Nursery Funding for 2 Year Olds: Free Hours & Eligibility Guide (2026)

Since April 2024, working parents in England can get 15 hours of free childcare per week for their 2 year olds. And since September 2025, that’s risen to 30 hours for working families — the same entitlement that 3-4 year olds get.

Below: who qualifies, how to apply, when your child can start, and how to find nurseries with funded places.

Understanding the 15 Hours Free Childcare for 2 Year Olds

The 15 hours free childcare entitlement for 2 year olds is part of the government’s phased expansion of early years funding. Launched in April 2024, it provides working parents with 570 hours of government-funded childcare per year (15 hours per week for 38 weeks).

This funding can be used at:

• Day nurseries
• Nursery schools
• Pre-schools
• Registered childminders
• Some school nursery classes

The funded hours are designed to cover term-time only (38 weeks per year), though many nurseries offer the option to “stretch” your entitlement across more weeks at fewer hours per week.

How the Expansion Timeline Works

The government has been rolling out extended childcare entitlements in phases:

• April 2024: 15 hours per week for working parents of 2 year olds
• September 2024: 15 hours per week for working parents of children aged 9 months to 2 years
• September 2025: 30 hours per week for working parents of children aged 9 months to 2 years

This means that if your child is currently 2 years old, you can access 15 hours now, and when they turn 3, you will become eligible for 30 hours free childcare if you meet the working parent criteria.

Eligibility Criteria for Free Childcare for 2 Year Olds

To qualify for the 15 hours free childcare for 2 year olds, you must meet specific working requirements. These differ from the universal entitlement available at age 3.

Working Parent Requirements

Both parents in a two-parent household (or the sole parent in a single-parent household) must:

• Be in paid work, or on sick leave, annual leave, or parental leave
• Each earn at least the equivalent of 16 hours per week at National Minimum Wage (£12.21/hr for 21+, meaning £195/week or about £10,158/year)
• Each earn less than £100,000 per year individually

Self-Employed Parents

If you are self-employed, you can still qualify for funded childcare. You must:

• Be registered as self-employed with HMRC
• Expect to earn at least the minimum income threshold over the coming tax year
• Provide evidence of your self-employment status when applying

Self-employed parents should be aware that your eligibility is based on expected earnings, not last year’s accounts. This can be helpful if you are growing your business or have recently become self-employed.

Other Eligible Circumstances

You may still qualify even if you are not currently working if:

• You are on sick leave or annual leave
• You are on parental, maternity, paternity, or adoption leave
• You have a disability or caring responsibilities and meet specific criteria
• Your partner is working and you receive certain benefits

Check the funding eligibility checker to confirm your individual circumstances.

How to Apply for Nursery Funding for 2 Year Olds

Allow plenty of time — ideally a full term before you need funded hours to start.

Step-by-Step Application Process

1. Apply Online: Visit the Childcare Choices website (www.childcarechoices.gov.uk) to complete your application at least one term before you want to start
2. Gather Required Information: You will need:
   • Your National Insurance number
   • Your partner’s National Insurance number (if applicable)
   • Details of both parents’ employment and income
   • Your child’s birth certificate or passport
3. Receive Your Code: If eligible, you will receive an 11-digit eligibility code within a few days
4. Share with Your Nursery: Give this code to your chosen nursery so they can verify your entitlement with the local authority
5. Reconfirm Every Three Months: You must reconfirm your details every three months to maintain your entitlement

When to Apply

Apply at least one term (approximately 3 months) before you want your funded hours to start. This gives you time to:

• Receive and process your eligibility code
• Find a suitable nursery that accepts funded places
• Secure your child’s place
• Complete the nursery’s registration process

If you miss the deadline for one term, your funded hours will start the following term instead.

