Important
For working family funding entitlements (30 hours), you must apply for your eligibility code by 31 August 2025 to claim funding in the Autumn Term.
2 Year Old Funding
15 hours per week of free childcare is available for 2 year olds who meet the criteria below. Children must meet either criterion A, B, C or D to be eligible for funding.
Criterion A
Economic: Children whose parents/carers are in receipt of one or more of the following benefits:
- Income Support
- Income based Job Seekers’ Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Universal Credit - if the combined household (both parents) income from work is £15,400 or less a year, after tax, not including benefit payments
- Tax Credits, and the combined household (both parents) income is £16,190 or less a year, before tax.
- Guaranteed Element of the State Pension Credit
- Working Tax Credit 4-week run on (the payment you get when you stop qualifying for Working Tax Credit)
Criterion B
Children looked after by the Local Authority:
- Child in Care ‘looked after’
- Child has left care under an adoption order, special guardianship order or a child arrangements order.
N.B. Details of a Social Worker able to verify the above information is required.
Criterion C
Child with Special Educational Needs and/or Disability as defined by:
- Children in receipt of Disability Living Allowance (DLA).
- Child with a current Statement of Special Educational Needs (SEND).
- Child with an Education, Health and Care (EHC) Plan.
Note: Documentation copies are required to verify eligibility for Criterion C.
Criterion D
Non-UK citizen who cannot claim benefits:
Parents with immigration status with ‘no recourse to public funds’ may still get free childcare for their two year old. They must live in England and the combined household income after tax must be no more than:
- £26,500 for families outside of London with one child
- £34,500 for families within London with one child
- £30,600 for families outside of London with two or more children
- £38,600 for families within London with two or more children
Cannot have more than £16,000 in savings or investments.
Once a child's funding has been agreed, it will continue even if the family’s circumstances change at a later date.
Expansion of criteria for eligible working parents from April 2024
The 2 year old funding criteria expanded in April 2024 to include 2 year olds of eligible working parents. The criteria includes households where both parents are working (or if a single parent household – that parent is working) and earning at least £195 per week (the equivalent of 16 hours a week at minimum wage) and each parent earning no more than £100,000 adjusted net income or more.
To apply for an eligibility code visit the Childcare Choices website. This application relates to the new 2-year-old funding criteria for working parents.
Parents must apply by the end of the month before a new term starts in order for their code to be valid. As with the existing criteria, eligible children can get funding from the school term following their second birthday. Parents/carers must provide eligibility codes under the working parent criteria to their chosen childcare provider in order for them to claim the funding on their child’s behalf.
From September 2025, the working family funding entitlement will increase up to 30 hours per week.
Apply for free childcare for 2 year olds
You can apply by contacting an approved childcare provider in the borough
The provider must be registered to offer free places for 2 year olds. They will ask you to provide proof of eligibility, for example a benefit award letter. They can also request an eligibility check on your behalf.
Find a free childcare provider
They will let you know when the funding can start.
When will my child be eligible for the free entitlement?
| Child born between | Term they can start |
|---|---|
| 1 September and 31 December is eligible from January | Spring Term |
| 1 January and 31 March is eligible from April | Summer Term |
| 1 April and 31 August is eligible from September |
Autumn Term |
Application process for parents starting or returning to work
Changes have been made to Childcare Regulations to extend the application window for those who are planning to start a new job or return to work from parental leave. This includes maternity, paternity, shared parental or adoption leave or pay.
In the past, parents were only able to apply for an eligibility code 31 days before the date they started new work or returned to work from parental leave.
As part of the new changes, parents who plan to start or return to work on or before 31 September 2024 will be able to apply for a code from 12 May, alongside other parents who intend to take up a place in September.
Parents in this situation will need to apply online as normal but will receive a letter in the post, enabling them to access their entitlement.
Parents who plan to start or return to work between 1 October 2024 and 31 January 2024 will be able to apply for a code from 1 September 2024 to use from 1 January 2025. Apply here Childcare Choices website
In future terms, parents will be able to apply from the following dates in the table below:
| Date of Starting or Returning to work | When can parents apply from | When parents can use entitlements from |
|---|---|---|
| 1 May to 31 September | 1 April to 31 August | 1 September |
| 1 October to 31 January | 1 September to 31 December | 1 January |
| 1 February to 30 April | 1 January to 31 March |
1 April |
Early Years Pupil Premium (EYPP)
Early Education providers may be eligible for EYPP to help support a child. This funding is provided to help improve the learning and development of disadvantaged 9 months - 4 year old olds.
The early education providers can receive up to £388 per year to help with the child's education. The funding is directly sent to early years education providers.
EYPP Eligibility
In order to be eligible for the EYPP funds, your child must be aged 9 months - 4 year old obtaining 15 hours free childcare.
You must get one of the following to qualify:
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Support under part six of the Immigration and Asylum Act 1999
- The guaranteed element of State Pension Credit
- Child Tax Credit (provided you are not also entitled to Working Tax Credit) and have an annual gross income of no more than £16,190
- Working Tax Credit run-on, which is paid for 4 weeks after you stop qualifying for Working Tax Credit
- Universal Credit - your household income must be less than £7,400 a year after tax not including any benefits you get
You may also qualify if your child is:
- A looked after child
- Adopted
- Special Guardianship order
- Child Arrangements order
To apply for EYPP fund, contact your childcare provider.
Deadline for claiming funding
Children eligible for funding under the 2 year old working family criteria can claim funding until half term. The latest they can start is the first day after half term, as long as we are notified by the Friday before half term via the childcare provider. After this deadline, claims under the working family criteria will not be accepted until the following term. Children eligible under the 2 year old means tested benefit criteria for disadvantaged families can claim funding throughout the term.