Family and Childcare Costs UK 2026 — Complete Financial Planning Guide

Free Childcare Hours Explained — 2026 Expansion Guide

A complete guide to funded childcare hours in England, Scotland, Wales, and Northern Ireland — including the 2026 expansion to working parents of children from 9 months old.

Start here: Family Costs Hub.

The UK government provides funded childcare hours to help with the cost of childcare. The entitlements differ depending on your child’s age, whether you work, and which country you live in.

Funded Childcare Hours — England

Full Entitlements (from September 2025)

Child’s ageHours per weekWeeks per yearTotal hours per yearEligibility
9 months – 23 months30 hours38 (term time)1,140Both parents working (or sole parent working)
9 months – 23 months15 hours38 (term time)570Parent on qualifying benefits (not working)
2 years old30 hours38 (term time)1,140Both parents working
2 years old15 hours38 (term time)570Parent on qualifying benefits or all families (check latest rules)
3–4 years old30 hours38 (term time)1,140Both parents working
3–4 years old15 hours38 (term time)570All families — universal entitlement

Roll-Out Timeline

DateChange
Existed before 202415 hours for all 3–4 year olds; 30 hours for working parents of 3–4 year olds; 15 hours for disadvantaged 2 year olds
April 202415 hours extended to working parents of 2 year olds
September 202415 hours extended to working parents from 9 months old
September 202530 hours extended to all working parents from 9 months old

Working Parent Eligibility

RequirementDetail
Minimum earningsEach parent must earn at least £8,670 per year (equivalent to 16 hours per week at National Living Wage)
Maximum earningsNeither parent can earn over £100,000 per year
Self-employedCounts — you must expect to earn at least £8,670 per year
On maternity/paternity leaveStill eligible — the working test is based on your normal employment
StudentMay be eligible if working the required hours alongside study
Single parentOnly your income is assessed
CoupleBoth parents must meet the minimum earnings test
One parent works, one doesn’tOnly 15 hours universal entitlement (for 3–4 year olds) — not the 30-hour working parent entitlement

Exceptions to working requirement: The non-working parent is exempt if they receive Incapacity Benefit, Severe Disablement Allowance, ESA (support group), Carer’s Allowance, or a National Insurance credit for caring for a severely disabled person.

How to Apply (England)

StepWhat to do
1Go to childcarechoices.gov.uk
2Create a Government Gateway childcare account
3Enter your details — employment, income, National Insurance number
4Receive your eligibility code (usually within a few days)
5Give the code to your childcare provider
6Reconfirm eligibility every 3 months — if you miss reconfirmation, you lose entitlement

Key Dates

TermApply byHours start
Autumn term (September)31 August1 September
Spring term (January)31 December1 January
Summer term (April)31 March1 April

Apply at least 2–3 months before the date you need the place — popular settings fill up quickly.

Funded Childcare — Scotland

EntitlementHours per yearEligibility
All 3- and 4-year-olds1,140 hours per yearUniversal — all families
Eligible 2-year-olds1,140 hours per yearFamilies receiving qualifying benefits

Scotland — Eligible 2-Year-Olds

Your 2-year-old qualifies if you receive:

Benefit
Income Support
Income-based Jobseeker’s Allowance
Income-related Employment and Support Allowance
Universal Credit (income below threshold)
Tax credits (income below £16,480)
Support under the Immigration and Asylum Act
Pension Credit (guarantee element)

Also eligible: looked-after children, children with a parent who is a care leaver (up to age 26), and children who are the subject of a kinship care order.

How to apply (Scotland): Contact your local council’s early years team directly.

Funded Childcare — Wales

EntitlementHours per weekEligibility
Foundation Phase Nursery10 hours minimum (term time)All 3–4 year olds — delivered by schools
Childcare Offer for Wales30 hours total (20 hours childcare + 10 hours Foundation Phase)Working parents of 3–4 year olds
Flying Start12.5 hours per weekChildren aged 2–3 in eligible areas

Wales — Working Parent Eligibility

RequirementDetail
Minimum earningsEach parent earns at least equivalent of 16 hours at NMW
Maximum earningsNeither parent earns over £100,000
ApplicationThrough your local council

Funded Childcare — Northern Ireland

EntitlementHoursEligibility
Pre-school education12.5 hours per week (term time)All children in their final pre-school year (3–4 year olds)
No additional hours schemeNorthern Ireland does not currently offer a 30-hour scheme

What Funded Hours Cover — and Don’t Cover

CoveredNot covered (you may be charged)
The childcare place itselfMeals and snacks
Staffing and facilitiesNappies and wipes
Basic activities and resourcesSun cream and toiletries
Trips and outings
Additional hours beyond entitlement
Registration or admin fees charged by some providers

Providers cannot charge a top-up fee for the funded hours themselves. They can only charge for genuine optional extras. If a provider says you must pay a “top-up” to access funded hours, this is not permitted — report it to your local council.

Typical Additional Costs

ExtraTypical cost
Meals (per day)£3–£8
Consumables pack (per term)£20–£50
Additional hours (per hour)£5–£10

Stretching Your Hours

You can often “stretch” your funded hours across more weeks rather than taking them only in term time:

OptionHow it works
Term time only (38 weeks)30 hours per week × 38 weeks = 1,140 hours
Stretched across 51 weeksApproximately 22 hours per week × 51 weeks = 1,140 hours
Custom arrangementAgree a pattern with your provider that uses 1,140 hours across the year

Not all providers offer stretched hours — check with your setting.

Tax-Free Childcare

On top of funded hours, you may qualify for Tax-Free Childcare to help with costs beyond your free entitlement:

DetailInformation
How it worksFor every £8 you pay in, the government adds £2 (20% top-up)
Maximum per child per year£2,000 (government contribution) — so you pay £8,000 and get £10,000
Disabled childrenMaximum £4,000 per year (you pay £16,000, get £20,000)
EligibilitySame as 30-hour funded childcare — both parents working, earning £8,670–£100,000
How to applychildcarechoices.gov.uk
Can I use both?Yes — use funded hours for the first 30 hours, then Tax-Free Childcare for additional hours

Important: You cannot claim Tax-Free Childcare and childcare vouchers at the same time. Tax-Free Childcare is also not compatible with receiving the childcare element of Universal Credit or Working Tax Credit. Compare the value of each before choosing.

Childcare Costs — Working Out the Best Option

ScenarioBest option
Working parent, child over 9 months, earning £8,670–£100,00030 funded hours + Tax-Free Childcare for extra hours
On Universal Credit30 funded hours (if working enough) + UC childcare element (up to 85% of costs)
Not working, child aged 3–415 universal hours
On qualifying benefits, child aged 215 funded hours
Working parent in Scotland, child 3–41,140 hours per year (council delivered)

Cost Comparison — With and Without Help

Annual childcare cost for one child, 50 hours per week (nursery in England):

ScenarioAnnual cost to parent
No help at all (50 hrs × £6/hr × 51 weeks)£15,300
30 funded hours only (20 extra hrs paid)£6,120
30 funded hours + Tax-Free Childcare£4,896
30 funded hours + UC childcare element (85%)£918

The combination of funded hours and government support can reduce costs dramatically.

Application Checklist

TaskWhen
Check your eligibility at childcarechoices.gov.ukNow
Create Government Gateway childcare account2–3 months before needed
Get your eligibility codeAllow up to 2 weeks
Find a provider and share your codeAs early as possible
Set a reminder to reconfirm every 3 monthsImmediately — missing reconfirmation loses entitlement
Compare Tax-Free Childcare vs UC childcare elementBefore choosing

Sources

  1. MoneyHelper — Everyday money