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Early learning and childcare funding
Spring Budget 2023 announcements regarding childcare funding support
The new Free Early Education Entitlements are to be introduced in phases:
- from April 2024, all working parents of two-year-olds will be able to access 15 hours per week
- from September 2024, all working parents of children aged 9 months up to three-years-old will be able to access 15 hours per week
- from September 2025, all *eligible working parents of children aged nine months up to three-years-old will be able to access 30 hours free childcare per week.
*To access the extended hours the present eligibility criteria requires parents to be working more than 16 hours a week and earning less than £100,000.
We are waiting on more details from the government and will update the information contained on this page when we receive it.
There are many schemes available to help you give the best start to your child and to help you with the costs.
- Finding local childcare
- 15 hours of free childcare for 2 year olds
- Free Early Education Entitlement for 3 and 4 year olds
- Extended Hours Entitlement for 3 and 4 year olds for working parents
- Can I receive free childcare?
- Care to Learn
- Childcare Sufficiency Assessment
Finding local Childcare
Tower Hamlets has some excellent nurseries, pre-school playgroups and childminders that will help children learn and play. There are a few places to find out more about what is available for you and your family locally:
15 hours of free childcare for 2 year olds
From the age of two until they turn three, some children may be entitled to 15 hours of free early education and childcare during termtime.
There are some criteria you must meet for your child to qualify.
Families can usually qualify if they claim the following:
- 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
- Child tax credits, and your household income is £16,190 a year or less before tax
- The guaranteed element of Pension Credit
- The Working Tax Credit 4-week run on (the payment you get when you stop qualifying for Working Tax Credit)

Two-year-olds can also get free childcare if they meet extended eligibility criteria, set out by the Department for Education (DFE).
1.Children of Zambrano Carers
A Zambrano Carer is the primary carer of a British citizen child, but is not a British citizen themselves. Requiring the carer to leave the UK would mean the child would be unable to live in the United Kingdom.
Although Zambrano Carers have no recourse to public funds, they are allowed to work in order to support the child. The children of Zambrano Carers will be eligible for a free place if their parents or carers meet similar low level income requirements to others eligible to receive the 2YO entitlement (e.g. a net income threshold of £15,400).
2.Children of families with no recourse to public funds with a right to remain in the UK on grounds of private and family life under Article 8 of the European Convention on Human Rights
Children of families with no recourse to public funds with a right to remain in the UK on grounds of private and family life under Article 8 of the European Convention on Human Rights
These families are entitled to work and so to be eligible for a free place the parents or carers must also meet the low level income requirements of the 2YO entitlement (e.g. a net income threshold of £15,400).
To assess income to be eligible for a free place check one of the following or alternative evidence:
- P60
- Pay slip
- Letter from employer or bank
To assess eligibility for a free place provide:
Evidence of right to remain in the UK under Article 8:
- Letter from Home Office granting leave to remain in the UK together with a biometric residence card
3.Children of a subset of failed asylum seekers (supported under section 4 of the Immigration and Asylum Act 1999 – ‘the 1999 Act’).
Children of those supported under section 4 of the Immigration and Asylum Act 1999
Children whose families receive support under section 4 of the 1999 Act are eligible for 2YO funding because they are temporarily unable to leave the UK and would otherwise be destitute. These families therefore satisfy the low income requirements to be eligible for the entitlement.
Assessing eligibility for a free place for refused asylum seekers
To qualify for section 4 support, refused asylum seekers must be destitute and meet a narrow set of criteria. The support consists of accommodation and £35.39 a week via a pre-paid Visa card (ASPEN card). If the child is in a family receiving support under section 4 the child is entitled to a free place.
Evidence of support under section 4 of the Immigration and Asylum Act 1999:
- Letter from the Home Office confirming s4 support
- Valid ASPEN card
4.Looked After Children (Section 25 Child Act 1989)
Children who are being looked after by local authority. More information about this policy is on the government website.
How to apply
Once you have checked your eligibility and chosen your provider, please complete online application form . If you are unable to complete this online, please attend your local Children and Families Centre and one of staff will support you to complete it.
Early Learning for two-year-olds (EL2) dedicated phone line 020 7364 1553
You can apply using the online application form or the Parent Portal.
Free Early Education Entitlement for 3 and 4 year olds (Universal Hours)
All 3 and 4 year old children in Tower Hamlets are entitled to 570 hours of free early education or childcare a year, beginning in the term after they reach three years of age. This is often taken as 15 hours each week for 38 weeks of the year (term-time). Although this can be stretched over a full year to better suit the needs of the parent. The Free time would then be applied on a pro-rata basis. The childcare provider applies directly to the local authority for funding. Parents must show proof of their child’s age to the childcare provider and sign an agreement form in order to receive funding.
Extended Hours Entitlement for 3 and 4 year olds for working parents

Since September 2017 the government increased the number of hours of free childcare available to eligible working parents of 3 and 4 year olds. The offer consists of a total of 1,140 hours across the year (including the Universal Hours), 30 hours per week for the 38 weeks of the school year, although this offer can be stretched across the full year to better suit the needs of working parents.
Not all providers will be able to offer the full hours that parents are entitled to. Parents will be able to use more than one childcare provider to ensure they can use their full entitlement.
Can I receive free childcare?

