Free childcare changes explained as thousands more parents eligible from April

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Free childcare rules are changing (Image: Getty Images/iStockphoto)
Free childcare rules are changing (Image: Getty Images/iStockphoto)

Free childcare rules are being expanded to include younger children from next month as part of a major shake-up that will help millions of working parents.

At the moment, parents of children aged three and four in England are entitled to 15 hours of free childcare a week. Some three to four year olds are eligible for 30 hours free childcare a week, if their parents work and meet certain conditions.

To get the full 30 hours if your child is three to four years old, you must earn a minimum of the equivalent of 16 hours a week at minimum wage, but less than £100,000 a year. This applies to both parents in a couple and single parents.

Free childcare hours are usually taken over 38 weeks (to cover term time) but you can normally spread it out to cover more weeks by using fewer hours a week. The free hours must be used with a registered childcare minder, such as some private nurseries or state-run pre-schools.

Here, we explain how childcare rules are changing to include younger children from April 2024. These changes affect parents in England only - there are separate free childcare systems in Wales, Scotland and Northern Ireland.

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Free childcare changes explained in full

From next month, 15 hours of free childcare a week will be available for eligible working parents of two year olds. Applications for April 2024 places opened in January this year. At the moment, you can only get free childcare for a two year old if you receive certain benefits, or if your child has a disability.

Then from September 2024, 15 hours of free childcare a week will be extended to all children from the age of nine months. Finally, the full 30 hours for all under-fives will be available from September 2025.

To be eligible, parents of these younger children must work and earn a minimum of the equivalent of 16 hours a week at minimum wage, and less than £100,000 a year.

What other childcare help is available?

Eligible parents can get up to £500 every three months - or £2,000 a year - for each of your children through the tax-free childcare scheme. For disabled children, the maximum amount you could get rises to £4,000.

The tax-free childcare scheme allows parents to pay into an online account, and the Government will then add a certain amount on top. For every £8 you pay into your online account, you'll get a free £2 added on by the government, up to the limits we mentioned above.

This money must then be spent on a registered childcare provider. You need to be earning at least the minimum wage, for the equivalent of 16 hours a week - the same goes for your partner if you have one.

Self-employed workers are also eligible if they earn this amount too. Both yourself and your partner will also have to earn less than £100,000 a year to qualify for the scheme, and you cannot have two accounts for the same child.

You usually have to be working to claim tax-free childcare, but there are some exceptions. In terms of the criteria for your children, your child must be aged 11 or under and usually will need to live with you.

They'll continue to be eligible for tax-free childcare until September 1 after their 11th birthday. If your child is disabled you may get up to £4,000 a year until they’re 17.

Levi Winchester

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