When Your 2 Year Old Can Start Nursery with Funded Hours

Your child can start using their 15 funded hours from the term after they turn 2. England has three start dates per year:

• 1st September: For children born between 1st April and 31st August
• 1st January: For children born between 1st September and 31st December
• 1st April: For children born between 1st January and 31st March

For example, if your child turns 2 on 15th June, they can start using their funded hours from 1st September. If they turn 2 on 20th November, they can start from 1st January.

Many parents choose to start their child at nursery before they become eligible for funded hours, paying for all hours until the funded entitlement begins. Others wait until the funded hours start to reduce costs.

Nursery Costs for 2 Year Olds: Understanding Additional Charges

While the 15 hours free childcare for 2 year olds significantly reduces costs, most working parents still need to pay for additional hours and other charges.

Paying for Additional Hours

If you need more than 15 hours per week of childcare (for example, if you work full-time), you will need to pay for the extra hours at your nursery’s standard rate.

Average hourly rates for 2 year olds vary by region:

• England average: £7.50–£9.50 per hour
• London: £10–£15 per hour
• South East: £8–£12 per hour
• North and Midlands: £6–£9 per hour

For a full-time place of 50 hours per week:

• You receive 15 funded hours
• You pay for 35 additional hours
• At £8 per hour, this costs £280 per week or approximately £1,120 per month

Use our childcare cost calculator to estimate your specific costs based on your location and hours needed.

Additional Charges from Nurseries

Nurseries may charge for:

• Meals and snacks: £2–£5 per day
• Nappies and wipes: £5–£10 per week
• Additional activities: £10–£20 per term for special sessions
• Registration fees: £25–£100 one-off charge

Always ask for a full breakdown of costs when choosing a nursery. Some settings include meals and nappies in their hourly rate, while others charge separately.

Stretched Offers

Many nurseries allow you to “stretch” your funded hours across more weeks of the year. Instead of receiving 15 hours per week for 38 weeks, you might receive:

• 11.5 hours per week for 50 weeks
• 10 hours per week for 52 weeks

This can be helpful if you need consistent year-round childcare, though you receive fewer hours per week.

Combining Funding with Tax-Free Childcare

To further reduce your nursery costs for 2 year olds, you can combine the 15 hours free childcare with Tax-Free Childcare.

Tax-Free Childcare is a government scheme where:

• You pay into an online account
• The government adds 20% on top (up to £500 every three months)
• That’s up to £2,000 per child per year in free government money

You can use Tax-Free Childcare to pay for:

• Additional hours beyond your funded entitlement
• Meals and consumables
• Breakfast clubs and after-school care
• Holiday clubs

Important: You cannot use Tax-Free Childcare and claim childcare costs through Universal Credit at the same time. If you receive Universal Credit, you may be able to claim back up to 85% of childcare costs through that system instead. See our guide on Universal Credit childcare for more details.

Finding Nurseries That Accept Funded 2 Year Olds

Not all nurseries accept government-funded places for 2 year olds. Providers must be registered with their local authority to offer funded places, and some choose not to participate due to the administrative burden.

How to Find Funded Nurseries Near You

1. Use Our Directory: Search for nurseries near you and filter for those that accept funded 2 year olds
2. Check Local Authority Lists: Your local council maintains a list of registered providers offering funded places
3. Ask Directly: Contact nurseries to confirm they accept funded 2 year olds before visiting

When searching for “nursery for 2 year olds near me”, look for settings that clearly state they accept government funding. This information should be displayed prominently on their profile or website.

What to Look for in a Nursery for Your 2 Year Old

When choosing a nursery, consider:

• Ofsted rating: Look for Good or Outstanding settings
• Staff ratios: For 2 year olds, the legal requirement is 1 adult to 4 children
• Dedicated 2-year-old room: Some nurseries have separate rooms for different age groups
• Outdoor space: Important for physical development
• Meal provision: Check if healthy meals are included or charged separately
• Transition support: How they help 2 year olds settle in

Visit at least 2–3 nurseries before making your decision. Most offer taster sessions or trial mornings to help your child settle in gradually.

