- Applications open on 2nd January for the first
wave of new government-funded childcare offers
- £400 million funding boost announced for early years
providers
- Start-up grant worth up to £1,200 launches for new
childminders
Applications for the first wave of the rollout of the largest
ever expansion of free childcare for working parents will open on
2 January, the government has announced today (Wednesday
29th November).
From January, eligible working parents of two-year-olds will be
able to register to access 15 hours free childcare per week from
April 2024, the first step in the government’s long-term plan to
give working families a brighter future. The recommended time to
register is between mid-January and the end of February.
As part of the largest investment in childcare in England’s
history, further increases to government funding rates for
childcare are also being confirmed today. In 2024-25 alone, we
are investing over £400 million to deliver a significant uplift
to local authority hourly rates, to ensure enough places are
available wherever they’re needed around the country.
National average hourly rates paid by the government will be
£11.22 for under twos, £8.28 for two-year-olds, and £5.88 for
three- and four-year-olds from April. These rates reflect the
increase in the National Living Wage from April 2024, which makes
up a significant proportion of providers’ costs.
From tomorrow (Thursday 30th November), funding will also be
available for new childminders who join the profession or who
completed their registration on or after 15th March 2023, or
those re-registering at least 12 months after the cancellation of
a previous registration. There will be £600 available for those
who choose to register with Ofsted and £1,200 for those who
choose to register with a childminder agency.
This is designed to support thousands of new childminders to
enter the sector and create new, quality, childcare settings
across the country to further increase choice and flexibility for
families.
Education Secretary said:
“Our fantastic childcare offer is going to start supporting
eligible families in less than six months’ time, and I want to
make sure that parents and providers are prepared.
“From April next year, eligible working parents of two-year-olds
will be able to access 15 hours of government-funded childcare a
week, making sure parents no longer have to choose between a
career and a family, and doubling down on this government’s
commitment to getting more people into work and growing the
economy.
“I know the delivery of this transformation is no easy task,
which is why I am pushing ahead with increased funding rates
across the country and up to £1,200 for new childminders,
knocking down barriers to recruiting and retaining the talented
staff that provide such wonderful care for our children.”
Government is also offering ongoing support for the over two
million parents on Universal Credit, many of whom could now also
be eligible for up to £951 a month if they have one child and
£1,630 if they have two or more children, to help cover the costs
of their childcare bills – this marks a 47% boost in support.
Chief Executive of PACEY (Professional Association for
Childcare and Early Years) Helen Donohoe said:
“We know that the ambitious plans for the expansion of early
education and childcare will need to see growth right across our
sector, and not least in the number of childminders.
“We therefore welcome the launch of the start-up grants scheme,
for new and returning childminders, and look forward to working
with all providers as more and more parents come on board.’’
ENDS
Notes to editors
The government’s largest ever expansion of free childcare in
England will be implemented in phases from 1st April
2024:
- April 2024: 15 free hours for working parents of
two-year-olds
- September 2024: 15 free hours for working parents of nine
months to the start of school
- September 2025: 30 free hours for working parents of nine
months to the start of school
From Tuesday 2nd January, parents will be able to
apply for their April 2024 entitlements on the existing
application page here. The recommended
time to register is between mid-January and the end of February.
An easy explainer document on funding rates calculations can be
found here.
More information on how to apply to the Childminder Start-Up
Grant can be found from Thursday 30thNovember here.
On Tax Fre Childcare
Tax Free Childcare provides working families with children up to
the age of 11, or 16 if their child has a disability with £2,000
a year per child or £4,000 a year if their child is disabled.
For every £8 paid into a Tax-Free Childcare account, eligible
families automatically receive an additional government top up of
£2 to put towards childcare costs.
