Free Childcare Funding Explained: What Parents Need to Know (and How It Works at Kidz Kabin)

A clear, honest guide to funded childcare, and how Kidz Kabin makes it work for families

Choosing childcare is about trust, values and the experience your child will have during some of the most formative years of their life, but it’s also about ensuring availability and cost that works for you as a family.

Government funding for early years childcare is often described as “free”, but for many parents, it can feel confusing, inconsistent and difficult to navigate. Parents are often left asking: Is it really free? What’s included? Why does it vary between nurseries? And how does funding affect my child’s day-to-day experience?

What funding covers, how it can be used and what the experience looks like in practice can vary hugely between settings. At Kidz Kabin, we believe families deserve clarity and flexibility alongside high-quality, child-centred care. Funding should support children’s development and parents’ wellbeing rather than create added stress.

This guide explains how nursery funding works, what makes Kidz Kabin’s approach different and why many families choose to remain in a private nursery setting until school age.

At Kidz Kabin, we believe funding should support families without compromising quality. As we explore in our guide to choosing the right nursery for your child, what matters most isn’t just what is offered, but how it’s delivered, emotionally, developmentally and practically.

TL;DR – Free Childcare Funding at a Glance

Free childcare funding can make a real difference for families, but how it works and what it actually looks like day-to-day varies between nurseries.

Here’s what parents need to know:

• Funding is term-time only (38 weeks) and must be applied for through Childcare Choices on GOV.UK

• Eligibility isn’t automatic. Parents must apply for a childcare code and reconfirm every 3 months

• Funding starts from the term after your child becomes eligible, not immediately

• How funded hours are delivered varies widely between settings, affecting flexibility, routines and additional costs

• Funded hours cover time, not meals or enrichment, which is why charges may apply

• Many families choose to use funding in private nurseries for smaller ratios, consistency and a more personalised approach

  
  

At Kidz Kabin, funded childcare is delivered with clarity, flexibility and no hidden charges, ensuring children receive the same warmth, routine and high-quality care as any other attendance pattern.

How Funded Hours Vary

Funded childcare is not a one-size-fits-all experience. While the entitlement itself is set nationally, how funded hours are delivered varies widely between settings, from session restrictions, to additional charges, to limits on flexibility.

Some nurseries restrict which days or hours funding can be used. Others require families to purchase additional sessions alongside funded ones. In many cases, parents aren’t fully aware of additional charges until later.

What matters most is whether funding is available, but also how it is implemented day to day and whether it supports children’s development as well as family life.

At Kidz Kabin, transparency and flexibility are central. We work closely with families to ensure funded hours are delivered in a way that supports consistency, routine and emotional security for children.

Understanding the 15 and 30 Hours Free Childcare

The 15 Hours Free Childcare: Who Is It For?

All children are entitled to 15 hours of funded childcare from the term after their third birthday. Additionally, some two-year-olds may qualify for 15 funded hours due to family circumstances, lower household income, medical needs or being part of a multiple birth.

At Kidz Kabin, these funded sessions are offered with the same care, attention and curriculum quality as any other attendance pattern. Children attending funded-only sessions are fully included in nursery life, routines and learning experiences.

The 30 Hours Free Childcare: What’s Different?

The 30-hour entitlement is available to eligible working families from the term after the child turns 9 months old and it can be used flexibly at Kidz Kabin.

Families can choose patterns that genuinely work for them, including full days or shorter sessions across the week, without being required to purchase additional non-funded hours.

This flexibility allows parents to return to work, manage family life and maintain routine without feeling pressured into arrangements that don’t suit their child.

Funding Eligibility

To access funded childcare, parents must apply for a childcare code through the government. This is done via the Childcare Choices service on GOV.UK.

This code confirms eligibility and must be shared with the nursery before funded hours can be applied.

A few important things parents need to know:

Funding is term-time only (38 weeks per year).

Children who attend nursery all year can still use funded hours, but those hours are spread across 38 weeks, and not the full year. How this looks in practice varies by setting, which is why clarity is so important.

Funding is not automatic.

Parents must apply for their code and meet eligibility criteria. For working families, this generally means:

• Both parents (or the sole parent in a single-parent household) are working

• Each parent earns below £100,000 per year

• Minimum weekly earnings apply

Eligibility must be reconfirmed every three months. If this isn’t done on time, funding can stop.

When does funding start?

Funding does not begin immediately. It begins from the term after a child becomes eligible. Applications must be submitted online, https://www.gov.uk/apply-free-childcare-if-youre-working, and by the government’s termly deadlines:

• 31 August

• 31 December

• 31 March

Example:

If a child turns 9 months old on the 1st of September, parents must apply for their funding code by the 31st of December. If approved, funding will start from the spring term (January). In our experience, we would always recommend applying early, to avoid any potential issues which may result in not receiving your funding on time. If we take the example above, we would advise applying by the beginning of December rather than leaving it too late.

Tax-Free Childcare

Alongside funded hours, families may also choose to open a Tax-Free Childcare account. For every £8 a parent pays into the account, the government adds £2, effectively covering up to 20% of childcare costs, capped annually.

This can be used alongside funded hours and is particularly helpful for covering meals or additional hours.

Common Myths About Free Childcare Funding

A common misconception is that “free childcare” should look the same everywhere.

In reality, quality, ratios, flexibility, communication and enrichment vary significantly between settings. What matters most is transparency and understanding what is included, what is optional and how funding supports your child’s experience.

As with settling-in, play-based learning and developmental milestones, funding works best when it supports the child. You may find it helpful to explore our guides on settling in at nursery, learning through play and EYFS milestones.

