Parents and carers - 2, 3 and 4 year old Early Education funding - Print version

Early education funding entitlement information for parents and carers

Research shows that when children access high-quality early years provision, this significantly improves their learning and prepares them for school.

Early education funding is provided by the Government and enables children to access a funded place when they meet certain criteria.

In Coventry we have high aspirations for every young child to make good progress in their development and learning, from birth, so that they have the best opportunities in life.

How is the early education place offered?

Early education-funded hours are delivered over 3 funding periods. Each funding period has a designated maximum number of funded hours/weeks that can be accessed by a child.  These hours/weeks are set by the local authority.

Childcare providers must deliver funded places in line with the termly designated hours/weeks. Hours/weeks from a previous term cannot be taken once that term has passed.

The 3 funding periods closely align with but are not exactly the same as the school term dates.

• Autumn funding period is between 1 September and 31 December
• Spring funding period is between 1 January and 31 March
• Summer funding period is between 1 April and 31 August

Help to find a funded place

The Coventry Family Information website holds up-to-date information on all early year’s providers in Coventry. More information [https://cid.coventry.gov.uk/kb5/coventry/directory/home.page].

Alternatively, if you require further support, please contact Coventry Early Years Business, Sufficiency & Funding Team on: 024 7697 5451 or email EYProviderfunding@coventry.gov.uk [mailto:EYProviderfunding@coventry.gov.uk]

Targeted funding for 2-year-olds

Some 2-year-olds will be eligible to receive 15 hours of funded early education and childcare per week, up to a maximum of 570 hours per academic year. Children must meet the date of birth criteria and parents must meet the eligibility criteria at either route 1 or 2

Eligibility route 1

• Income Support
• Income-based Job Seekers Allowance (JSA)
• Income-based Employment and Support Allowance (ESA)
• Universal Credit – and your household income is £15,400 a year or less after tax, not including benefit payments
• Guarantee 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

Eligibility route 2: for targeted 2-year-old funding

Parent/Carers with legal responsibility who do not meet route 1 criteria, may be eligible if they meet one or more of the conditions described in route 2

The child you are applying for:

• Is looked after by a local authority (for example you are a Foster Carer)

Evidence – you will need a letter from a relevant professional which includes the child`s name and date of birth

• Has a current Education and Health Care Plan (EHCP)

Evidence – a letter from a relevant professional with the child`s name and date of birth regarding the EHCP awarded

• Attracts Disability Living Allowance (DLA)

Evidence – you will need to show a copy of your child’s DLA award letter

• Has left care under an Adoption Order, Special Guardianship or a Child arrangements order

Evidence – you will need a letter from a relevant professional with the child`s name and date of birth or Special guardianship, Adoption or Residence order from the court

If you are a non-EEA citizen who cannot claim benefits:

If your immigration status says you have ‘no recourse to public funds’, you may still be entitled to receive free childcare for your 2-year-old.

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

• £26,500 for families with one child or
• £30,600 for families with two or more children. You cannot have more than £16,000 in savings or investments.

Proof of evidence will be required.

Eligibility Route 2 – Coventry’s Local criteria

Coventry has developed a local criterion to help ensure that every child who needs a Targeted 2-year-old place is able to access one. To be eligible for a place, the child you are applying for must meet one of the criteria set out below:

Child protection

Your child is supported through a child protection or child-in-need plan. A letter from the lead Social Worker would be required as evidence.

Coventry SEND

Your child has a diagnosed syndrome, condition or disability that significantly affects the ability to access learning or has 12 months of developmental delay in 2 or more out of the 4 areas of need. These are:

• Communication and Interaction
• Cognition and Learning
• Social, Emotional and Mental Health difficulties
• Sensory and/or physical needs

Your child is accessing additional services provided by health or local authority professionals. A letter from the relevant professional will need to be submitted as part of your application under this route

Early Help Support

Your child is accessing additional services provided by health or local authority professionals and you have a total household income of £20,000 or less a year, after tax.

