As a childminder, you may wish to offer Government-funded schemes such as 15 hours of free childcare for two-year-olds. Offering this scheme is not obligatory, however, if you plan to look after children aged two, offering such schemes could make your childcare services more attractive to a wide range of parents.
In this guide, we run through all things funding-related, from defining what the scheme offers, eligibility criteria, how to offer funded childcare, and how much funding you could receive.
Please bear in mind that there will be changes made to this scheme from April 2024 (see below).
What is the 15 Hours Free Childcare For 2-year-olds?
Not to be confused with the universal 15-hour scheme for three-four-year-olds, the 15 hours of funded childcare for two-year-olds is only available to parents who receive some form of support. The scheme allows parents up to 15 hours per week (570 hours per year) of funded childcare.
As a childminder, your local authority will fund you an hourly rate (usually £3-5). Offering the free 15-hour childcare scheme is your decision as a childminder.
There are many different reasons why childminders offer the scheme including:
- To help children from disadvantaged families.
- To diversify the socioeconomic background of their setting.
- To be an attractive childcare choice to more families.
- Some councils offer extra support to childminders offering this scheme.
- To help parents back to work.
When offering the scheme, keep the following in mind:
- No childcare session can be longer than 10 hours using the funded hours.
- No childcare session can be shorter than 2.5 hours using the funded hours.
- No childcare sessions can take place before 7.00 am or after 7.00 pm.
- The funding is traditionally over ‘term-time’ or 38 weeks a year. Funding can, however, be stretched across a 52-week period, which, as a result, reduces the number of funded hours per week. This is something you should discuss with the parent.
- Your invoices should clearly state which hours are funded and which are ‘normal’ hours
- With funded hours, don’t hesitate to keep asking parents for voluntary payments towards meals, nappies, etc.
- The scheme can be used for a maximum of two different providers at one time.
What Are the Eligibility Criteria For the 15 Hours Free Childcare?
In order to offer the 15 hours-free childcare scheme, you must meet one of the following criteria:
- Registered childminder, nanny, playscheme, nursery or club
- Childminder or nanny with a registered childminder agency or childcare agency
- Registered school
- Home care worker working for a registered home care agency
To qualify for 15 hours, the parents must live in England and receive one of the following benefits:
- Income support.
- Income-based Jobseeker’s Allowance (ISA).
- Income-related Employment and Support Allowance (ESA).
- Universal Credit (where household income is £15,400 a year or less after tax, not including benefit payments).
- Child Tax Credit, Working Tax Credit (or both), and the household’s income is £16,190 a year or less before tax.
- The guaranteed element of State Pension Credit.
- The Working Tax Credit 4-week run on (the payment you get when you stop qualifying for Working Tax Credit).
They can also be eligible for 15 hours if any of the following apply:
- Are in receipt of a Disability Living Allowance.
- Are looked after by a local authority (in local authority care or provided with accommodation by a local authority for a continuous period of more than 24 hours).
- Are no longer looked after by a local authority as a result of an adoption order, a special guardianship order, or a child arrangements order.
- Have an Education, Health and Care (EHC) Plan.
Eligibility for entitlement begins at the start of the term following the child’s second birthday.
There are different schemes in Scotland, different schemes in Wales and different schemes in Northern Ireland.
How Do I Offer the Free Childcare For Two-Year-Olds Scheme?
As a childminder, to offer this scheme you will need to first create an account on your Local Authority’s Early Education Portal and complete the Provider Agreement. Once registered, your Local Authority will advertise you as a childminder that offers this scheme, meaning parents will be able to find you easily.
You will need to provide your Local Authority with the estimated number of two-year-olds in your place of work, followed by the actual number later in the term to receive the funding.
A parent can register for the scheme by contacting their Local Council or going directly online to their Local Council website. A code will instantly tell them if they are eligible for the scheme. Parents can check their eligibility using this Government tool. Alternatively, you can opt to do an assisted application by which you and the parent complete the registration together.
How much funding can I expect to receive?
A childminder will receive around £4 per hour (depending on the Local Education Authority’s allocation).
*Update*
In the Spring 2023 Budget, the Government announced it would be expanding the 30 hours free childcare entitlement. The entitlement would be accessible for working families with children from the age of nine months to the age they start school.
The Government announced it would be rolled out in stages:
- All working parents with two-year-old children will be able to access 15 hours a week from April 2024
- All working parents with children aged nine months to three years will be able to access 15 hours a week from September 2024
- All working parents with children aged nine months to three years can access the full 30 hours free childcare per week from September 2025
The eligibility will match the existing entitlement for 30 hours childcare, which is set out in the Library constituency casework article on childcare for three and four-year-olds.
At Yoopies, we know your childminding business is important to you. That’s why we are here every step of the way of your registration to ensure you are able to get your business up and running with ease. Once you have your business up and running, you are able to use the Yoopies for free to find your first clients simply and quickly. With our handy postcode tool, you’ll be able to easily get in touch with families in need of a childminder near you.