How can working parents get 30 hours of free childcare?

The ambitious expansion of government-funded childcare in England has begun to reshape the financial landscape for many working families, though its impact remains uneven across the UK. Since September 2025, eligible working parents of children aged between nine months and four years old in England have been entitled to 30 hours a week of government-funded childcare during term time, a policy designed to ease the burden of childcare costs and support parents’ return to work.

The latest annual survey from the Coram Family and Childcare charity, conducted in 2026, offers the first comprehensive look at the effects of this full rollout. According to their findings, the cost of a full-time nursery place for a child under two in England has fallen by nearly 40% for some families who qualify for the new scheme. This significant reduction means the average cost for eligible families is now just under £149 per week in 2026, down from £245 in 2025 for a full-time (50 hours a week) nursery place. This represents a tangible saving for those who meet the criteria, allowing many to re-enter the workforce or increase their hours.

How expensive is childcare in the UK?

While England has seen a notable decrease for eligible families, the picture is starkly different for those who do not qualify for the funded hours, and for families in Scotland and Wales. Coram’s 2026 survey highlights a worrying trend: childcare costs have actually risen for families in England who are not eligible for the funded hours, either because they are not in work, do not earn enough, or do not meet other specific criteria. This suggests that providers may be increasing fees for non-funded places to cross-subsidise the government-funded hours, which some argue do not cover the true cost of provision. The charity warns of a potential two-tier system, where disadvantaged children may have less access to vital early years education than those from working families benefiting from the scheme.

The situation in Scotland and Wales underscores this disparity. Families in these devolved nations have not seen their childcare costs fall; instead, they have continued to climb. Coram’s data suggests Wales is now the most expensive place for under-twos, with a full-time nursery place costing an average of £325 a week, an 11% increase from 2025. A similar full-time nursery place in Scotland costs £259 a week, up 5% from the previous year. The cost of a full-time place for three and four-year-olds has also seen increases across England (for non-eligible families), Scotland, and Wales, adding further pressure on household budgets.

In Northern Ireland, separate figures from 2024 (the most recent available) indicated that the average monthly cost of childcare was also substantial. While specific average figures for different types of care in 2024 were not detailed in the original data, families typically faced costs such as approximately £800-£1,000 for a full-time nursery place, £500-£700 for a childminder, and £200-£300 for after-school care. These figures highlight the widespread challenge of childcare affordability across the entire UK.

How does funded childcare in England work?

In England, the government’s childcare offer is multi-faceted. All three and four-year-olds are universally eligible for 15 hours of government-funded childcare per week, regardless of their parents’ working status. This entitlement aims to provide a baseline of early education for all children before they start school.

For working parents, the offer expands significantly. To qualify for the 30 hours of funded childcare, parents must meet specific criteria:

• Age of Child: The entitlement rolls out in stages. From April 2024, eligible working parents of two-year-olds became entitled to 15 hours. From September 2024, this extended to 15 hours for working parents of children from 9 months old. The full 30 hours for working parents of children from 9 months up to school age became available from September 2025.
• Working Status: Both parents (or the sole parent in a single-parent household) must be working. This includes being employed, self-employed, or on parental leave.
• Income Thresholds: Each parent must earn at least the equivalent of 16 hours at the National Minimum Wage or Living Wage per week. For 2025/2026, this threshold would be approximately £125 per week per parent. Conversely, neither parent should have an adjusted net income over £100,000 per year.
• Specific Circumstances: Parents who do not work might still be eligible for 30 hours of free childcare if their partner works, or if they receive certain benefits – for example, if they are on maternity, paternity, or adoption leave, or if one parent is disabled and receiving specific benefits while the other works.

Those on certain benefits can also receive significant support for childcare costs, often in conjunction with funded hours or to cover additional expenses. This typically includes:

• Universal Credit: Working parents claiming Universal Credit can get up to 85% of their childcare costs paid, up to a monthly cap (e.g., £951 for one child, £1,630 for two or more children).
• Working Tax Credit or Child Tax Credit: Families claiming these legacy benefits could receive help with up to 70-80% of their childcare costs, up to certain limits.
• Other Benefits: Parents on Income Support, Jobseeker’s Allowance (JSA), or Employment and Support Allowance (ESA) may also be eligible for some childcare support, often depending on specific conditions.

The scheme has seen rapid uptake. The most recent official figures show that the number of children receiving free childcare hours in England rose by a substantial 33% in the 12 months to January 2025, reaching a record high of 1.7 million. In September 2025, the government proudly announced that it had exceeded its target to provide funded childcare to an additional half a million children, demonstrating the considerable demand for and impact of the expanded offer.

How do you apply for 15 or 30 hours of funded childcare?

The application process for the working parent entitlement is managed through the government’s online portal. For the 30 hours for working parents, you can apply once your child is 23 weeks old. However, the funding itself only starts at the beginning of the term after the child reaches the relevant age (e.g., nine months, two years, or three years).

It’s crucial to be aware of the term start dates, which are fixed: 1 September, 1 January, and 1 April. If your child is eligible but you don’t apply and receive your eligibility code before the start of the relevant term, your funding won’t begin until the start of the following term. This means missing the deadline can delay your access to vital support. Once your application has been approved, you will receive an 11-digit code which you need to give to your chosen childcare provider. They will then use this code to claim the funding on your behalf.

