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Understanding childcare funding can feel confusing, especially when you’re preparing to return to work and trying to make sense of terms like funded hours, eligibility codes, working parent entitlement and term dates. Many families tell us they feel unsure where to begin.

At SM����,our team is here to make the process clearer. With the right guidance and a little forward planning, you can feel confident about what you’re entitled to and how to access it.

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When does childcare funding begin?

A common misunderstanding is that funding starts the moment your child reaches 9 months. In reality, working families can access 30 hours of funded childcare from the term after their child turns 9 months old.

Funding follows the school term calendar

- Spring Term starts in January

- Summer Term starts in April

- Autumn Term starts in September

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This means your child’s birth date determines when funding becomes available.

Examples:

- A baby turning 9 months in January becomes eligible from April.

- A baby turning 9 months in May becomes eligible from September.

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Knowing these cut‑off dates early helps families plan ahead and avoid unexpected childcare costs.

Please note if you would like receive government funding from 1st September 2026 you will need to have applied by 31st August 2026. To find out more please visit

The return to work rule many parents miss

The government’s definition of “back at work” is broader than many parents realise. You may be considered back at work even if you haven’t physically returned to your workplace yet.

You may already meet the criteria if you are, using paid annual leave before your return date

This matters because waiting until your first day back could mean missing a term deadline and delaying your funded hours.

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Who qualified for working parent funding?

Most families qualify if:

- Both parents are employed or self‑employed

- Each earns at least the equivalent of 16 hours per week at minimum wage

- Each earns under £100,000 per year

Families who meet these criteria may also be eligible for Tax‑Free Childcare, which can reduce childcare costs further.

If one parent earns over £100,000, the working parent entitlement isn’t available, but all children still receive 15 universal funded hours from age three, regardless of income.

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Funding options for families not currently working

If you’re not working right now, you may still qualify for other types of funded childcare:

Two‑Year‑Old Funding

Some families receiving certain benefits (such as Universal Credit or Income Support) may be eligible for funded childcare for their two‑year‑old.

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Universal Funding

All children in England receive 15 hours of funded childcare from age three, regardless of employment status.

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Additional funding support you may be entitled to

Depending on your circumstances and local authority, your child may benefit from additional early years funding streams.

- Early Years Pupil Premium (EYPP) supports eligible 3 and 4 year olds

- Disability Access Fund (DAF) for children receiving Disability Living Allowance

- Inclusion Funding for children with SEND

These do not reduce your childcare fees directly, but they help nurseries provide additional resources and tailored support.

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How SM���� helps families navigate funding

Childcare funding can feel complicated, but you don’t have to figure it out alone. SM����’s funding specialists support families throughout the process, helping you understand your options and complete applications on time.

We also offer:

- Stretched funding, spreading funded hours across the year

- Flexible sessions designed around family routines

- A simple digital funding process through our partnership with Funding Loop

Our goal is to make funding feel manageable, predictable and stress‑free.

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We're here to support you

Whether you’re planning your return to work or exploring childcare options, our team is ready to help you understand what your family may be entitled to.

Please note: while these guidelines apply in most cases, there may be variations depending on your Local Education Authority (LEA).

Visit our Funding Hub for more guidance�� or Download our

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Funding FAQs

When does childcare funding start for babies?

Childcare funding for working parents begins from the term after your child turns 9 months old. Term dates (January, April, September) determine when funding becomes available.

How do I apply for funded childcare?

You apply through the government’s . You’ll receive an eligibility code that your nursery will need before the term deadline.

What is an eligibility code for childcare?

An eligibility code confirms your entitlement to funded childcare. You must provide it to your nursery before the cut‑off date for funding to begin the next term.

Do I qualify for 30 hours funded childcare?

Most working families qualify if both parents earn the equivalent of 16 hours at minimum wage and under £100,000 per year.

Can I get childcare funding if I’m not working?

Yes — you may qualify for two‑year‑old funding or universal 15 hours from age three.

What is stretched funding?

Stretched funding spreads your funded hours across the full year instead of term‑time only, helping create more consistent monthly childcare costs.

What is Tax‑Free Childcare?

gives eligible families up to £2,000 per year per child towards childcare costs. It can be used alongside funded hours.

What happens if I miss the funding deadline?

If you miss the term deadline, funded childcare will start the following term, which may mean paying full fees temporarily.

What is Early Years Pupil Premium?

provides additional funding to nurseries to support eligible 3‑ and 4‑year‑olds with learning and development.

Does my nursery help with funding applications?

Yes —SM����’s funding specialists guide families through the process, explain deadlines and help ensure applications are completed correctly.