The HMRC Childcare Choices website determines who can receive funding for childcare.
If you do not have access to a computer, call the HMRC Customer Interaction Centre to find out if you qualify for funding or clear up any queries
Tel: 0300 123 4097
Please note that for 3 year olds, the entitlement starts from the term immediately after the child’s third birthday, until the term in which they become four. It is strongly recommended that parents check now, if you think that you can qualify for the next term along with your child. Please see our guides:
Further information on all forms of Funding for Childcare (including Childcare Tax Credits) can be found at Gov.uk website and/or the Childcare Choices website.
Reconfirming your eligibility for Extended hours free childcare
You must reconfirm your eligibility termly and you can do this by signing in to your account.
See our guide on how to reconfirm eligibility for 30 hours free childcare.
What if I miss the re-confirmation deadline?
If you miss the deadline, or if your circumstances change, you will receive a message to say that your entitlement has stopped, you may have a period of grace where you will be able to keep your childcare place. In this instance, you should talk to your childcare provider.
Your provider must be given your code in order to confirm that you child can continue to receive the free childcare place.
Please note that the information above also applies to additional hours placements offered by maintained nursery schools and nursery classes within primary schools.
Always apply for a 30 hours code in before the end of term.
Tax-Free childcare
For Working families, including self-employed, in the UK. You must be earning under £100k and at least £139 per week (equal to 16 hours at the National Minimum or living wage) each.
You are not receiving Tax Credits, Universal Credit or childcare vouchers.
Child/ren aged 0-11 (or 0-16 if disabled)
For every £8 you pay into an online account, the government will add an extra £2, up to £2,000 per child per year
NB: If your income or working pattern has changed because of COVID-19 check your eligibility before applying or reconfirming.
Tax Credits for Childcare
Please note Tax Credits are closed to new application for most people from 1 February 2019. If you cannot make a new claim for Tax Credits, you may be able to apply for Universal Credit Instead.
Universal Credit for Childcare
This is for working families claiming Universal Credit with children under the age of 17 years and not receiving Tax-Free Childcare. This can cover up to 85% of eligible childcare costs. Details can be found on the Childcare Choices Website.
Care to Learn
Young parents under the age of 20 receive funding support to help with the cost of childcare while they are learning and this is called ‘Care to Learn’.
In order to receive Care to Learn funding you must:
- Receive education or look to start some form of education that receives some public funding
- On the day of your course or learning programme be under 20 years of age
- Care for your own child or children.
Care to Learn funding can be claimed by either the child’s father or mother, if the other parent is unable to provide childcare, or the other parent is not claiming childcare tax credit. If you have more than one child, you can get support for all of them.
Only Ofsted registered childcare providers can be used and the Family Information Service can you help you to find a childcare provider in your area.
Care to Learn will pay the childcare provider directly and any money needed to help with travel costs will be paid straight to the learning or training provider, who will then pass that onto the parent.
For more information on Care to Learn call the helpline on 0800 121 8989 or visit Care to Learn website.
Disability Access Fund
The Disability Access Fund (DAF) is the new funding system for Early Years’ providers to help children with disabilities or special educational needs. The funding helps with access to Free Entitlement places for Early Years, by supporting providers in making reasonable adjustments to their settings.
Childcare Sufficiency Assessment
Tower Hamlets’ Integrated Early Years’ Service (IEYS) has a statutory duty under the Childcare Act 2006, to ensure that there is sufficient and accessible high-quality Early Years and childcare provision.
Before you become a childminder or childcare provider, you should research what childcare provision is already available in the area where you wish to set up your business, to ensure that it is sustainable. It is important that your business is able to meet the local needs of the community.
The IEYS collects headcount data on a regular basis from existing early years’ providers, which is added to our sufficiency map. The map gives an overview of the availability and quality of early years’ provision. We suggest that you also complete your own market research in the area you are planning to set up your business and not just rely on the Childcare Sufficiency Assessment.