Government Funding, Tax Free and Vouchers
Funded Places
Funded Early Education at Excel Child Care Services
Funding Changes to Early Years Childcare
September 2024
From September 2024, children aged 9 months to 2 years will be eligible for 15 hours of free childcare per week, funded by the government. This funding is averaged across 38 weeks of the year and applies to providers offering funded places.
September 2025
From September 2025, working parents of children aged 9 months to 5 years will benefit from an increase in free childcare to 30 hours per week, also averaged across 38 weeks.
What Is ‘Stretched’ Funding?
Government funding for free childcare offers equates to:
- 15-hour offer: 570 hours per year.
- 30-hour offer: 1140 hours per year.
This funding is ‘stretched’ over 52 weeks.
What Is the Stretched Funding Offer?
The stretched funding option allows our parents to spread their child’s free nursery hours over a longer period, rather than using the standard 15 or 30 hours per week over 38 weeks. For example, instead of 15 hours per week, you will receive approx.11 hours per week, stretched across the entire year.
Why Is Stretched Funding Beneficial?
For Your Child:
- Provides consistency and routine throughout the year, avoiding long breaks like summer holidays when children cannot attend.
- Encourages better social development, confidence, and relationship-building with peers and staff.
- Ensures continuous learning opportunities, preparing your child for a smooth transition to school.
For Parents:
- Offers the flexibility to spread nursery costs evenly throughout the year, avoiding high fees during holiday periods.
- Allows you time for yourself or one-on-one time with other children, even if you are not working.
This flexible approach ensures that your baby/child enjoys a consistent routine while you benefit from a childcare schedule that aligns with your family’s unique lifestyle and commitments.
Remember: Nurseries can charge for additional services beyond childcare, such as meals, snacks, trips, or extra activities like baby yoga, to offset costs.
Tax Free Childcare
Tax-Free Childcare Overview
As an Ofsted registered nursery, we are proud to accept tax-free childcare payments, making it easier for families to manage the cost of childcare.
What is Tax-Free Childcare?
Tax-Free Childcare is a government initiative designed to support working parents with the expense of childcare.
Here’s how it works:
- You set up an online account via the official Government website (GOV.UK).
- You can pay into this account to cover childcare costs with an Ofsted registered provider, like our nursery.
- For every 80p you contribute, the Government will add an extra 20p.
This means you’ll benefit from a 20% top-up – the equivalent of the basic tax rate – which is how the scheme gets its name.
How Much Can You Save?
The Government will contribute up to 20% of childcare costs, up to a total of £10,000 per year per child. This adds up to a maximum of:
- £2,000 per child, per year for standard childcare.
- £4,000 per child, per year for children with disabilities.
By using this scheme, you can make substantial savings while ensuring your child receives high-quality care in a nurturing and safe environment.
If you have any questions about Tax-Free Childcare or need help setting up your account, feel free to get in touch with us – we’re here to help
Vouchers
Key Differences Between the old and new Schemes
| Childcare Vouchers (Closed to new applicants) | Tax-Free Childcare (Open to all eligible families) |
|---|---|
| Administered by your employer (not all employers offered this scheme). | Administered by the government and does not involve your employer. |
| Available for parents with children under 16 (or 17 if disabled). | Available for parents with children under 12 (or 17 if disabled). |
| Savings depend on your tax bracket and when you joined the scheme. | Flat 20% saving on childcare costs, with a maximum government top-up of £2,000 per year per child. |
| Can be used alongside Tax Credits or Universal Credit, though this is often less beneficial. | Cannot be used if receiving Tax Credits or Universal Credit. Applying ends any existing Tax Credit entitlement. |
| No longer open to new applicants after October 2018. | Available to new applicants for the foreseeable future. |
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