Early Education Hours and Financial Support for Working Parents

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We are excited to share some important updates regarding the expansion of childcare support, as you may have already seen in recent media coverage. Starting April 2024, this support will be rolled out in phases, culminating in September 2025, where most working families with children under 5 will be eligible for up to 30 hours of childcare support per week. Here's what you need to know:

Phased Introduction of Expanded Childcare Support in the UK:

  • From April 2024: Working parents of 2-year-olds will gain access to 15 hours of childcare support per week.

  • From September 2024: This 15-hour support extends to working parents of children aged 9 months to 3 years.

  • By September 2025: Eligible working parents of children under 5 will receive up to 30 hours of childcare per week.

These hours can be utilized over 38 weeks of the year (aligning with school terms) or spread throughout the year (up to 52 weeks), depending on your childcare provider's offerings.

Eligibility Criteria:

To qualify as an 'Eligible Working Parent':

Each parent must be employed, earning at least the equivalent of 16 hours a week at the national minimum/living wage (over £8,600 annually).

However, parents earning over £100,000 per year are not eligible for the Early Years Hours until the term after their child turns three.

Alternative Support for High-Income Earners:

For parents earning more than £100K annually, many employers now participate in the Workplace Nursery Scheme, which offers substantial support with childcare costs. Further details are available at the end of this letter.

Application Process for Two-Year-Old Funding:

Eligible parents can apply for the 15-hour childcare code for their two-year-old starting from 2 January 2024, with applications closing on 31 March 2024. The best time to apply is between mid-January and the end of February, allowing ample time for any additional information requests. How to apply please go to www.childcarechoices.gov.uk.

Early Year Hours Allocation:

These hours become available the term after your child reaches the eligible age. For example, if your child turns two on 1st April, you become eligible for Early Year Funding hours from 1st September 2024. Please note, our nursery, which operates beyond the standard 38 weeks, will proportionally stretch these hours across our full operating weeks (50.14 weeks per year).

Tax-Free Childcare Option:

In addition to the Early Year Hours, Eligible Working Parents can benefit from Tax-Free Childcare for various childcare services. This scheme offers up to £2,000 per year per child (or £4,000 for children with disabilities) off childcare costs. For every £8 deposited in a Tax-Free Childcare account, the government adds £2, allowing savings of up to £500 every 3 months per child, or £1,000 for children with disabilities. Families yet to sign up can check their eligibility and apply online.

Support for Parents Earning Over £100K:

For those with higher incomes, the Workplace Nursery Scheme provides significant financial assistance for nursery fees. This arrangement involves your employer to set up the scheme with Workplace Nursery. For more details, please visit Workplace Nursery: Savings for Nurseries, Parents, Employers (workplace-nursery.net).

We hope above information is helpful to you. We encourage you to visit the Childcarechoices.gov.uk website for more information about your eligibility and support options. Our management team is also available to answer any queries and assist you in navigating these new childcare support measures.