Parents can now get 15 hours of childcare from age 2 in England – are you eligible?

A major shake-up happening today means that working parents in England are now entitled to 15 hours of free childcare per week for their two-year-olds.

The government has announced the plans in the 2023 Budget in a bid to tackle crippling childcare costs.

The extra help for working parents will be introduced in phases. This month, working parents of two-year-olds will get 15 hours of free childcare, before it is rolled out to all children under 5 from 2025.

What are the new rules?

Some free childcare hours were already available for working parents. Eligible working parents of 3- and 4-year-olds already had access to 30 hours of childcare support.

Starting this month, eligible working parents of 2-year-olds can now access 15 hours of free childcare.

From May 12, eligible parents whose children are between 9 and 23 months as of August 31 can apply for 15 hours of childcare starting in September 2024.

Then eligible parents with a child aged 9 months or older will receive 15 hours of free childcare from September 2024.

This will increase to 30 hours from September 2025 for eligible working parents who have a child aged 9 months up to compulsory school age.

The Government announced the plans last year and hopes it will save working parents an average of £3,450 a year, as the cost of childcare has soared in recent years.

Nearly a third of adults with a child under the age of five have reduced their working hours or stopped working due to the costs associated with childcare, according to research by Phoenix Group.

For women, this figure is much higher, rising to 43 percent, compared to 15 percent for men.

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What it will cover

If eligible, working parents receive 15 hours of funded childcare per week for 38 weeks per year.

However, some providers extend these hours over 52 weeks if you use fewer hours per week.

You can use these financed hours with any childcare provider that has joined the scheme, for example a daycare center, school or kindergarten, a childminder or a Sure Start Children’s Centre.

But not everywhere are offering these new funded hours, so make sure you check with your childcare provider.

The Early Years Alliance (EYA), which represents childcare providers, says services will struggle and costs may have to rise.

Additionally, this rate does not always cover the full cost of childcare, so some providers may charge extra for meals or diapers.

Are you entitled to free childcare?

You are eligible if your child is 2 years old and earns at least £8,670 per year and less than £100,000 per year, after some tax credits and deductions.

If you are a couple, you both have to work and earn between these amounts.

If your child does not normally live with you, you cannot use the free hours.

You may still be eligible if you are not currently working, but your partner is, if you are on carer’s leave or receiving certain benefits, including disability benefits or severe disability benefits.

How to apply

Parents must register before the start of the school year if their child is eligible. This means that the deadline for free hours from April has now passed.

Working parents whose children will be 2 years or older on August 31 will have to wait until September and registrations open on May 12.

You can submit an application online on the government website. You will need your citizen service number, or a unique tax number if you are self-employed, and the date on which you started or will start working.

You will also need to provide details of any government support or benefits you receive, and the reference number of your child’s birth certificate.

You may find out immediately if you qualify, but this could take up to seven days. After approval, you will receive a code that you can pass on to your childcare organization.