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Introduction: Navigating Childcare Funding in 2025

Childcare in the UK is undergoing significant reform. With the introduction of expanded government support for working families and increased access to funded hours for younger children, it has never been more important for parents to understand exactly what they are entitled to, how the schemes work, and how to access them. At Shine Childcare, we know from years of working with families across Leeds, Halifax, Oldham and Huddersfield that government guidance can be unclear and intimidating. That’s why we’ve created this definitive guide—to explain every part of the current and upcoming funding structure, to help you work out what’s available for your child, and to offer real help in applying.

This guide is written for parents. We’ve stripped away the jargon, explained key deadlines and requirements, and shown how each age bracket is supported—now and in the future. We’ll also walk you through the practical limitations, like term-time funding and additional charges, and explain how Shine supports you in the application process.

If you’re looking for a single, accurate, parent-friendly source of truth for nursery funding in England—this is it.

1. Understanding Government Funded Childcare

Government-funded childcare refers to schemes introduced by the UK government to support families with the cost of early years education. These schemes serve a dual purpose: they improve outcomes for children by allowing access to high-quality early education from a young age, and they help parents to stay in or return to the workforce by reducing the burden of childcare costs.

Currently, childcare funding is available in stages, depending on the age of your child and your family’s income and work status. These entitlements are delivered through registered early years providers like Shine Childcare, and are administered locally by your council. However, the schemes themselves are national, meaning the same general rules apply whether you live in Leeds, Huddersfield, Oldham, Halifax or elsewhere in England.

The core government offers as of June 2025 include:

A universal 15-hour entitlement for all 3- and 4-year-olds.
An extended 30-hour entitlement for working parents of 3- and 4-year-olds.
A newly introduced 15-hour entitlement for working parents of 2-year-olds (launched April 2024).
A newly introduced 15-hour entitlement for working parents of children aged 9 months and older (launching September 2024).
A forthcoming expansion (September 2025) to offer 30 hours of funded childcare for all eligible working families with children aged 9 months to school age.

Each scheme has its own eligibility criteria, funding structure, and limitations. Understanding these in depth will help you make informed decisions about nursery care and how to budget for it.

2. Funding by Age Group: What Your Child Is Entitled To

Children Aged 9 Months to 23 Months – New Funding from September 2024

From September 2024, the government started offering 15 hours of funded childcare each week to eligible working families with children aged 9 months and older. This was a landmark change, bringing younger babies into the scope of formal education and giving families a vital financial lifeline during one of the most expensive stages of early parenting.

The entitlement covers 15 hours per week, for 38 weeks of the year (term time only), and must be used with an approved childcare provider such as Shine Childcare. For parents who need year-round care, many nurseries will allow these hours to be “stretched” across the full year—providing fewer hours per week, but over more weeks (for example, approximately 11 hours per week for 51 weeks).

To qualify, both parents (or the sole parent in a single-parent household) must be working and each earning at least the equivalent of 16 hours per week at National Minimum Wage. At the same time, no one in the household can earn more than £100,000 per year. These income rules are strictly enforced, and parents must reconfirm their eligibility every three months to continue receiving the entitlement.

This funding does not cover additional costs such as meals, nappies, or trips—so nurseries may still charge a small fee to cover these extras. The hours themselves, however, are entirely free for those who qualify.

To apply, parents must register through the Childcare Choices website (https://www.childcarechoices.gov.uk/). Once approved, you will receive an 11-digit code which must be passed to your nursery before the term begins. Shine Childcare is fully equipped to support you with this process.

Children Aged 2 Years – Funding from April 2024

As of April 2024, working parents of 2-year-old children are also entitled to 15 hours of funded childcare per week. This scheme is similar to the 9-month-old offer in both structure and eligibility, aiming to increase accessibility for families who previously could not afford nursery fees for this age group.

To be eligible, your child must be 2 years old on or before the start of the relevant term (e.g., by 31st March to qualify for the April term). Both parents must be working and earning a minimum of £8,670 annually and less than £100,000 each. Single parents must also meet these thresholds. The rules are designed to ensure the funding supports low- to middle-income families, while still encouraging employment.

