The UK government has recently introduced a new ‘free childcare’ scheme aimed at supporting working parents/carers and providing children with quality early education. This scheme is designed to alleviate the financial burden of childcare costs for parents/carers and ensure that more families can access affordable care for their young children.
The free childcare scheme for working parents/carers in England has been running since September 2017. Initially, it provided 30 hours of free childcare per week for 3- and 4-year-olds with eligible working parents/carers for 38 weeks of the year. In April 2024, the scheme expanded to include 15 hours of free childcare for eligible 2-year-olds and there are further expansions planned this year. The scheme runs in England. There are:
Upcoming Changes To The Free Childcare Scheme
- Continued expansion for 2-year-olds: This started in April 2024, working parents of 2-year-olds should now be able to access 15 hours of free childcare per week.
- Full rollout: By September 2025, the scheme should be fully rolled out, and most working families with children under the age of 5 will be entitled to 30 hours of free childcare. This means parents can receive support from the end of maternity (child aged 9 months) until their child starts school.
- Wraparound childcare: More wraparound childcare places will be available for primary school-aged children, providing support both before and after school.
- Breakfast clubs: Free breakfast clubs will be introduced in some schools from April 2025 to ensure children are ready to learn at the start of the school day.
- Increased funding: Government figures say it is investing over £400 million to increase the number of staff and childcare places, boost recruitment and retention of childminders, and provide higher funding rates.
Some of these changes are aimed at schools and childminders but it is useful for early years settings to know about them when advising potential parents/carers.
Eligibility Criteria
Not all parents/carers are eligible for the scheme. To be eligible for the scheme, parents/carers must meet certain criteria, including:
- Being in work
- Meeting earning levels (equivalent of 16 hours/week at minimum wage and below £100,000)
- Having a child who is a UK resident and under the age of 5
Application Process
In England, working parents and carers can apply for the scheme online through the government’s official website. They will need to provide information such as their national insurance number, employment details, and their child’s birth certificate reference number. Once approved, parents/carers will receive a code that they must present to their chosen childcare provider. This code can change. Parents need to reconfirm their eligibility every three months to keep receiving free childcare. During this reconfirmation, if their circumstances have changed, they might receive a new code. It is a good idea to remind parents regularly about reconfirmation, or suggest they set a notification, so they don’t miss the reconfirmation window.
Ensuring Your Setting Is Ready For Updates To The Free Childcare Scheme
As an early years setting, you play a crucial role in the successful implementation of the scheme. You may have been working with the original scheme for years, but we’ve listed below some important things which are important for settings to do to get the best out of the expanded scheme.
Here are some key points for settings to consider:
- Code management
All providers will need to check the validity of the codes provided by parents and ensure they are renewed every three months. This helps maintain accurate records and ensures that parents continue to receive their entitlement. Funding rates are determined based on factors such as the number of eligible children, the cost of living in the area, and additional needs of children (e.g., those with special educational needs or English as an additional language). Your setting will be paid directly by the local authority for the hours of free childcare you deliver. - Capacity planning
With the new scheme including more children, there will be an increase in demand for childcare places. You should think about whether this will create potential capacity issues for you and plan accordingly. This may involve hiring additional staff, further training, expanding facilities, or adjusting schedules to accommodate more children. - Communication with parents/carers
Clear and consistent communication with parents is essential. Providers should inform existing and potential parents about the scheme, the eligibility criteria, and the application process. Regular updates and reminders about code renewals can help parents stay informed to make sure that they (and you) don’t miss out because of administrative errors or oversights. - Financial considerations
Many childcare institutions have welcomed the expansion of the scheme to include more children, although some have also criticised the remuneration rates given to the providers, saying that it doesn’t reflect the true cost of providing high quality childcare, resulting in a shortfall which the providers themselves are having to pick up. The scheme covers the basic childcare costs but settings are entitled to charge for additional services such as meals, nappies, or optional extras like trips. This is something that you will need to look at carefully within your childcare setting and decide on. It would be useful to have a written policy outlining any additional charges you make and it’s important to communicate these costs upfront to parents/carers to avoid misunderstandings. - Support for staff
The expansion of the scheme may require additional training and support for your staff to manage the increased workload, meet ratio requirements and ensure high-quality care. You could consider offering professional development opportunities and resources to help staff adapt to the changes, whether at apprenticeship level, management tier, or all the levels in between. - Collaboration with local authorities
All early years settings should work closely with local authorities to ensure a smooth rollout of the scheme. We have previously mentioned that this scheme only runs in England and there are many different local authorities in this region who can provide a variety of guidance, support, and resources to help your setting implement the scheme effectively according to local need.
The new free childcare scheme is a significant step towards making childcare more accessible and affordable for working parents/carers and your setting can play its part in helping more young children acquire a good early education. However, settings need to consider carefully the implications for their setting to ensure things are adequately resourced and administered to get the best outcomes for themselves and their children.