Proof of your total household income for the year after tax, and a letter from the relevant professional will need to be submitted when applying.

An eligible child can access a funded place the term after their second birthday.

If you have legal responsibility for a 2-year-old or a child that is nearly 2, you can apply for a targeted 2-year-old funding code [http://www.coventry.gov.uk/2yearoldfunding].

Or you can visit your local Family Hub or ask a childcare provider to assist with an online check.

Once eligibility is confirmed you need to take the code to your chosen childcare provider and agree how the funding will be used.

Once a child has started a Targeted 2-year-old funded place, they will not lose this eligibility, even if your financial circumstances change. The child will continue to be able to access this funding until they seamlessly transition to universal funding, which is an entitlement for all 3- & 4-year-olds.

Funding for eligible working parents: for children aged 9 months to 3 years (expanded hours funding)

From September 2024 working parents, may be eligible to receive up to 15 hours per week of funded childcare, up to a maximum of 570 hours per academic year, for children aged 9 months to 3 years. From September 2025, this funding increases to 30 hours per week for eligible children.

Eligible parents can access expanded hours funding from the term after the child turns 9 months.

Parents must apply for expanded hours funding through the government website and must complete an online application form to determine eligibility. 

If you are eligible, you will receive a unique code which must be shared with your childcare provider.

Eligibility must then be re-confirmed every 3 months, as prompted by HMRC or the childcare provide.

Assuming other eligibility is met you will be able to take up a place for your child in line with the dates below, assuming your chosen childcare provider has availability.

We recommend you contact your chosen childcare provider as early as possible to secure a place.

Funding for all 3 and 4 year olds: universal entitlement funding

All 3 and 4-year-olds in England are entitled to access Universal funding, the term after the child’s 3rd birthday. This funding entitlement continues until the child starts a Reception Class place in a maintained, free school or academy.

Where the child remains in a PVI nursery or attends an independent school, they may continue to access this funding until they reach compulsory school age, which is the term after their 5th birthday.

You do not need to apply for a unique code from HMRC or the local authority in order for your child to access universal hours because this is a universal entitlement for all 3 and 4 year-olds.   

To access a place, please seek advice from your chosen childcare provider

Universal funding entitlement 

Every child in England is entitled to a maximum of 570 hours of funding per year, to be taken over no fewer than 38 weeks in any year. Children become eligible for universal funding from the start of the term after their 3rd birthday.

Funding for eligible working parents: for children aged 3 and 4 years (extended 30 hours funding)

In addition to the 15 hours per week that all 3 and 4-year-olds are entitled to, some parents will also be eligible to receive an additional 15 hours per week, bringing the total to a maximum of 30 hours per week over 38 weeks. This combined with universal funding provides a maximum of 1140 hours per academic year for eligible children.

Parent will need to meet certain criteria. for these additional hours and must complete an online application form to determine eligibility. The application can only be completed by the parent [http://https://www.gov.uk/apply-free-childcare-if-youre-working].

Parents must re-confirm their eligibility every three months as promoted by HMRC or their childcare provider

Once a child has started a Reception Class place in a maintained, free school or academy, they are no longer entitled to receive Early Education Funding. In some circumstances where the child remains in a PVI nursery or attends an independent school they may continue to access this funding until they reach compulsory school age, which is the term after their 5th birthday.

Eligibility criteria for working parents for children aged 9 months to 3 years

Expanded and extended hours funding

To be eligible to receive, expanded or extended hours funding, you (or your partner) must have a National Insurance number and at least one of the following:

• British or Irish citizenship - settled or pre-settled status or you have applied, and you are waiting for a decision, or you have permission to access public funds - your UK residence card will highlight this.

