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Funded hours for eligible two year olds

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Help paying for your childcare

If you are a working parent with a two year old the Best Start in Life website offers a comparison guide for ways to reduce childcare costs. For further information see the entitlements for working parents page.

Introduction

Some two year olds are entitled to funded early learning and childcare. The eligibility starts the school term after the child’s second birthday. Although not all two year olds are entitled to a funded place, all children become eligible for funded childcare and early learning places from the school term after their third birthday. Funded early learning and childcare for 3 and 4 year olds.

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15 funded hours of early learning for eligible two year olds

Children in families with a low income or in receipt of certain benefits are entitled to 15 funded hours of childcare or early years education

  • The funded hours are up to 570 hours a year.
  • This is 15 hours over 38 weeks or fewer hours per week for more weeks in the year.
  • This can be taken at registered settings or childcare providers or cross more than one setting.
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Eligibility

Eligibility criteria for two years old funded early learning and childcare 
Children born in the period

Become entitled for funding at the start of the funding period or following

Funding period
1 January - 31 March 1 April Summer
1 April - 31 August 1 September Autumn
1 September - 31 December 1 January Spring

Your two year old can get funded early learning and childcare if you live in England and get any of the following benefits:

  • Income Support
  • Income based Job Seekers Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Universal Credit, and your household income is £15,400 a year or less after tax, not including benefit payments

Two year olds can also get funded early learning and childcare if they:

  • are looked after by a local authority
  • have an education, health and care (EHC) plan
  • get Disability Living Allowance
  • have left care under an adoption order, special guardianship or a child arrangement order

If you have received a letter, you will need to complete the online application form to check your eligibility. The letter is not proof of entitlement as your circumstances can change. You do not need the letter to make an application - anyone meeting eligibility can apply.

Apply for funded childcare for two year olds

Click here to apply for funded childcare for two year olds

If you qualify, you will receive an authorisation code, which you need to give to the early learning and childcare provider of your choice and discuss taking up a place with them. The authorisation code can be used at more than one provider and is valid until the funding period following your child's third birthday.

If you are eligible, your child is entitled to a maximum of 570 funded hours in the 12 month period. Please refer to the table above for the eligible dates of birth.

Information about three and four year old funding

No recourse to public funds (NRPF) early learning for two year olds

If you meet any of the listed criteria, your child will be eligible for a maximum of 570 hours of Early Learning and Childcare funding in a 12-month period.

  • A Zambrano or Chen carer
  • Have the right to remain in the UK under Article 8 of the European Convention of Human Rights (ECHR)
  • Receiving support under Section 4 of the Immigration and Asylum Act 1999
  • Receiving support under Section 17 of the Children Act 1989 AND are subject to a NRPF condition
  • Families holding a BN(O) Passport
  • Spousal, Work or Student visa holders
  • Those with no immigration status.

To qualify any family must not have an income greater than the thresholds below.

  • £26,500 for families with one child
  • £30,600 for families with two or more children

In addition, you cannot have more than £16,000 in savings or investments.

To apply, please email ewb.fsm@cambridgeshire.gov.uk

More information about the two-year-old entitlement for parents with NRPF on the NRPF Network website.

Frequently asked questions

The hours and sessions which are available for funded childcare will depend on the individual childcare setting and will need to be agreed in advance. There should not be any additional costs attached to claiming the funded hours, such as top up fees or uniform charges.

Children benefit from early learning, we know this from research. Good quality early learning:

  • helps your child to be happy, confident, sociable and curious
  • gives opportunities to be active and learn through fun and play, indoors and outdoors
  • offers many activities including creative and messy play
  • helps them to become effective learners and ready for school
  • has a long term impact on their development

You can find a list of childcare providers near where you live who have been approved to offer funded places for 2 year olds on the Childcare Directory. You can then contact the childcare provider directly to see if they have any vacancies. It is best to do this as soon as possible, because some childcare settings have long waiting lists. Visit the Childcare Information page for more information.

  • If your child already attends childcare, please ask your childcare provider if they offer funded places for 2 year olds.
  • If you need further support you can visit your nearest Child and Family Centre.

If Peterborough City Council is your local authority, you can apply for funded childcare on their website.

Childcare costs are included in the calculations made by HMRC to ensure that you receive the right amount of credit that you are entitled to. If you already pay for childcare and claim child tax credit to cover the cost, you must notify HMRC as soon as possible if taking up a funded place reduces the cost of your childcare by £10 or more a week.

You do not need to notify HMRC if your cost does not change, for example if you use the funded childcare to increase the number of hours your child attends. You will always be better off taking up a funded place as tax credits only contribute to a part of the full cost of childcare and not all of it.

There is HMRC guidance for parents or carers who may be having difficulty claiming childcare support through tax credits or childcare vouchers if their childcare provider is a school.

We have compiled answers to the most common questions we are asked about childcare funding.

Contact the Early Years Funding Team

Early Years Funding Team
PAP1203
PO Box 761
Huntingdon
PE29 9QR

Email: Funded.twos@cambridgeshire.gov.uk

Early years funding is a national scheme administered by local authorities in their areas. To find out more about the legal framework and principles go to Early Years Funding Code of Practice for Local Authorities.