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Childcare Funding Made Simpler: What families wish they’d known sooner
If there’s one thing we hear from families time and time again, it’s this:
“I wish I’d known that sooner.”
Childcare funding can make a huge difference to your nursery fees, but understanding exactly when funding starts, how it’s claimed and what you need to do can sometimes feel overwhelming.
At Kindred, we believe the process should be as simple, transparent and stress-free as possible. Every family’s circumstances are different, but there are a few areas that regularly cause confusion when families first start looking into their options.
So, here are the things we think every family should know about childcare funding, from when your entitlement begins and how your code works, right through to Tax-Free Childcare and what actually happens after you send your details to us.
Topics:
How do I know what childcare funding I am entitled to?
How and when do I apply for childcare funding?
Who decides if I am eligible for funding?
Why don’t I see exactly 15 or 30 funded hours on my invoice each week?
What is Tax-Free Childcare?
What are consumables?
How do I know what childcare funding I am entitled to?
The funding available to your family will depend on your individual circumstances and whether you meet the government's childcare funding eligibility requirements. Funding also depends on the age of your child.
There are three main types of government childcare funding available:
- 30 Hours Funded Childcare for eligible working families, the term after your child turns 9-months old.
- 15 Hours Funded Childcare for 2-Year-Olds for families who meet specific eligibility criteria that may not qualify for the 30 hours working parent entitlement.
- 15 Hours Universal Funding which is available to all families from the term after your child's 3rd birthday.
Eligibility can vary depending on your family's circumstances, so it's always worth checking what support you may be entitled to. You can check the full eligibility details on GOV.UK here.
Eligibility for working families
For the 30 hours working-family entitlement, the general eligibility information is that:
- Your child is aged 9 months to 4 years, following the September 2025 rollout
- Each parent earns at least the equivalent of 16 hours at National Minimum Wage
- Each parent earns less than £100,000 per year
How and when do I apply for childcare funding?
Applications for funded childcare are made through the Government’s website here.
You can also visit Best Start in Life and start checking your options here.
Funding term dates
If you're eligible for childcare funding, it's important to apply for your funding code before the term you intend to start using your funded hours. Government childcare funding works around fixed eligibility dates and termly funding periods, so applying in advance helps ensure your funding is in place when you need it.
For the 15- and 30-hours childcare entitlements, those funding periods are:
- 1 January to 31 March - Spring term
- 1 April to 31 August - Summer term
- 1 September to 31 December - Autumn term
If your child becomes eligible part-way through a term, funding will usually begin from the next funding period rather than immediately.
Renewing Your Childcare Funding Code
Getting your code is only the first part of the process. Once it has been issued, you also need to reconfirm your details when required. You can sign in to your childcare account here to manage this.
Your childcare provider may be able to continue claiming funding for a short period while your funding code is within its grace period. Grace periods are designed to give families a little extra time if their eligibility changes, helping to avoid a sudden interruption to childcare funding. It's important to remember, though, that all childcare funding codes need to be renewed during the renewal window to keep funding in place.
Wherever possible, we recommend renewing your eligibility within your renewal window rather than relying on a grace period, particularly if your circumstances or childcare arrangements change. If you're ever unsure, it's always worth checking your eligibility status early.
Funding deadlines to keep in mind
The final dates to apply for or renew your funding are:
- 31 December for the Spring term
- 31 March for the Summer term
- 31 August for the Autumn term
We always recommend checking your childcare funding entitlement and any renewal deadlines as early as possible. If you're returning to work after maternity leave, planning to start childcare mid-term, or your circumstances have changed, checking ahead can help you avoid delays and ensure your funding is ready when you need it. Ideally, allow at least one to two months wherever possible. You can find more information here.
Who decides if I am eligible for funding?
One thing that can be useful to understand is that your nursery doesn’t decide whether you qualify for funded childcare. Different organisations have different roles in the process:
- HMRC deals with childcare entitlement codes for working families.