Your income

Over the next three months, you and your partner (if you have one) must each expect to earn at least:

• £2,380 before tax if you’re aged 21 or over (This is equivalent £183 per week)
• £1,788 before tax if you’re aged 18 to 20 (This is equivalent to £137 per week)
• £1,331 before tax if you’re under 18 or an apprentice (equivalent to £102 per week)

These figures represent the National Minimum Wage or Living Wage [https://www.gov.uk/national-minimum-wage-rates] for 16 hours a week, on average.

You can use an average of how much you expect to earn over the current tax year if:

• you work throughout the year but do not get paid regularly
• you’re self-employed and do not expect to earn enough in the next three months

You will not be eligible for expanded or extended hours funding if:

• You or your partner have an expected ‘adjusted net income’ over £100,000 in the current tax year. This includes any bonuses you expect to get
• Your adjusted net income is your total taxable income before any personal allowances and deductions such as Gift Aid.

To determine eligibility for these additional hours, a parent will need to apply and receive a unique code from HMRC via the Government’s Online Childcare Service [http://www.gov.uk/sign-in-childcare-account].

Applying for an eligibility code for children aged 9 months to 3 years (expanded and extended hours funding)

Applying for an eligibility code:

You must check your eligibility and apply for your unique code in line with the deadlines below. If you are approved, your code will start from the beginning of the next term.   

The deadline is the day before each new term begins, but we encourage you to apply earlier, and recommend applying at least six weeks before the deadline. If you do not apply before the deadline, you will not be able to access your child’s funding entitlement until the start of the next term

Some childcare providers may ask for your code before the deadline, so we recommend you speak to them to find out if this is the case.

Check if you are eligible [https://www.gov.uk/check-eligible-free-childcare-if-youre-working].

Reconfirming your child’s eligibility code (expanded and extended hours funding)

Once you have been issued a valid code, this must be re-confirmed every three months to ensure your child continues to remain eligible.

Failure to reconfirm could mean that your child’s access to expanded or extended hours funding, will cease. This means that although your family may continue to meet the eligibility criteria, the details held by HMRC are no longer “in date.”

If your circumstances have changed when you re-confirm your child’s code, meaning that you are no longer eligible, your child may continue to access funding for a short time if your they are already in attendance with a childcare provider. This is known as the ‘grace period’

Once the ‘grace period’ has ended, your child will no longer be able to access the expanded or extended funding, until the term after you have successfully re-confirmed your eligibility. If this is the case, you will need to meet the costs of your childcare until eligibility is resumed.

Please note: a child cannot start with a new childcare provider in their grace period.

Where can my child access a funded place?

Funded places can be offered by any childcare provider (subject to availability) who holds an early years’ registration with Ofsted or a Childminder Agency, and has been registered by the local authority to deliver early education-funded places

Approved childcare providers must comply with the terms and conditions of the Coventry Provider Funding Agreement at all times.

Approved childcare providers include:

• Day nurseries, pre-schools or playgroups
• Ofsted or Childminder Agency registered childminders
• School nursery classes or early years provision

Flexibility of funded places

Providers may offer flexible packages for early education-funded places, subject to the following standards:

• No session to be longer than 10 hours
• No minimum session length
• Not before 6am or after 8pm
• Sessions can be taken on any day of the week, including Saturdays and Sundays
• The child may access a maximum of two sites in a single day (separate provision on a school site is counted as one site)
• Meet the quality requirement as set out in regulations and in the statutory guidance
• No artificial breaks

The childcare provider will share information about the times and periods they are able to offer early education-funded places.

Getting the best out of your child’s funded hours: term time versus stretch weeks

Families can access up to 15 or 30 hours of early education funding per week, this means that a child is entitled to a maximum of 570 or 1140 hours per academic year, subject to eligibility. Funded hours can be taken over no fewer than 38 weeks and up to a maximum of 51 weeks per year, however not all providers are able to accommodate this flexibility.

Although funded provision must be available over at least 38 weeks of the year; the regulations do not prevent it being stretched over more than 38 weeks of the year, to enable the place to be delivered more flexibly i.e. taking fewer hours per week over more weeks of the year.

