Supporting childcare providers and parents in navigating funded early years care in England can be challenging. Funding has expanded in recent years, particularly in September 2025, when up to 30 hours became available for working parents of children aged 9 months to 4 years.
While this is a huge benefit, the rules around funding can be confusing. Misunderstandings about eligibility, costs, and deadlines are becoming more common, and they can delay access to this vital care – something no one wants!
In this blog, we highlight the most common misunderstandings about early years funding and share tips to make it easier for everyone to navigate.
“All children automatically get funded hours from 9 months old”
The misunderstanding
Many parents think children automatically get funded childcare as soon as they turn 9 months old.
The reality
Funding does not start on the day they turn 9 months, but from the term after. For example, a child who turns 9 months in February becomes eligible at the start of the spring term in April.
Parents must meet the working-parent criteria and check their eligibility using the government’s eligibility checker. They must also apply for a funding code before the deadline, usually the day before the new term starts.
How to avoid confusion
Providers should explain clearly when funded hours start. Parents should apply early to secure their funding and avoid delays.
“30 funded hours covers a full week of childcare all year round”
The misunderstanding
Parents may think “the funded hours are available every week all year round” and expect their weekly funded hours to cover the entire year.
The reality
The entitlement is up to 30 hours per week for 38 weeks a year, usually term time. Some providers offer ‘stretched’ funding across more weeks, but this reduces the weekly number of funded hours.
How to avoid confusion
Providers should clearly explain how funded hours are applied in their setting, including whether funding is stretched or term-time only.
“Funded childcare is completely free and covers everything”
The misunderstanding
Parents may expect funded hours to cover the full cost of childcare, meaning no additional costs apply.
The reality
Government funding covers EYFS (Early Years Foundation Stage) provision and the childcare itself. It does not cover extras such as meals, snacks, consumables, additional or specialised activities, or trips.
Providers can charge for these extras, but the charges must be optional and cannot be a condition of accessing a funded place.
How to avoid confusion
Providers should state any additional charges up front and be prepared to explain them, so parents understand exactly what is funded and what costs extra.
“Once you have a funding code, you don’t need to do anything else”
The misunderstanding
Some parents believe their eligibility code lasts indefinitely.
The reality
Eligibility for working-parent entitlements must be reconfirmed every three months through the parent’s childcare account. If reconfirmation is missed, funding can stop temporarily.
How to avoid confusion
Providers can support families by reminding them of reconfirmation deadlines, especially around term changes.
“All 3- and 4-year-olds automatically get 30 funded hours”
The misunderstanding
Parents often think 30 hours is universal for all children from 9 months to 4 years old.
The reality
All 3- and 4-year-olds are entitled to 15 universal funded hours. The additional 15 hours, making 30, are only available to eligible working parents.
How to avoid confusion
Clearly separate universal entitlements from working-parent entitlements when explaining funding to families.
“All childcare providers have to offer funded hours”
The misunderstanding
Parents often assume that every nursery, childminder, or preschool must accept funded hours.
The reality
Providers must be approved by their local authority and choose to offer funded places. Some settings may not deliver funded childcare at all, or may only offer certain entitlements.
How to avoid confusion
Parents should always ask providers whether they offer funded hours before securing a place. Providers should clearly state which funding they accept, if any.
“You can only use Tax-Free Childcare or funded hours, not both”
The misunderstanding
Many parents think they must choose between Tax-Free Childcare and funded hours.
The reality
Tax-Free Childcare can be used alongside funded hours to help pay for costs not covered by funding, such as consumables, meals, or additional hours. For every £8 a parent pays in, the government adds £2, giving a 20% saving on these extra costs.
How to avoid confusion
Parents should set up a Tax-Free Childcare account early and use it to reduce any additional childcare costs.
“Funded hours can be used with grandparents, relatives or nannies"
The misunderstanding
Some families believe funded hours can be used for care provided by relatives, nannies, or babysitters.
The reality
Funded hours can only be used with registered providers, such as childminders, nurseries, and pre-schools. They cannot be used to pay relatives or ‘informal’ carers.
How to avoid confusion
Parents should check early that their childcare arrangements meet funding requirements.
“I can claim funded hours for my own child or a relative's child if I’m a childminder”
The misunderstanding
Some childcare providers, particularly childminders, believe they can claim funded hours for their own child if they are caring for them alongside other children in their setting.
The reality
Funded childcare can only be claimed for care that legally counts as childcare. Care provided by a parent or a close relative, including a childminder caring for their own child, does not count as childcare for funding purposes. This means providers cannot claim funded hours for their own children, even if they are registered and offering funded places to other families.
How to avoid confusion
Childminders should be clear that funded hours can only be claimed for unrelated children in their care. Including this information in funding policies can help avoid accidental over-claims and potential repayments to the local authority
“If parents earn too much, they don’t get any childcare support”
The misunderstanding
Some parents assume higher earners are excluded from all help.
The reality
Working parents with an adjusted net income of up to £100,000 per year can still be eligible for funded hours. Other schemes, such as Tax-Free Childcare, may also be available alongside funded hours.
Final Thoughts...
Early years funding is designed to support both families and providers, but it relies on clear understanding and communication. Most issues don’t come from the funding itself, but from misunderstandings about how it works in practice.
By checking eligibility early, explaining funding clearly, and being transparent about charges and how hours are delivered, providers and parents can work together to avoid confusion and delays.
Clear conversations at the start really do save stress later for everyone involved!