How Funded Hours Work at Kidz Kabin

At Kidz Kabin, we aim to make funded childcare clear, flexible and genuinely accessible. Below is how funding works across different age groups within our settings.

9 Months – 2 Years (Working Families)

• Eligible from the term after the child turns 9 months

• Parents must apply via Childcare Choices before term deadlines

• 30 funded hours available

• No meal charges

• No additional compulsory charges

2-Year-Olds: Two Funding Routes

Option 1: FEE2 (Working Families)

• 30 funded hours

• Eligible from the term after the child’s 2nd birthday

• Funding must be applied for before term deadlines

• Children attend our Yellow and Green Rooms

Meal charges apply depending on session pattern:

• Using 30 hours across 3 full days: £20 per day

• Attending 8am–2pm or 12pm–6pm: £15 per day

Option 2: FEE2 (Local Authority Funded Families)

• 15 hours fully funded

• Approved via the local borough

• Parents must apply directly to the borough

• The nursery must receive the eligibility confirmation letter before the child can start

Meal charge: £5 per day, if choosing to attend 5 hours per day over 3 days.

3–5 Years

Universal 15 Hours (All Children)

• Available to every child from the term after their 3rd birthday

• Session options:

o 12pm–3pm or 1pm–4pm: £3 snack charge per day

o 5-hour sessions across 3 days (8am–1pm or 1pm–6pm): £10 meal charge per day

30 Hours (FEE3 – Working Families)

• Parents must apply for and maintain a valid 30 hours code

• Extends the universal 15 hours to a total of 30 funded hours

• Session patterns and charges align with those outlined on our Funded Places page

We are transparent about costs and flexible in how hours are used. Unlike many settings, we do not restrict which days funded hours can be used, nor do we require families to purchase additional non-funded sessions alongside funding. We work with parents to create patterns that suit both the child and the family.

Optional extracurricular activities (£10 per week) include Spanish, music, sports and yoga, all delivered during the morning. Families may opt out and choose afternoon sessions if preferred.

Why Many Families Choose a Private Nursery for Funded Places

School nurseries and private nurseries may follow the same EYFS framework, but how it is delivered can look very different.

At Kidz Kabin, children’s interests lead everything. Activities are adapted, repeated or extended based on what children are genuinely engaged in. This responsive, relationship-led approach allows learning to deepen naturally rather than being rushed or rotated.

Consistency and routine are central to our practice. While some settings operate largely on free-flow models, we find that many young children thrive when their day has a clear, predictable rhythm. This sense of security supports emotional regulation, focus and confidence, which are especially important during the preschool years.

Our Green Rooms are highly proactive in supporting school readiness through meaningful, developmentally appropriate learning. Children who show interest in early literacy are supported through our Rocket Readers programme, alongside phonics, letter formation and early maths. This is always interest-led, never pressured, and supported by experienced practitioners who know each child well.

Learning also extends beyond the nursery walls, with regular trips to local parks, woodland and forest school activities led by our trained forest school teacher, ensuring children benefit from movement, nature and hands-on exploration alongside classroom-based learning.

Although formal paperwork is no longer required nationally for this age group, we continue to carry out full developmental assessments every 12 weeks, focused observations six weeks into each term and ongoing snapshots throughout the year via our secure parent app. Parents also receive verbal feedback daily and attend parent evenings twice a year. This ensures no child is overlooked.

Why Ratios Matter (More Than Parents Realise)

One of the most significant differences parents notice between private and school nurseries is staffing.

At Kidz Kabin, we operate with consistently higher staff-to-child ratios than statutory minimums:

• 0–2 years: 1 adult to 3 children

• 2–3 years: 1 adult : 4 children (legal maximum is 1:5)

• 3–5 years: 1 adult : 6 children (legal maximum is 1:8)

Smaller ratios allow practitioners to truly know each child, respond to individual needs and build strong relationships, which is something that can be challenging in larger, more impersonal settings. Smaller ratios also create a calmer, more personal experience where children are seen and supported as individuals, and not one of many.

Why Meal Charges and Enrichment Matter

Funded childcare covers hours. It does not cover the full cost of delivering high-quality, early years education.

At Kidz Kabin, meal charges reflect freshly prepared, homecooked food and nutritious snacks served throughout the day. Mealtimes are calm, social moments that support emotional wellbeing, independence and healthy eating habits.

We also offer optional enrichment activities led by external professionals who are familiar faces within our setting. These include Spanish, music, sports and yoga, all delivered in small groups and carefully woven into the nursery day.

These experiences support language development, physical confidence, emotional regulation and creativity in ways that go beyond what many school nursery settings are able to offer.

Families can opt out if preferred, but many choose to participate because they see the impact on their child’s confidence and enjoyment.

Is Funded Childcare Really Free?

In short, yes, it can be.

At Kidz Kabin, funded entitlements are genuinely free for the hours covered. Any additional costs are clearly explained upfront, allowing families to make informed decisions without hidden surprises.

We believe funding should support families during a challenging economic climate, and not create barriers to accessing high-quality care.

A Round Up of Thoughts

Funding is indeed about hours and the cost of childcare, but it’s also about the experience.

Children deserve warmth, consistency, responsive care and environments that nurture curiosity and confidence. Parents deserve flexibility, clarity and reassurance.

At Kidz Kabin, we are proud to offer funded places that don’t compromise on quality, relationships or child-centred practice.

When deciding how to use funded hours, parents are really deciding what kind of early years experience they would like for their child. As we explore further in our guide to choosing the right nursery, the most important factors are relationships, routine, responsiveness and trust.