You must agree a set pattern of attendance with your Childcare providers, and this must be recorded on the Early Years Parent Funding Agreement.

Should I expect to pay additional charges to the childcare provider?

Early education funding is intended to deliver up to 15 or 30 hours a week of high-quality, flexible childcare. It is not intended to cover the costs of meals, snacks or other consumables, such as nappies, sun cream, nappy creams, additional hours or optional activities and trips. Childcare providers can charge for meals, snacks, consumables and optional activities as part of the funded place, although parents must be able to opt out of these charges.  Where a parent is unable or unwilling to pay these optional charges, they should speak to their childcare provider directly.  The provider should have a policy in place to describe alternative arrangements for parents who opt out of additional charges.  These arrangements might include; providing your own meals, snacks, nappies and sun cream from home.  The provider must not require parents to pay these charges as a condition of taking up a child’s funded place. Where parents choose to purchase additional private hours, meals, snacks, consumables or optional activities, this is a private matter between the childcare provider and the parent.

A childcare provider may ask you to pay a refundable deposit.  Providers should not request a registration fee for children who take up ‘funded’ hours only or those who are accessing Targeted funding for 2-year-olds.

 Childcare providers must not:

• Charge top-up fees in respect of the funded hours (this is the difference between what a provider normally charges, and the funding rate they receive from the local authority)
• Impose conditions that require payment for the funded hours upfront
• Require the purchase of lunch as a condition of accessing funded hours over a lunch period.
• Impose artificial breaks for children who access funded hours before or after lunch. Funded provision should be delivered in continuous blocks

Childcare providers must ensure that invoices are set out clearly. You should be able to easily recognise and understand what hours your child has accessed in relation to the funded hours and be able to see how the fees relate to any additional services or hours that are being charged for.

Moving a child from one childcare provider to another and missing termly headcount/census day.

Moving a child from one childcare provider to another

Headcount/census day occurs each term. Children taking up a funded place should normally be enrolled and attending the setting, by this date. All childcare providers must submit details of all children claiming funding to Coventry City Council, by this deadline.

If you move your child to a different childcare provider between the start of a new funding period, but before the termly headcount/census date, you will have to pay the exiting childcare provider for the hours the child has attended, up until the day they leave. Childcare providers cannot claim funding from Coventry City Council for any hours attended between the start of the funding period and the headcount/census date, if the child leaves the setting before headcount/census. You may also lose any deposit you have paid to the provider to secure the funded place.

If you move your child to a different childcare provider after the termly headcount/census date, the funding for that term will not automatically transfer with your child. It is up to individual childcare providers to decide whether or not they will transfer the funding.  There is no requirement for them to do so.

A claim may be made at the new childcare provider from the start of the next funding period/term. If you move your child to a new setting, mid-term, and your childcare provider does not agree to pass on the remaining weeks funding, you will be liable to pay the new provider for any hours attended until the start of the next funding period.

What if I have missed the termly headcount /census day, but I want my child to access a place?

If your child has is not enrolled and attending a childcare setting by headcount/census day, Coventry City Council may provide permission to the provider, to fund your child’s place if they meet the exceptional circumstances criteria.  If your child does not meet this criterion they will have to wait until the start of the next term to begin their funded place.

The Council may grant permission for a child to take up a place after headcount/census if:

• The child is newly arrived in the country
• The child is newly arrived in Coventry, from somewhere else in the UK and has not claimed a funded place elsewhere, during the same funding period
• The child is a child in care (CIC)
• Other exceptional circumstances (agreed at Coventry City Council’s discretion) For example, the family has been relocated due to domestic abuse.

Childcare providers must seek approval for children wishing to take up a place after the termly headcount/census date has passed, by contacting Coventry City Council. These places are subject to conditions and must be agreed by the Council before the provider offers and agrees to deliver a funded place.

