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Everything you need to know about funded childcare as a provider in England
In England, eligible children have access to 30 hours per week in term time or 1140 hours per year for three and four-year-olds of working parents.
- From April 2024, working parents of two-year-olds were able to access 15 hours of funded childcare
- From September 2024, 15 hours of funded childcare were extended to all children from the age of nine months. The Department for Education states “We recommend that everyone who is seeking a childcare place for September 2024 and has not yet done so, speaks to their chosen provider and applies for a code as soon as possible. It may be difficult at this stage to secure your first-place provider. If you are struggling to find a place you should contact your local authority, who will be able to help source a local provider offering the entitlements.” See Government Childcare Choices support here
- From September 2025, working parents of children under the age of five will be entitled to 30 hours funded childcare per week.
Template letters for parents and MPs about rising employment costs (from April 2025)
Our members have asked us to provide a template letter they can send to their local MPs and to parents to explain about the challenges that early years providers are facing, especially regarding the higher employment costs which will come from April 2025 as a result of the budget. Many of you are having to put up your fees as a result and need to explain why.
NDNA has put together a template letter – which you can adapt and update depending on your own circumstances – for you to send to parents. You can use the letter in full or choose sections that back up your own points. We have included national background information and statistics that should support your main arguments.
We have also written a template letter to send to your local MP(s). It would be most effective if you add in local information, how this impacts on your own setting.
Under‑threes funding guide for nurseries
These resources support your nursery or early years setting when working with families of under‑threes. They help you understand the processes around temporary codes, reconfirmation dates, and administering funded places.
Under‑threes funding guide for nurseries
Supports providers with:
- What to do when a parent presents a temporary code
- How to reserve a place while parents await confirmation
- How to process temporary codes
- When and how to amend invoices if needed
- What to do if parents fall out of eligibility.
Use this guide to:
- Train your admin and admissions team
- Standardise your response to parent queries
- Ensure compliance with funding rules.
Guides you can share with parents to secure funded hours
These documents help parents understand what they need to do to secure funded hours. You can give them directly to families, link to them in emails, or use them to guide conversations.
For parents already claiming tax‑free childcare
What this guide helps parents understand:
- When and how to reconfirm their TFC eligibility
- How temporary codes work
- What evidence they can show while waiting for their formal code
- What steps to take before September.
When providers should give this to parents:
- Parents are already in the TFC system
- They are unsure about reconfirmation dates
- They ask what documentation they need to provide to you.
For parents not yet claiming tax‑free childcare
What this guide helps parents understand:
- How to check their eligibility for the 15 hours funded childcare entitlement
- How to apply for the entitlement online
- What information they need to complete their application, including national insurance number and the child’s details
- How long approval decisions can take
- Why meeting application deadlines is essential for securing a funded place from 1 September.
When providers should give this to parents:
- Families new to the childcare funding system
- Parents who have not yet applied for tax‑free childcare
- Anyone needing step‑by‑step help with the application process.
How local authority underspends affect funded childcare
Local authorities are continuing to use £millions of early years funding to offset other deficits or put in reserves, according to an investigation by National Day Nurseries Association (NDNA). Funding underspends in local authorities directly impact the rates providers receive for delivering funded hours, including the 30 hours entitlement.
Early years funding reporting