The funded childcare hours are primarily designed to be used over 38 weeks of the year, aligning with school term times. However, many childcare providers offer flexibility, allowing parents to "stretch" these hours over 52 weeks if their children attend for fewer hours per week. This can be particularly useful for parents needing year-round childcare, although it means receiving fewer funded hours during any given week.

What is not covered by the funded childcare?

While the government has increased the hourly rate it pays childcare providers offering funded hours, a significant point of contention has emerged regarding "extras." These often include costs for meals, snacks, nappies, trips, and additional activities that nurseries and childminders provide.

In February 2025, the Department for Education (DfE) wrote to nurseries, stipulating that parents should be able to opt out of paying for these extras, "to ensure no family is priced out" of the funded childcare. However, this directive sparked considerable backlash from the childcare sector. Many providers argue that they use these payments to subsidise the true cost of delivering the funded hours for three and four-year-olds, as the government’s hourly rate often falls short of their operational expenses. Over 5,000 nurseries signed an open letter to the DfE, asking for the new opt-out rules to be delayed, citing fears of financial instability and potential closures if they could not cover their costs. The lack of affordable childcare is a significant barrier for many people hoping to work, and the sustainability of the sector is paramount.

Are there enough childcare places?

The success of the expanded childcare scheme hinges not just on funding, but also on the availability of places and a skilled workforce. The DfE had previously stated that an additional 35,000 staff and 70,000 places would be needed to meet demand by September 2025, when the funded hours were fully rolled out. While official figures showed that the number of childcare places had risen by 44,400 between 2023 and 2024, the education regulator Ofsted has warned that these places have not been evenly spread across the country, leading to ‘childcare deserts’ in some areas.

Compounding this, the number of childminders – those providing early years care in private homes, often a flexible and affordable option – has continued to decrease. Early years charities are also concerned by the latest figures from the DfE, which show that the number of two-year-olds from disadvantaged backgrounds receiving funded hours is down from 75% in 2024 to 65% in 2025. While the DfE cautions that some families may have been incorrectly recorded in the statistics, requiring these figures to be treated with caution, it highlights a potential gap in provision for vulnerable children.

A critical area of concern identified by Coram’s latest "sufficiency" survey of local authorities is the severe lack of early years childcare places for children with special educational needs and disabilities (SEND). While three-quarters of local authorities in England reported having enough childcare for at least 75% of children under two who are eligible for the 30-hour entitlement, the figures for SEND children are alarming. Fewer than half of local authorities in England (44%) reported having sufficient childcare for early years children with SEND in their area, and this figure plummets to just 23% for school-aged children with SEND. This shortage leaves many families struggling to find appropriate and inclusive care.

To help boost capacity, the government announced that more than 5,000 new childcare places opened in nurseries on school sites in September 2025. However, the Early Years Alliance charity paints a concerning picture of the sector’s health, reporting that about 185 of 1,100 private nurseries it surveyed were "likely" to withdraw from the scheme within the next 12 months "due to unsustainable financial pressures." This suggests that despite the increased funding and places, the sector faces ongoing challenges that could undermine the long-term success of the expansion.

What childcare help is available in Scotland, Wales and Northern Ireland?

While England’s system has seen significant changes, the devolved nations operate their own distinct childcare support schemes:

• Scotland: Provides 1140 hours of funded early learning and childcare per year for all three and four-year-olds, as well as for eligible two-year-olds. This is equivalent to around 30 hours per week during term time and can be taken flexibly with registered providers.
• Wales: Offers 30 hours of funded childcare per week for working parents of three and four-year-olds for 48 weeks of the year. This scheme combines the existing Foundation Phase (education) entitlement with additional childcare hours. The "Flying Start" programme also provides free childcare for some two-year-olds in disadvantaged areas.
• Northern Ireland: While not having a direct "funded hours" scheme akin to England or Wales for all working parents, it offers various forms of support. This includes a subsidy for children with disabilities attending post-primary or special schools up to age 16. Families can also access support through Universal Credit, Tax-Free Childcare (as detailed below), and specific local programmes like Sure Start, which offers support to families in disadvantaged areas, including some childcare provision.

How does tax-free childcare work?

Tax-Free Childcare is another crucial government scheme available across the UK, designed to help working families with childcare costs. For every £8 paid into an online childcare account by parents, the government adds £2. This top-up is capped at £2,000 per child per year, or £4,000 for disabled children, up to their 11th birthday (or 16th birthday for disabled children).

Parents can use the money from this account to pay for approved childcare, which includes a wide range of providers:

• Registered childminders and nurseries
• Nannies (if registered)
• After-school clubs and breakfast clubs
• Holiday schemes and play schemes

To be eligible, both parents (or the sole parent in a single-parent household) must be working and meet similar income thresholds to the 30 hours funded childcare scheme (earning at least the equivalent of 16 hours at the National Minimum Wage, and neither parent earning over £100,000 adjusted net income). The childcare provider must also be signed up to the Tax-Free Childcare scheme for parents to use their accounts. Importantly, parents who qualify for the free childcare hours in England (or similar schemes in the devolved nations) can also save money in the Tax-Free Childcare scheme to cover any additional hours, extra costs, or care for younger children not yet eligible for funded hours. This dual approach offers significant flexibility and financial relief to many working families navigating the complexities of childcare in the UK.