- The Department for Education sets the policy framework.
- Local authorities are responsible for delivery.
- Childcare providers collect the required information from families and submit funding claims on their behalf.
Once you have applied for your childcare funding or renewed your code, your childcare provider will explain their process for collecting the information they need. After receiving the required details and documentation, they can check your eligibility, highlight any issues that may affect your funding application and submit the relevant funding claim to the local authority. Once the claim has been submitted, the local authority will carry out the necessary checks. If they require any further documentation or have any queries, they will usually contact the childcare provider directly.
Why don’t I see exactly 15 or 30 funded hours on my invoice each week?
A question we hear a lot from our full year families is:
“If I’m entitled to 15 or 30 hours, why doesn’t that show exactly on my invoice?”
The reason is that Government funding covers 38 weeks of the year. It isn’t a 15- or 30-hour allowance for every week of the year.
So, across the full entitlement:
- 15 hours × 38 weeks = 570 funded hours per year
- 30 hours × 38 weeks = 1,140 funded hours per year
How Kindred stretches funding across the year
At Kindred, we know that having more consistent nursery fees can make family budgeting much easier. That's why, if you're on a full-year plan, we spread your funded hours across the year in line with Government guidance, helping you benefit from your funding more consistently throughout the year.
For example, if a setting is open for 51 weeks per year and your entitlement is 30 funded hours, we first calculate the annual entitlement, then divide it by the weeks the setting is open:
(30 funded hours × 38 weeks) ÷ 51 weeks
That gives us the weekly funded entitlement that can be applied throughout the year.
In practice, this means your funded hours are spread evenly across the full year that your child is in the setting with us. The number of funded hours shown each week will be lower than 30, allowing your monthly fees to be consistent and predictable.
What is Tax-Free Childcare?
Tax-Free Childcare is another way to reduce your nursery fees.
Many families use Tax-Free Childcare alongside their funded hours. You can find out about Tax-Free Childcare and apply here.
This can help with your monthly fees:
- You open an online childcare account
- For every £8 you pay into it, the Government adds £2
- You can receive up to £2,000 per child per year, or £4,000 for a disabled child
It functions like a second bank account specifically for your childcare costs. You put money into your Tax-Free Childcare account, link the account to your nursery setting and then transfer the payment from that account to the setting. Once everything is linked, the process is fairly straightforward.
The money can then be used towards your nursery fees. Many families find that using Tax-Free Childcare alongside their funded hours helps make their overall childcare costs more manageable.
Tax-Free Childcare code
Your Tax-Free Childcare code will usually begin with the first letter of your child’s first name, followed by three letters from your child’s last name and then a unique series of numbers. While both Tax-Free Childcare and funded childcare can help reduce the cost of your nursery fees, they are separate Government schemes. Many families are surprised to learn that Tax-Free Childcare and childcare funding use different codes, so it's worth checking that you're using the correct code when submitting childcare funding information to your provider.
What are consumables?
Government funding is intended to deliver free, high-quality childcare. It covers your child’s funded childcare hours, but does not cover the cost of meals, drinks, snacks, nappies where applicable, or other consumables used during funded sessions. Consumables are charged to cover the resources your child uses while accessing their funded hours. Consumables are separate from your government-funded entitlement; so, we always recommend speaking to your Nursery Manager if you have any questions about what is included or how the charge applies.
Read Our Consumables Guidelines
We’re here to help
Childcare funding involves several organisations, including HMRC, the Department for Education, local authorities and nursery providers, so it’s completely normal for the process to feel complicated when you first come across it. At Kindred, our aim is to make that process feel simpler.
Our nursery teams are always happy to assist as much as we can, whether that means helping you understand what information we need, explaining where you are in the process or pointing you towards the right Government service.
Whether you’re expecting a baby, returning to work or already using funded childcare, we’re here to help make things as straightforward as possible, so you can spend less time worrying about the admin and more time enjoying your child’s early years.