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Targeted funded childcare offer for working families

Targeted funded childcare offer for working families

Information on funding that's available for working families.

Eligibility criteria

The parent/s must have:

  •  a National Insurance number and be a British or Irish citizen, or:
    • have settled or pre-settled status, be awaiting a decision following application, or have permission to access public funds
  • families must be living in England, and:
    •  at least one parent should be seeking the funded childcare to enable them to work
    • parent/s must be in qualifying paid work and earn the equivalent of 16 hours per week at the national living wage or minimum wage over the forthcoming quarter
    • if one or both parents receive sickness or parenting benefits, they are considered in paid work
    • where one parent (in a couple household) receives or could receive specific benefits related to caring, incapacity for work or limited capability for work, they are also considered in paid work

Where a parent is in a ‘start-up period’, for example they are newly self-employed, they do not need to demonstrate that they meet the income criteria for 12 months to qualify for the funding.

Families are ineligible if either or both parent’s income individually exceeds £100,000.

How to apply

Applications for funding must be made to HMRC before the term starts and must then be refreshed every 3 months. A child only becomes eligible for working families funding from the term after they become the right age and a successful application has been made. If applications are made after the start of term, funding cannot start until the next term. 

Families will be sent an Eligibility Code to give to their child’s setting, along with proof of the child’s date of birth in the form of a birth certificate, passport, or health record.

To access funded childcare in the: Applications must be submitted by:
Autumn term (1 September to 31 December) 31 August
Spring term (1 January to 31 March) 31 December
Summer term (1 April to 31 august) 31 March

What if my circumstances change?

The Eligibility Code you are given when applying must be refreshed every 3 months. If you stop meeting the eligibility criteria or do not refresh your Eligibility Code, your child will enter a ‘Grace Period’ and will be able to continue accessing the 15 funded hours until the end of term.

If your child is 3 or 4 years of age, they will continue to be eligible for the 15-hour Universal funding offer. If your child is two years of age, they may be eligible for the targeted childcare funding for two year olds.

Once you have been awarded two-year-old funding, it will remain in place until the end of the term in which your child turns three years of age, even if your circumstances change.

Additional charges

Lunchtimes 

The funded place can be taken over a lunch break if this is offered by your childcare setting. Your setting may offer a meal at an additional cost, or you may be able to take a packed lunch; this should be discussed with your childcare setting before taking up the place.

Holiday and absent periods

If your child is accessing their funded hours over more than 38 weeks (stretched), you should not be charged during the holiday periods unless your child is accessing additional hours or services.

If your child is accessing their funded hours on a ‘term-time only’ basis and you do not wish to access paid for hours over the holidays, your childcare provider may not be able to guarantee your child’s place for the following term. You may be offered the option of paying a retainer to secure the place. This should be discussed with your child’s setting.

You are not able to claim back any funded hours that you child has been unable to attend. This includes illness, holidays, or any other absence. The funded hours will be used to keep your child’s place open until their return.

Additional hours

You cannot be charged a registration fee if your child only accesses the funded hours. If using additional hours or services, you may be charged a registration fee, this should be discussed with your childcare setting.

If you are booking your child’s place in advance, you may be charged a refundable deposit to secure the place. This must be refunded to you by the end of the first term in which your child accesses funded hours.

Entitlement to benefits

Accessing your child’s free entitlement should not have a negative impact on your financial status, however it may reduce the amount of money you receive towards your childcare costs.

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