Childcare: Finance

It is the government’s ambition that all families have access to high-quality, affordable and flexible early education and care, giving every child the best start in life and delivering on our Plan for Change.

This working parent entitlement aims to support parents to return to work or to work more hours if they wish. To be eligible, parents must expect to earn the equivalent of 16 hours a week at National Minimum Wage (£195 per week/£10,158 per year in 2025/26), and less than £100,000 adjusted net income per year.

The government needs to use public funds in a way that provides value for money and considers it reasonable to target this funding at those individuals earning under £100,000 adjusted net income. Only a small proportion of parents (estimated to be 3.8% of parents of 3 and 4-year-olds in 2023/24) earn over the £100,000 adjusted net income maximum threshold. Further information can be found at the following address: https://explore-education-statistics.service.gov.uk/find-statistics/education-provision-children-under-5/2024.

Parents who earn over maximum income threshold can still claim the universal 15 hours for 3 and 4-year-olds in England.

The department has taken action to improve transparency and protect parents from additional charges on top of their entitlement, ensuring the funded hours remain accessible for parents. We updated our statutory guidance on 21 February 2025, reconfirming that there must be no mandatory additional charges associated with entitlement hours. The guidance also sets out the expectation that local authorities ensure providers have set out additional charges clearly and upfront on websites and invoices by January 2026.