Early Years Funding

There is a variety of different funding available to support parents to access Childcare provision:

  • 2-year old disadvantaged funding
  • Working parents funding
  • Tax-free Childcare
  • Universal Credit Childcare
  • Early Years Pupil Premium
  • Disability Access Fund

For the most up to-date information please visit www.childcarechoices.gov.uk

2-year-old disadvantaged funding 

Your 2-year-old can get funded childcare if you live in England and you are entitled to any of the following benefits:

  • Income Support
  • Income-based Jobseeker’s Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Universal Credit, and your household income is £15,400 a year or less after tax, not including benefit payments
  • the guaranteed element of Pension Credit
  • are looked after by a local authority
  • have an education, health and care (EHC) plan
  • get Disability Living Allowance
  • have left care under an adoption order, special guardianship order or a child arrangements order

2-Year-old disadvantaged funding is for 15 hours a week term time only or 11.25 hours a week all year round. The funded begins the term after the child’s second birthday.

You can apply for 2-year-old disadvantaged funding at https://www.somerset.gov.uk/children-families-and-education/early-years-and-childcare/funding-for-2-year-olds/

Working parents funding

From September 2025, children will be entitled to working parents funding the term after they turn 9 months. To be entitled to the funding you and your partner (if you have one) must each expect to earn the equivalent of 16 hours a week at the National Minimum or Living Wage over the coming 3 months. The child must also live with you, you and your partner must not earn above £100,000 individually or if you are not in work you are due to start within 31 days of applying.

If you are not working and your partner is, you may be eligible working partners if:

  • You are on sick or annual leave
  • On shared parental, maternity, paternity or adoption leave
  • Receive the following benefits: - Incapacity benefit, severe disablement allowance, carer’s allowance, limited capability for work benefit, contribution- based Employment and Support Allowance.

Tax Free Childcare

Working parents can get up to £500 every 3 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 3 months if a child is disabled (up to £4,000 a year). This can be used at the same time as working parents funding.

To receive tax-free childcare you will set up an online childcare account (same the account is used for working parents funding) for your child. For every £8 you pay into this account, the government will pay in £2. You then send this money to us.

Tax-Free childcare can be used to pay for childcare including our out of school club.

Tax-Free childcare has the same requires as working parents funding. Please see above for eligibility requirements.

Universal Credit Childcare

Universal Credit will support parents who meet the criteria for childcare cost support.

You need to be in paid work or starting a job within a month.

If you live with a partner, you both need to be in paid work, unless your partner cannot look after your children.

It does not matter how many hours you work - there is no minimum although the hours of childcare provided must relate to the hours that you are in work.

It must be paid work, so you’re not eligible if you are volunteering and only getting money for expenses.

If you’re on sick leave, you may also be eligible if you’re getting Statutory Sick Pay.

If you’re on maternity, paternity or adoption leave, you may also be eligible if you’re getting one of the following:

  • Statutory Maternity Pay
  • Statutory Paternity Pay
  • Statutory Shared Parental Pay
  • Statutory Adoption Pay
  • Maternity Allowance

If your partner does not work but cannot look after your children

You can still claim childcare costs if your partner:

  • has a health condition or disability which means they have limited capability for work (LCW) or limited capability for work related activity (LCWRA)
  • cares for a severely disabled person (and is eligible for Carer’s Allowance)
  • has to be away from home temporarily, for example in hospital

Please note Universal Credit Childcare cannot be used alongside Tax-Free Childcare.

Early Years Pupil Premium 

Early Years Settings are able to access the Early Years Pupil Premium funding for eligible children. The money is used to support your child within the setting.

To be eligible you must receive one of the following:

You may also get early years pupil premium if your child is currently being looked after by a local authority in England or Wales or if your child has left care in England
or Wales through:

  • adoption
  • special guardianship order
  • a child arrangements order

To apply for this funding please speak directly to the setting.

Disability Access Fund (DAF)

If your child receives Disability Living Allowance (DLA) we can access the Disability Access Fund (DAF) and we use the money to support your child within the setting.

Please speak with us if your child receives DLA so we can apply for this funding on your behalf.