Additional funding - Early Years Pupil Premium (EYPP)

What is Early Years Pupil Premium? (EYPP)

The Early Years Pupil Premium is an additional amount of money paid directly to childcare providers for funded children whose parents are in receipt of certain benefits, or who were formerly in local authority care but left this care because they were adopted, were subject to a special guardianship or child arrangements order.

This funding can be claimed by your childcare provider to enhance the quality of your child’s experience. This will help improve the teaching and learning facilities and resources, with the aim of positively impacting on your child’s progress and development. To claim this funding, the main benefit holder (parent/carer) needs to complete the EYPP section on the Early Years Parent Funding Agreement               

More information about EYPP eligibility criteria [https://www.gov.uk/get-extra-early-years-funding].

If you have any questions about your child’s eligibility to EYPP please speak to your Childcare Provider or email the Early Years Business, Sufficiency and Funding team at EYProviderfunding@coventry.gov.uk [mailto:EYProviderfunding@coventry.gov.uk].

Disability Access Funding (DAF) - Extra funding for children with SEND

What is Disability Access Funding (DAF)?

This is funding which is paid to childcare providers to help them to support children with special educational needs and disabilities.

It is intended to provide essential funding that helps childcare providers to break down barriers to attendance, by for example making reasonable adjustments to the environment.

Children who are in receipt of child Disability Living Allowance (DLA) and accessing some or all of their funded hours are eligible for DAF. DAF is paid directly to your child’s nominated childcare provider at a fixed annual rate.

To enable your childcare provider to claim DAF, you will need to show them evidence that your child is in receipt of DLA.

This evidence must be a copy of the award letter issued to them by the Department for Work and Pensions.

If you think your Childcare Provider may be able to claim DAF for your child, please let them know as soon as possible so they can approach the Local Authority to claim this funding.

Some Parents do not realise they can claim Disability Living Allowance (DLA). Where DLA is awarded to a child, Parents receive extra income into the household, which can make a huge difference. See if your child might be eligible for DLA [http://contact.org.uk/help-for-families/information-advice-services/benefits-financial-help/benefits-and-tax-credits/disability-living-allowance/].

If you would like more information about DAF, please see our handy guide: A Parent Guide to Disability Access Funding (DAF) [https://www.coventry.gov.uk/downloads/file/36488/a-parent-guide-to-disability-access-funding-daf-]

Special Educational and disabilities (SEND)

All childcare providers must be aware of their duties in relation to the SEND Code of Practice and the Equality Act 2010. Providers have a responsibility to ensure all children have full access to the Early Years Foundation Stage.

They must have arrangements in place to support children with SEND and should demonstrate clearly the approach to identifying and responding to the individual child’s needs.

Where a childcare provider identifies a child as having SEND they must work in partnership with parents to establish and agree effective support to meet the child needs.

All childcare providers will have access to a SEND Local Offer which sets out what provision is offered to them for children with a disability or identified special educational need. More information. [http://www.coventry.gov.uk/localoffer]

Help paying for childcare costs

What is tax-free childcare?

Tax-free childcare is a government initiative that helps parents to pay for childcare costs. You can get up to £500 every three months (up to £2,000 a year) for each of your children to help with the costs of childcare. This goes up to £1,000 every three months if a child is disabled (up to £4,000 a year).

If you get tax-free childcare, you’ll set up an online childcare account for your child. For every £8 you pay into this account, the government will pay in £2 to pay your provider.

You can get tax-free childcare at the same time as 30 hours' free childcare if you’re eligible for both.

Once you have set up your account you will need to reconfirm you are still eligible for tax-free childcare using your childcare service account.  This reconfirmation must be completed every three months.  It's easy to do; you just tick a box to confirm that your details haven't changed. You'll be reminded to do this, four weeks before the reconfirmation deadline.

How much you pay into your tax-free childcare account, and when, is up to you. You can make one-off payments (for example, by debit card) or set up a standing order to make regular payments into your tax-free childcare account.