Parents who are not working but who meet certain criteria (e.g., receiving Universal Credit, income support, or have children with additional needs) may still be eligible under the disadvantaged 2-year-old offer, which has existed for several years.

As with the younger age group, the 15 hours can be stretched across the year and do not include the cost of meals, nappies, or other consumables. Some Shine nurseries operate a mixed session model, blending funded hours with paid hours to offer full-day care in a flexible and cost-effective format.

Applications are made through Childcare Choices or your local authority, and an eligibility code must be supplied to the nursery before your child starts. Shine managers are available to guide parents through this application from start to finish.

Children Aged 3 and 4 Years – Existing Funding and September 2025 Expansion

The most established element of the government’s childcare offer is the funding available for 3- and 4-year-old children. This has been available for several years and is split into two parts: universal entitlement and extended entitlement.

Universal entitlement means that every child is entitled to 15 hours of funded childcare per week from the term after their third birthday, regardless of family income or employment status. This continues until they start school. There is no application process for this basic entitlement—it is automatically available and can be accessed through any participating provider, including Shine.

Extended entitlement offers an additional 15 hours per week (bringing the total to 30 hours) for working families who meet the same criteria used in the 2-year-old scheme: both parents working, earning the equivalent of at least 16 hours at National Minimum Wage, and neither earning over £100,000 per year. You must apply and supply an eligibility code to your childcare provider.

These 30 hours apply for 38 weeks per year. If your nursery offers year-round care, you may be able to stretch the funding (reducing the hours per week but increasing the number of weeks covered).

Looking ahead to September 2025, the government has announced that the 30-hour entitlement will be extended to include all children from 9 months to school age. This means that families who qualify will eventually receive the full 30 hours of support starting much earlier, helping to make childcare more affordable across the full pre-school period. Specific implementation details are still being developed and Shine will update this guide as new information becomes available.

3. Practical Rules, Limitations and Common Pitfalls

While the childcare funding system offers significant help to parents, it also comes with a range of important conditions that must be understood and planned for. Many families misunderstand what’s covered, or are caught off guard by limitations that affect how and when funding can be used. In this section, we explain the most common constraints you need to be aware of, and how Shine Childcare helps parents navigate them.

Term-Time Funding vs Year-Round Care

All government-funded hours are calculated based on a 38-week school year. This reflects the term-time pattern used in most state schools. However, many nurseries—including Shine—are open for 50 to 52 weeks per year.

To accommodate families who need childcare during holidays, many providers offer a stretched funding model. This spreads the annual allowance across the full year, reducing the weekly funded hours but extending them over more weeks. Here’s how that works:

15 funded hours (term-time only) becomes approximately 11 hours per week when stretched over 51 weeks.
30 funded hours (term-time only) becomes approximately 22 hours per week when stretched.

It’s important to speak to your nursery manager about whether they offer stretched funding, and how it will work in your specific case. At Shine Childcare, we provide flexible stretched funding options and will help you understand how this impacts your sessions and any additional top-up fees.

Daily Maximums and Session Planning

Parents may not realise that there is a maximum of 10 funded hours per day. This restriction means you cannot use all of your funding in two or three long sessions per week. The aim of this rule is to encourage a regular routine of care and education rather than concentrated bursts.

Our nursery managers will help you build a schedule that makes full use of your funding within these limits while aligning with your working hours.

What Is—and Isn’t—Included in the Funding

A common misunderstanding is that government-funded childcare is completely free. In reality, while the hours themselves are funded, nurseries are allowed to charge for additional items, such as:

Meals and snacks
Nappies and wipes
Sun cream, bottled water, or formula milk (where applicable)
Trips or enrichment activities

These costs vary from nursery to nursery, and reputable providers will make them transparent in advance because they might not always apply. Shine is committed to upfront pricing and provides a clear fee schedule for all parents accessing funded places.Unfortunately there is a great deal of confusion around charges for essentials and extras, with one large group of providers getting together, in order to try and make a legal challenge against the government for forcing rules on the childcare sector which are undemocratic and unreasonable.

