September 1, 2025

New nursery funding launched in England

From 1 September 2025, eligible working parents in England can access 30 hours per week of free childcare (during term time) for children aged 9 months to 4 years, expanding the existing entitlement.

Eligibility requirements include employment (or an upcoming job) amounting to at least 16 hours per week at the minimum wage, and household income between around £9,518 and £100,000 annually.

Parents must apply through a gov.uk childcare account, receive an 11-digit eligibility code, and reconfirm eligibility every three months.

From this Autumn, the government is also planning to roll out a greater number of school-based nursery spaces.

However, there are still concerns around the effectiveness of the funding plans include:

Funding shortfalls: Insufficient government funding relative to rising operational costs—including recently introduced minimum wages and national insurance requirements—has led many nurseries to raise fees or limit funded places.

Provider sustainability: Up to 60% of nurseries plan to limit or refuse funded places due to inadequate reimbursement and banned additional charges, potentially reducing access for parents.

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