You can pay up to 10 childcare providers from each tax-free childcare account. You'll need to make a separate payment for each eligible child.

Other people, such as family members and employers, can also pay into your tax-free childcare account.

When you use your tax-free childcare account to pay a childcare provider, it can take 2-3 working days for your money to reach them.

Who is eligible?

Find out if you are eligible for a Tax-Free Childcare account [https://www.gov.uk/tax-free-childcare].

You can use the Childcare Calculator [https://www.gov.uk/childcare-calculator] to work out if you'll be better off with tax-free childcare, before you apply and stop your Tax Credits, Universal Credit or Childcare Vouchers.

You can't apply for tax-free childcare for a child who is:

• your foster child
• living away from your home for six months or more
• in a young offenders' institution or secure children's home or training centre
• being looked after by a local authority, unless it is short-term respite care

If you're adopting a child, you can apply for Tax-Free Childcare when a court has made an adoption order.

Tax-free childcare can be used to pay for costs such as;

• childcare with regulated (approved or Ofsted registered) childcare providers, for example, day nurseries, pre-schools, childminders, playschemes, before, afterschool and holiday clubs and school-based provision.
• advance payments, block bookings and individual sessions
• the costs of employing a nanny or extra childcare if using a workplace nursery

If your childcare provider is not registered or approved, HMRC will tell you.  When they do, you'll no longer be able to pay that particular childcare provider using your tax-free childcare account.

You can continue to make payments into your tax-free childcare account and choose to pay a different childcare provider that has signed up to tax-free childcare.

Apply for tax-free childcare

Apply online for tax-free childcare [https://www.gov.uk/apply-for-tax-free-childcare].

If you apply for Tax-Free Childcare and someone else already gets 30 hours free childcare for that child, their 30 hours will stop at the end of the next term. You will be eligible for 30 hours free childcare instead.

Closing your tax-free childcare account

If you are no longer eligible for tax-free childcare, you can still add money to your account, but you won't receive any government contributions. You can still use the balance in your tax-free childcare account to pay for childcare.

If you no longer want to use your tax-free childcare account, you can withdraw your money. If you do, for every £8 you take out the UK government will also take back its £2 contribution.

Extra support

• 10 things parents should know about tax-free childcare [https://www.gov.uk/government/news/tax-free-childcare-10-things-parents-should-know]
• YouTube video: how to apply [https://www.youtube.com/watch?v=W-TMvTHUCdM]
• overview of the money towards paying for childcare costs [http://www.coventry.gov.uk/downloads/file/35182/help_paying_for_childcare_costs].

Help with childcare costs if you claim Universal Credit

If you are working and in receipt of Universal Credit, you can get help with childcare costs to help with childcare whilst you are in work. This includes holiday clubs, after-school and breakfast clubs. If you live with a partner, you both need to be working, unless your partner cannot look after your children.

How it works

1. You pay the childcare provider for the childcare they have provided.
2. You provide evidence of these costs to Universal Credit
3. Universal Credit reimburses you up to 85% of the cost of these fees.

Please note: You will only get the money back with Universal Credit after the childcare happens.

Universal Credit childcare costs [https://www.gov.uk/guidance/universal-credit-childcare-costs].

Further information regarding support with childcare costs can be found on the Childcare Choices leaflet. [https://www.coventry.gov.uk/downloads/file/42056/childcare-choices-support-with-childcare-costs-leaflet]

What do I do if I have a concern about my early education funded place?

If you are unhappy with the way the childcare provider is delivering your child’s Early Education Funding Entitlement place, you should raise your concerns with the childcare provider, in the first instance.

If you have done this but are not satisfied with the outcome of your concern, please complete the online form [https://www.coventry.gov.uk/eyconcernform].

If you are unable to access the online form, you can contact us on 024 7697 5451. Your concern will be logged and passed to a local authority officer for attention.