Understanding the Broader Funded Childcare Picture

The 15 hours entitlement for 2 year olds sits within a broader system of government childcare support. Understanding how these different schemes work together helps you maximise your entitlement.

The Complete Funding Pathway

• 9 months to 2 years (from September 2024): 15 hours for working parents
• 2 year olds (from April 2024): 15 hours for working parents
• 3–4 year olds: 15 hours universal entitlement for all children, or 30 hours for working parents

This means your child’s funded hours will increase as they get older. By the time they turn 3, you could access 30 hours free childcare if you continue to meet the working parent criteria.

Other Support Available

Beyond the free hours, you may also be able to access:

• Tax-Free Childcare: Up to £2,000 per child per year
• Universal Credit childcare element: Up to 85% of costs (cannot combine with Tax-Free Childcare)
• Childcare vouchers: If your employer offered them before October 2018, you may still be enrolled
• Employer-supported childcare: Some employers offer additional childcare benefits

See our free childcare hours guide for a full overview of all available support.

Regional Variations: Scotland, Wales, and Northern Ireland

This guide focuses on the English system, but different rules apply in other UK nations:

Scotland

• Eligible 2 year olds (families on certain benefits, looked-after children, kinship care) receive 1,140 hours per year
• All 3-5 year olds get 1,140 hours regardless of working status
• Hours can be used flexibly across the year

Wales

• All 3–4 year olds receive 30 hours (12.5 hours education + up to 17.5 hours childcare)
• 2 year olds from low-income families may qualify for Flying Start provision
• Different eligibility criteria apply

Northern Ireland

• Pre-school places for 3–4 year olds only (2.5 hours per day)
• No funded provision for 2 year olds except in specific circumstances

If you live in Scotland, Wales, or Northern Ireland, check with your local authority for specific entitlements and application processes.

Common Challenges and How to Overcome Them

“I Cannot Find a Nursery with Funded Places Available”

Demand for funded places often exceeds supply, particularly in urban areas. If you are struggling:

• Apply early (ideally 6+ months before you need care)
• Consider childminders as well as nurseries (they often have more availability)
• Join waiting lists at multiple settings
• Check if new nurseries are opening in your area

“My Income Fluctuates (I’m Self-Employed)”

If your income varies month-to-month, base your application on your expected annual earnings. As long as you meet the minimum threshold averaged over the year, you should remain eligible. Keep evidence of your income in case you need to demonstrate eligibility during your quarterly reconfirmations.

“My Eligibility Code Was Declined”

If your nursery reports that your code has been declined, check:

• That you have reconfirmed your details every three months
• That your income and employment details are up to date
• That your code was entered correctly by the nursery

Log into your Childcare Choices account to verify your status and update any changed circumstances.

Making the Most of Your Funded Hours

To maximise the benefit of your 15 hours free childcare for 2 year olds:

1. Plan Your Hours: Decide whether you want concentrated hours (e.g., three full days) or spread hours (e.g., five mornings) based on your work pattern
2. Understand Restrictions: Some nurseries may have minimum attendance requirements for funded children
3. Budget for Extras: Remember to factor in costs for meals, nappies, and additional hours when planning your childcare budget
4. Combine with Other Support: Use Tax-Free Childcare or Universal Credit childcare costs to reduce your overall expenses
5. Review Regularly: As your child approaches age 3, prepare to transition to the 30 hours entitlement

Next Steps

If you think you are eligible for nursery funding for your 2 year old:

1. Check Your Eligibility: Use the funding eligibility checker to confirm you meet the criteria
2. Apply Early: Submit your application at least one term before you need the funded hours
3. Find a Nursery: Search our directory of registered nurseries that accept funded 2 year olds
4. Calculate Costs: Use the childcare cost calculator to estimate your remaining costs after funded hours
5. Explore Additional Support: Read about Tax-Free Childcare and nursery costs to understand your full entitlement

The funded hours for 2 year olds save working families roughly £5,000–£7,000 per year. The key is applying early and finding a nursery with available funded places — they fill up fast.