In March 2023, the government introduced plans to broaden subsidised childcare hours, including for younger children. You may be eligible for 15 hours of funding for your 2-year-old if you work at least 16 hours per week at the national living wage or minimum wage, provided your annual income does not exceed £100,000.

For couples, these conditions must be met by each partner individually. If one partner is not working or if either partner’s income exceeds £100,000, you will not be eligible for the funding.

For additional information regarding the latest funding initiatives, sign up to the official government Childcare Choices website.

Tax-Free Childcare is a UK government initiative designed to help working parents with childcare costs.

For every 80p you or someone else pays, the government adds an extra 20p. This contribution aligns with the standard 20% tax rate, which is how the scheme got its name.

In England, two government-funded programs offer 15 hours of free early education and childcare for young children:

• 15 hours of funded childcare specifically for eligible 2-year-olds.
• 15 hours of funded childcare available to all 3 and 4-year-olds.

Eligible families also have the option to receive 30 hours of funded childcare.

While all 3 and 4-year-olds in England currently receive 15 hours of government-funded early education per week, those with parents living and working in England may qualify for an extended benefit of 30 hours of funded childcare, totalling up to 1,140 hours per year.