Funded childcare for two year olds

Some two year olds are entitled to 15 hours of Funded Entitlement (FE) per week over 38 weeks per year. This is known as TWO YEAR OLD FUNDING.

How can the funding be used?

15 hours of childcare or early years education for 38 weeks
Some providers will allow you to stretch the hours over 52 weeks, using fewer hours per week

Please speak to the childcare provider (playgroup, nursery or childminder) to discuss whether they offer 15 hours term time only (38 weeks) or a stretched offer (less hours the week but stretched across the year).

Where can I use my funded hours?

Your funded hours can be used at either a:

playgroup,
day nursery or
with a childminder

Benefits of using funded childcare for two year olds

Quality early years care can help your child:

Learn
Play together with friends
Experience new activities
Messy play without you having to clear up at home!
Helps them become ready for school

It can also help you:

Have more time
Take up a college course
Go back to work
Get ideas of how to help your child play and learn

Facts about funded childcare for 2 year olds

Once you have been approved as eligible for funded childcare for your two year old, it will not be taken away. Even if your household income changes and you now earn over the threshold
You don't have to use the full 15 hours a week. In fact you can use as little as 2.5 hours a week
You don't have to receive benefits to be eligible
Can be used at childminders, pre school playgroups and nurseries

Funded childcare and tax credits

If you already access childcare and want to start using the funded hours

HMRC includes the costs of childcare in their calculations. If you already pay for childcare and you claim child tax credit to cover the costs of the childcare you need to notify HMRC as soon as possible if by using the funded childcare for your 2 year old reduces the cost of your childcare bill by £10 or more a week.

If you already access childcare and want to increase the number of hours your child attends by using the funded hours

If you are already using childcare, and wish to use the funded hours to increase the number of childcare hours your child attends and there is no change to the amount you are paying, you do not need to contact HMRC. Tax credits only contribute to some of the cost of childcare and not all of it. In this situation, where you wish to increase the amount of hours your child attends childcare, you will be better off taking up the funded place as well as receiving child tax credit.

Further guidance and information is available in HMRC's guidance for parents:

When can my child start their funded place?

The table shows when eligible children can start their funded place (this is the term after their 2nd birthday):

A child who is 2 in:	Can start their funded place from:
January February or March	The start of the summer term
April, May, June, July or August	The start of the autumn term
September, October, November or December	The start of the spring term

Who is the 2 year old funding for and how do I apply?

View and complete the online form to find out if you are eligible or to apply.

If you have received a letter confirming your two year old is eligible to receive funded childcare, show your letter to the early years childcare provider you would like your child to attend.

If you don't know what childcare is available in your area contact York Family Information Service for a tailored list of Ofsted Registered childcare providers eligible to offer funded places for two year olds. The childcare providers must be Ofsted registered as Good or Outstanding to offer a funded place.

If you need help completing the online form or not sure if you should apply, please contact York Family Information Service 01904 554444 / fis@york.gov.uk

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