is employed, and 1 parent or carer is disabled or incapacitated based on receipt of specific benefits
How to apply
Families should apply on the Childcare Choices website.
If eligible, they will receive an 11-digit eligibility code which must be taken to their chosen provider and entered onto the Parental Declaration Form before their child takes up a funded early years and childcare place.
The family can only start claiming their funded entitlement in the term following the child’s second birthday or the term following the date when the eligibility code was issued, whichever is later.
Reconfirmation
The parents must go onto the Childcare Choices website and reconfirm their eligibility every 3 months in order to ensure the validity of their code.
The parents must reapply by:
- 31 March for the summer term
- 31 August for the autumn term
- 31 December for the spring term
If they miss the reconfirmation deadline, they'll receive a message telling them that their eligibility has lapsed. They should go into their childcare account and reconfirm.
If they are no longer eligible for the funded entitlement, they will enter a grace period where they may be able to retain their entitlement for a short period of time.
Please note: new children cannot take up a place with a provider if they are currently in their grace period.
Providers should remind parents to check codes:
- when they are in their grace period
- if the end date for eligibility is that term
2-year-old funding for families receiving additional government support
Some 2-year-olds whose parents receive additional government support could be eligible for 15 hours funded childcare per week (38 weeks per year), the term after their child turns 2.
This is a different stream of 2-year-old funding to 2-year-old funding for children of working families.
Eligibility criteria
If the family claims any one of the following, their 2-year-old could be eligible:
- Universal Credit, and your household income is £15,400 a year or less after tax and NI contributions, and not including benefits (assessed on three most recent assessment periods)
- Income Support
- Income-based Jobseekers Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Child Tax Credit or Working Tax Credit and your household income is £16,190 a year or less before tax (but not both) (TC602 Final Award Notice)
- The guaranteed element of State Pension Credit
Non-economic criteria
2-year-olds could also be eligible if they meet any of the following non-economic criteria:
- attract Disability Living Allowance (DLA)
- are looked after by their local authority
- have left care through special guardianship or through an adoption or residence order
- have an Education, Health and Care Plan (EHCP)
No recourse to public funds families
If a parent’s immigration status says they have ‘no recourse to public funds’, they may be eligible for the 2-year-old funding. They must live in England and their household income must be no more than:
- £26,500 for families outside of London with 1 child
- £30,600 for families outside of London with 2 or more children
They cannot have more than £16,000 in savings or investments.
Documentation will be required as proof where an application is made against these additional criteria.
How to apply
There may be children currently attending a setting who may qualify for a funded childcare place. Families who may be eligible should be encouraged to complete an online application form or contact the Family Information Service on telephone: 01904 554444 to complete an application over the phone.
If eligible, the family will receive a 6-digit voucher code from the local authority which must be taken to their chosen provider and entered onto the Parental Declaration Form before their child takes up a funded early years and childcare place.
Please note: If circumstances change the family will not lose eligibility for this stream of 2-year-old funding. This is not the case for the working family entitlement however as parents are required to confirm their circumstances every 3 months.