Eligibility Timings and Cut-Offs

Eligibility for funded childcare is based on when your child turns the relevant age in relation to the school term calendar. The term start dates used are:

1st January (for Spring Term)
1st April (for Summer Term)
1st September (for Autumn Term)

Your child must have reached the qualifying age on or before the start of the term to access funding that term. For example, a child turning 2 on 3rd April will not be eligible for funding until the Autumn Term beginning in September.

Reconfirming Eligibility Every 3 Months

For all funding based on income (i.e., for ages 9 months, 2 years, and extended hours for 3–4s), parents must reconfirm their eligibility every 3 months using the Childcare Choices portal. Failure to do this can result in the loss of your funded place.

Shine Childcare sends reminders to parents in advance of reconfirmation deadlines and offers support to help you reapply in time.

4. How to Apply for Funded Childcare

The application process for government-funded childcare is fairly straightforward once you know where to start. However, parents often find themselves confused by deadlines, forms, and what information they’ll need to provide. At Shine, we support every family through this process and can even liaise with your local council on your behalf. Here’s a step-by-step breakdown.

Step 1: Decide Which Funding Scheme Applies to You

Start by identifying which funding scheme(s) your child is eligible for, based on their age and your household circumstances. For example:

Is your child 2, 3, or 4 years old?
Will your child be 9 months or older from September 2024?
Are you and your partner working a combined minimum of 16 hours per week each, and earning less than £100,000 per year?

Use the information from earlier in this guide to clarify eligibility before proceeding. If you’re still unsure, Shine nursery managers are happy to help assess your circumstances.

Step 2: Create a Government Childcare Account

To apply for any income-based childcare funding, you’ll need to visit the official Childcare Choices website (https://www.childcarechoices.gov.uk/). This site is run by HMRC and handles applications for:

15 or 30 funded hours for 2-year-olds and 9-month-olds
15 or 30 funded hours for 3–4 year olds
Tax-Free Childcare (a separate benefit)

You’ll need to sign in with a Government Gateway account. If you don’t have one, you can create it during the application process.

Be prepared to provide:

Your National Insurance number
Income information for both parents
Details about your child, including date of birth
The application typically takes around 20 minutes.

Step 3: Receive Your Code and Share it with Shine

Once your application is approved, you’ll be issued an 11-digit childcare code. This code is essential—it proves to your chosen nursery that you are eligible for the government-funded hours.

You’ll need to give this code to your Shine nursery manager, along with your child’s date of birth and your National Insurance number. We’ll validate the code through the local authority and apply the funded hours to your childcare invoice.

You must do this before the start of term. Each term has a cut-off date for code submission, so it’s best to apply early. Shine can guide you through these timelines.

Step 4: Reconfirm Your Details Every Three Months

To maintain eligibility for income-based childcare schemes, you’ll need to log into your Childcare Choices account every 3 months and reconfirm that your circumstances haven’t changed.

This is a simple process—but many parents forget and lose access to their funded hours. Shine sends reminders to all families as your reconfirmation date approaches.

What if I Miss the Deadline?

If you miss a funding deadline, your child may have to wait until the next term to access their entitlement. This could mean paying full fees in the meantime. That’s why we advise families to:

Apply well in advance (6–8 weeks before term start)
Keep track of reconfirmation emails from HMRC
Ask your nursery for help with paperwork if you’re unsure
Paperwork and Local Authority Contact

While most applications are handled online, some special cases (e.g. disadvantaged 2-year-olds) may require paper forms or contact with your local council. Shine Childcare staff are familiar with these processes and can guide you through every step. We’ll even contact your local authority on your behalf if needed.

Paperwork and Local Authority Contact

5. What’s Coming in September 2025?

The government’s expansion of funded childcare in September 2025 marks the most significant shift in early years policy in over a decade. From this date, all eligible working families in England with children aged 9 months to school age will be able to access up to 30 funded hours of childcare per week, during term time.

What Is Changing?

