Free Childcare Hours
Official Definition
According to Gov.uk, eligible families can get government-funded childcare hours for children from 9 months to school age. The amount varies by child's age and your working status.
What It Is (Plain English)
Free childcare hours means the government pays your nursery or childminder directly for a set number of hours per week during term time (38 weeks a year). You can choose to "stretch" this across the full year (fewer hours per week but year-round).
The hours you get depend on your child's age and whether both parents are working. There's also an income limit - neither parent can earn over £100,000, another harsh cliff edge like Tax-Free Childcare.
- 9 months to 2 years: 15 hours/week (working parents only, from Sept 2024)
- 2-3 years: 15 hours/week (working parents only, from April 2024)
- 3-4 years (all families): 15 hours/week (universal - everyone gets this)
- 3-4 years (working parents): 30 hours/week
- Income limit: Neither parent over £100,000
- Term time: 38 weeks/year (or stretched to 52 weeks at fewer hours/week)
How Many Hours Do I Get?
| Child's Age | Hours (All Families) | Hours (Working Parents) | Conditions |
|---|---|---|---|
| 9 months to 2 years | 0 | 15 hours/week | Both parents working, under £100k each |
| 2-3 years | 0 | 15 hours/week | Both parents working, under £100k each |
| 3-4 years | 15 hours/week | 30 hours/week | Universal 15 hours. Extra 15 if working + under £100k |
| School age (5+) | School hours | School hours | N/A - in compulsory education |
Who Qualifies as "Working Parents"?
To get the extended hours (15 hours for under-3s, or 30 hours for 3-4 year olds), BOTH parents must:
- Earn at least £8,788/year each (roughly 16 hours/week at minimum wage)
- Earn less than £100,000/year each
- Not be receiving Tax Credits or certain benefits
Single Parents
If you're a single parent, only your income is tested - you just need to meet the £8,788 minimum and stay under £100,000.
Self-Employed
You need to reasonably expect to earn at least £8,788 over the next 3 months on average. HMRC uses self-assessment data but won't check immediately when you apply.
On Maternity/Paternity Leave?
You're still eligible if you plan to return to work within 31 days of applying. Your eligibility is based on your normal working pattern, not current maternity pay.
The £100,000 Cliff Edge
If either parent earns £100,000 or more, you lose ALL extended childcare hours. No taper, no gradual reduction - it's an immediate cliff edge. This can cost you thousands per year.
Earning £99,000:
- Take-home after tax/NI: ~£67,500
- Free childcare: 15 hours/week (worth ~£4,000/year)
- Net benefit: £71,500
Earning £101,000 (£2,000 more):
- Take-home after tax/NI: ~£68,000
- Free childcare: 0 hours (over limit)
- Pay for childcare: -£4,000
- Net benefit: £64,000
Result: Earning £2,000 more costs you £7,500!
Term Time vs Stretched Hours
You can take your hours in two ways:
Term Time (38 weeks)
- 15 or 30 hours per week during school terms only
- No funding during school holidays
- Higher hourly coverage when it applies
Stretched (52 weeks)
- Same total hours divided across the full year
- 15 hours becomes ~11 hours/week all year
- 30 hours becomes ~22 hours/week all year
- Better if both parents work year-round
Term time: 30 hours/week for 38 weeks = 1,140 hours/year
Stretched: 1,140 hours ÷ 52 weeks = ~22 hours/week all year
What's Covered and What's Not
Covered by Free Hours:
- Childcare/education during the funded hours
- Snacks and drinks
- Nappies (if needed)
NOT Covered (you may have to pay extra):
- Meals (breakfast, lunch)
- Additional hours beyond your entitlement
- Consumables (sun cream, wipes, etc.)
- Optional extras (trips, special activities)
Nurseries can charge for these extras, but they can't make you pay for them as a condition of taking up your free hours. If a nursery says "you must pay for lunch to access free hours," that's not allowed.
How to Avoid the £100k Cliff
1. Pension Contributions
The £100,000 test uses your adjusted net income (after pension contributions). If you earn £105,000, paying £5,000+ into a pension keeps you eligible.
Salary sacrifice pensions are most effective because they reduce your gross income for eligibility purposes.
2. Charitable Donations
Gift Aid donations reduce adjusted net income, though usually less impactful than pensions.
3. Bonus Timing
If you get a large bonus that would push you over £100k, consider whether you can defer it to the next tax year. Your eligibility is reconfirmed every 3 months, so temporarily going over might only lose you benefits for one quarter.
Reconfirmation Every 3 Months
You must reconfirm your eligibility every 3 months through the Childcare Choices website. HMRC checks:
- You're still working (or expecting to work)
- Your income is still in the eligible range
- Your circumstances haven't changed
If you miss the reconfirmation deadline, you lose your entitlement and have to reapply. This can cause gaps in your childcare funding. Set calendar reminders!
Universal 15 Hours (3-4 Year Olds)
All 3-4 year olds in England get 15 hours/week regardless of parents' income or working status. This is called the "universal entitlement" and has been around since 2010.
If both parents work and earn under £100k, you get an additional 15 hours (total 30 hours). You don't need to apply separately - the same application covers both.
Common Questions (FAQ)
Can I use free hours at any nursery?
Only at Ofsted-registered providers (in England) who have signed up to offer the funded places. Most nurseries, preschools, and childminders participate, but some private nurseries don't. Ask your provider.
Do I get free hours and Tax-Free Childcare?
Yes! They work together. Use your free hours, then pay for additional hours/wraparound care using Tax-Free Childcare (which gives you a 25% top-up).
What if one parent doesn't work?
You only get the universal 15 hours for 3-4 year olds. The extended hours (15 for under-3s, or 30 for 3-4s) require both parents to be working.
Can my child start free hours mid-year?
Funded hours start at specific points in the year: September, January, or April following your child's eligible birthday. There can be a wait of up to 3 months after they turn eligible age.
Is the £100k limit combined income or each?
Each parent individually. If you earn £90k and your partner earns £90k (£180k combined), you're eligible. But if either of you earns £100k+, you're out.
What happens when my child turns 5?
They start school! Free childcare hours end, but they'll be in compulsory education (which is also free). You might need wraparound care (breakfast club, after-school club) which isn't funded.
Can I split hours between providers?
Yes - you can use different providers (e.g., nursery 3 days, childminder 2 days) as long as both are registered and you don't exceed your total entitlement.
When Did These Hours Expand?
The government expanded childcare entitlements in 2024:
- April 2024: 15 hours for working parents of 2-year-olds started
- September 2024: 15 hours for working parents of 9-month to 2-year-olds started
- Before 2024: Only 3-4 year olds got extended hours
This is a major expansion that makes childcare much more affordable for working families, but the £100k cliff edge creates a trap for higher earners.
How the Calculator Helps
Our calculator identifies when your income approaches the £100,000 threshold and shows you:
- Whether you're at risk of losing free childcare hours
- The value of the hours you'd lose (based on your child's age)
- How much pension contribution would preserve eligibility
- The optimal strategy when earnings are close to £100k