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Working parents of children aged between nine months and four years old in England now have access to 30 hours a week of childcare during term time.
Ministers say 530,000 more children are benefiting from government-funded childcare since the free hours scheme expansion began.
But there are continuing concerns about the number of staff and places.
How expensive is childcare in the UK?
The average cost of full-time nursery (50 hours a week) for a child under two in England is £12,425 in 2025.
That’s down 22% from 2024, according to the Coram Family and Childcare charity, reflecting the recent expansion of funded hours.
The charity tracks the cost of childcare across Great Britain.
Its data shows Wales is the most expensive place for under-twos, at £15,038.
The cost of a full-time place for three and four-year-olds went up in England, Scotland and Wales.
In Northern Ireland, separate figures show that in 2024, the average monthly cost of childcare was:
- £520 for children under one
- £500 for one-year-olds
- £415 for three-year-olds
- £190 for four-year-olds
How does free childcare in England work?
In England, all three and-four year olds are eligible for 15 hours of government-funded childcare, regardless of their parents’ working status.
Other help is also available, but it depends on the age of the child and whether the parents are working or receiving certain benefits.
Since September 2025, working parents have been entitled to:
- 30 hours of funded childcare for children aged between nine months and four years old
To qualify for the hours, the majority of parents must earn more than £9,518, but less than £100,000 per year.
Those on certain benefits can get:
- 15 hours of free childcare for two-year-olds
Parents who do not work might still be eligible for 30 hours of free childcare if their partner works, or they receive some benefits – for example if they are on maternity or paternity leave.
The most recent official figures show that the number of children who receive free childcare hours in England rose by 33% in the 12 months to January 2025, to a record high of 1.7m.
In September, the government said it had exceeded its target to provide funded childcare to an additional half a million children.
- UK government: Childcare choices
- UK government: Childcare calculator
How do you apply for 15 or 30 hours of free childcare?
The government website has details of the deadlines to apply for each age group.
For the working parent entitlement, you can apply once your child is 23 weeks old but the funding starts at the beginning of the term after the child reaches nine months old.
The terms start on 1 September, 1 January and 1 April.
If your child is eligible but you don’t apply before the start of the relevant term, your funding won’t begin until the start of the following term.
Once your application has been approved, you will receive an 11-digit code which you need to give to your childcare provider.
Free childcare hours are designed to be used over 38 weeks of the year – during school term time.
However, some providers will stretch them over 52 weeks if children use fewer hours per week.
What is not covered by the free childcare hour funding?
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In February 2025, the Department for Education (DfE) wrote to nurseries saying parents should be able to opt out of paying for these extras, “to ensure no family is priced out”.
However, some providers say they use these payments to subsidise the cost of the free hours for three and four-year-olds.
More than 5,000 nurseries signed an open letter to the DfE asking for the new opt-out rules to be delayed.
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Are there enough childcare places?
The DfE said an additional 35,000 staff and 70,000 places would be needed to meet demand by September 2025, when the free hours increased again.
The number of childcare places had already risen by 44,400 between 2023 and 2024, according to its figures.
But the education regulator Ofsted has warned that places have not been evenly spread across the country.
The number of childminders – those providing early years care in private homes – has decreased.
On average, so-called “childcare deserts” have lower household incomes and higher levels of deprivation than other areas.
- Britain’s nursery problem: Parents still face ‘childcare deserts’
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Early years charities are concerned that the latest figures from the DfE show that the number of two-year-olds from disadvantaged backgrounds receiving free hours is down from 75% in 2024 to 65% in 2025.
However, the DfE says some families have been incorrectly recorded in the statistics, so the figures should be treated with caution.
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Education Secretary Bridget Phillipson said early years had been her “priority from day one”. However, nursery bosses argue the government’s updated funding rates for 2025 do not offset their rising energy and staff costs.
The Early Years Alliance charity said about 185 nurseries of 1,100 it surveyed said they were “likely” to withdraw from the scheme within the next 12 months “due to unsustainable financial pressures”.
The government has promised to create 100,000 additional childcare places and more than 3,000 new nurseries in schools.
It says more than 5,000 new childcare places opened in nurseries on school sites in September.
What childcare help is available in Scotland, Wales and Northern Ireland?
How does tax-free childcare work?
Parents may be entitled to other support, including the UK-wide tax-free childcare scheme.
For every £8 paid into an online childcare account, the government adds £2 (up to £2,000 per child per year, or £4,000 for disabled children).
Parents can use the money to pay for approved childcare, for example:
- childminders, nurseries and nannies
- after-school clubs and play schemes
The childcare provider must be signed up to the scheme.
Parents who qualify for free childcare hours can save in the tax-free scheme as well.
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