Currently, only 3- and 4-year-olds (and some 2-year-olds) are eligible for 30 hours of funding. But from September 2025, this entitlement will be rolled out in full to include:

Children aged 9 to 23 months (for families meeting the work and income criteria)
Children aged 2 years (under the same extended rules)
Children aged 3–4 years (continuing the current scheme)

This means the entire pre-school age range will be covered, offering meaningful support to working parents from the end of maternity or shared parental leave through to school entry.

Will It Be 30 Hours Immediately?

Yes—if you are eligible. The 30 hours apply during term time only (38 weeks), which totals 1,140 funded hours per year. As with the existing model, most full-year nurseries like Shine will allow you to stretch this funding, reducing the number of hours per week but extending the support across the year.

30 term-time hours ≈ 22 hours/week over 51 weeks

Who Qualifies?

The eligibility rules are expected to remain the same as for the current extended hours:

Both parents (or a single parent in a single-parent home) must be working and each earning at least £8,670 annually
Neither parent may earn more than £100,000 annually
Self-employed and part-time workers are eligible, so long as earnings meet the threshold

Parents will still need to apply through Childcare Choices (https://www.childcarechoices.gov.uk/), receive their eligibility code, and reconfirm every 3 months.

Key Things Still to Be Confirmed

As of June 2025, several key details are still pending full government confirmation, including:

The hourly funding rates that nurseries will receive for each age group
Whether extra support will be offered for children with SEND (special educational needs or disabilities)
How local authorities will handle increased demand for places

Shine Childcare is monitoring these developments closely and will update our information—and this guide—as soon as confirmed guidance is published.

How Shine Is Preparing

We are already planning ahead to meet the expected demand in Leeds, Huddersfield, Halifax and Oldham. This includes:

Recruiting and training more qualified staff
Expanding our capacity where needed
Supporting families with early applications and transition planning

We understand that this reform could transform how your family approaches childcare and work. Our nursery managers are here to help you navigate the change smoothly.

6. Why Choose Shine Childcare?

Choosing the right nursery for your child is about more than just funded hours—it’s about trust, quality, and finding a team who cares as much about your child’s development as you do. At Shine Childcare, we’re proud to deliver not only exceptional early years education but also clear, ongoing support for families navigating the complexities of funding.

Here’s why families across Leeds, Halifax, Huddersfield and Oldham trust Shine:

Exceptional Staff and Environments

Over 90% of our nursery staff are fully qualified in early years education. We believe in continuous professional development, and our nursery managers spend up to 75% of their time mentoring staff, overseeing room quality, and helping to implement best practice.

Our environments are warm, welcoming and thoughtfully designed. Whether your child is a curious 9-month-old or a confident 4-year-old, they’ll find stimulating, safe and caring spaces to explore and grow.

Clear Guidance on Funding

From your very first enquiry, we’ll help you understand what your child is eligible for. We offer one-to-one support with the application process and are happy to speak directly with local authorities to assist on your behalf. Whether you’re applying for a 2-year-old funded place, stretching hours over the year, or trying to reconcile Tax-Free Childcare with your funding, we can guide you.

Flexible Sessions to Match Your Life

We understand that every family has different working patterns, budgets and routines. That’s why we offer flexible session structures—including stretched funding options—to make your entitlement go further.

We also clearly outline any additional charges upfront. No surprises, no confusion—just a straightforward partnership.

A Community-Centred Approach

Shine Childcare is more than a group of nurseries—it’s a community. Each setting reflects its local area and builds strong, consistent relationships with families. Many of our children stay with us from infancy through to school age, and we’re proud to play a role in each child’s journey.

Conclusion: Get the Help You Deserve

Understanding government childcare funding can feel overwhelming. But you’re not alone. At Shine, we’re here to guide you every step of the way—from working out your eligibility to helping you complete forms, confirm your code, and make the most of every funded hour.

Whether you’re looking for a nursery in Leeds, Halifax, Huddersfield or Oldham, we’re ready to support you with clear information, friendly guidance and outstanding early years care.

Get in touch today to discuss a funded place and let’s build something special for your child together.