Funding Options

Spring Budget 2023:

The Government has announced they are helping parents with childcare so they can return to work more easily via a range of new measures.

Increasing childcare support:

Working parents in England will be able to access 30 hours of subsidised childcare per week, for 38 weeks of the year, from when their child is 9 months old to when they start school.

This will be rolled out in stages:

  • From April 2024, all working parents of 2-year-olds can access 15 hours per week

  • From September 2024, all working parents of children aged 9 months up to 3 years old can access 15 hours per week

  • From September 2025 all working parents of children aged 9 months up to 3 years old can access 30 hours free childcare per week

Covering the cost of childcare isn’t always easy, especially in the current financial climate. The UK government offers a range of funded childcare schemes to help lighten the financial load. Take a look through all the available options to see what funding can help your family.

Tax Free Childcare:

Tax-Free Childcare is a UK government initiative designed to help working parents with the cost of childcare. For every 80p you (or someone else) pays in, the government will top up an extra 20p. This is equivalent of the tax most people pay - 20% - which is how the scheme got its name.

Tax Free Childcare – Everything you need to Know:

  • Halo Nursery is an Ofsted registered childcare provider, which means we accept Tax-Free payment for childcare.

  • Tax-Free childcare can be a wonderful option for you and your family to save money on childcare costs, however, we understand that the process can feel a little overwhelming.

We’ve put together a step-by-step guide to help get you started. In it, we’ll explain what Tax-Free childcare is, how it works, how to apply, and how to make your childcare payments.

What is Tax Free – How does it Work:

  • Tax-Free Childcare is a government initiative designed to help working parents with the cost of childcare. You open an online account with the government (though the government website, GOV.UK) which you can pay into to cover the cost of childcare with a registered provider. For every 80p you (or someone else) pays in, the government will top up an extra 20p. This is equivalent of the tax most people pay - 20% - which is how the scheme got its name.

  • The government will top up the account with 20% of childcare costs up to a total of £10,000 - the equivalent of up to £2,000 support per child, per year (or £4,000 for disabled children).

How many children does the scheme cover:

The good news is that if you’re eligible to apply, you can apply for all your children at the same time, provided they live with you and are of the right age. If your child is adopted, they are also eligible. Your children need to be under the age of 12, although for children with disabilities the age limit is 17 because their childcare costs tend to remain high for longer.

Before you Apply:

In order to apply, you first have to check that you are eligible. You can do this here. Your eligibility depends on the following factors:

  • If you are working

  • Your income (and your partner’s income, if applicable)

  • Your child’s age and circumstances

  • Your immigration status

It’s important to consider whether Tax-Free Childcare is the right scheme for you and your family if you’re already claiming Working Tax Credit, Child Tax Credit, Universal Credit, or childcare vouchers. Every family is different and requires different forms of support. To find out which scheme serves you best, you can use this helpful calculator.

*Note that If your Tax-Free Childcare application is accepted, your Working Tax Credit or Child Tax Credit will stop immediately. Once this happens, you won’t be able to receive them again.

15 Hours Funded:

In England, there are two government funded 15 hours free early education schemes that offer childcare for children aged two, three and four:

  • 15 hours funded childcare for eligible 2-year-olds

What is 15 hours funded childcare:

In England, there are two government funded 15 hours free early education schemes that offer childcare for children aged two, three and four:

  • 15 hours funded childcare for eligible 2-year-olds

This means that your little one will get a funded childcare placement with a government approved provider (meaning they have to be registered with Ofsted and participate in the scheme). Halo Nursery is an approved childcare provider and proudly takes part in this scheme.

How to Apply for 15 hours funded Childcare:

All you need to do to receive these funded hours is contact your nursery, share proof of your child's age (their birth certificate) and fill out a declaration form. They will then apply on your behalf.

15 Hours funded for 2-year-olds:

Your 2-year-old is eligible for 15 hours of funded childcare per week if you live in England and get any of the following benefits:

  • Income Support

  • Income-based Jobseeker’s Allowance (JSA)

  • Income-related Employment and Support Allowance (ESA)

  • Universal Credit, and your household income is £15,400 a year or less after tax, not including benefit payments

  • The guaranteed element of Pension Credit

  • Child Tax Credit, Working Tax Credit (or both), and your household income is £16,190 a year or less before tax

  • Working Tax Credit 4-week run on (the payment you get when you stop qualifying for Working Tax Credit)

  • Support through part 6 of the Immigration and Asylum Act - NASS support

They are also eligible if:

  • They are looked after by a local authority

  • Have an education, health, and care (EHC) plan

  • Get Disability Living Allowance

  • Have left care under an adoption order, special guardianship order or a child arrangements order

Note: It’s likely that you may have to pay for the extra costs like registration fee, meals, nappies, wipes, trips, etc.

Are you a NON-UK CITIZEN:

If your immigration status says you have ‘no recourse to public funds’, you might still be able to get 15 hours of funded childcare for your 2-year-old. Your eligibility depends on the following:

  • You must live in England and your household income must be no more than:

  • £26,500 for families outside of London with one child

  • £34,500 for families within London with one child

  • £30,600 for families outside of London with two or more children

  • £38,600 for families within London with two or more children

Funding in England - 30 Hours Funded:

Halo Nursery are pleased to offer 30 hours funded childcare for all eligible families. All 3 and 4-year-olds in England currently receive 15 hours a week government funded early education. If their parents are living and working in England, 3 and 4-year-olds may be entitled to 30 hours funded childcare, which is up to 1,140 hours per year in total!

What is the government’s 30 hours free funding offer:

Halo Nursery are pleased to offer 30 hours funded childcare for all eligible families. All 3 and 4-yearolds in England currently receive 30 hours a week government funded early education. If their parents are living and working in England, 3 and 4-year-olds may be entitled to 30 hours funded childcare, which is up to 1,140 hours per year in total!

If eligible you will be entitled to access the 30 funded hours from the beginning of the term following your child’s 3rd birthday. At Halo Nursery, we want to make sure that families of all attendance types can utilise this funding to its full potential.

Eligibility – Work Requirements:

  • The parent (and their partner where applicable) should be seeking the free childcare to enable them to work. Parents must earn or expect to earn the equivalent to 16 hours at National Minimum or Living Wage over the coming three months.

  • Where a parent is in a ‘start-up period’ (i.e., they are newly self-employed) they do not need to demonstrate that they meet the income criteria for 12 months.

Salary:

  • Parents must earn or expect to earn the equivalent to 16 hours at National Minimum or Living Wage over the coming three months. This equates to £120 a week for each parent over 25 years old or £112.80 a week for each parent between 21 and 24 years old and £56 a week for apprentices in their first year.

You can’t get 30 hours free childcare if you, or your partner, expect to earn £100,000 or more.

Age of Child:

  • Your child/children must be either 3 or 4 years old. You can apply for funding in the term prior to your child's 3rd birthday but the funding will not apply until the term after they turn 3.

Location:

  • This offer is for working families in England. If one or both parents is a non-EEA national, the parent applying must have recourse to public funds. If one or both parents is a non-EEA national and the parent applying does not have recourse to public funds, you will not be eligible.

  • For more information about eligibility criteria, please visit the Childcare Choices website or download the Department for Education eligibility document.