Understanding the new childcare allowances – update September 2025
Further to our blog post, ‘understanding the new childcare allowance’ back in September 2023, we have updated our article following the role out of these changes on 1 September 2025.
As of 1st September 2025, working parents of children aged 9 months to 4 years old can now access 30 hours of free childcare per week, helping families save thousands and making it easier for parents to stay in work.
This change, announced in the Spring Budget, and now fully rolled out, is a game-changer for many households juggling work and childcare costs.
What’s new?
Previously, eligible working parents could claim 15 hours of free childcare for children under the age of two. However, from this month, the support has doubled to 30 hours per week, covering children from 9 months old until they start school.
It is also important to note that the 30 hours per week of free childcare only applies to 38 weeks of the year, which typically aligns with school term times. That means if your child attends childcare all year round, you may need to pay for additional weeks outside of term time. Some providers offer option to stretch the hours across the full year – this would work out to around 22 hours per week over 52 weeks, so it’s worth checking with them to see what’s available.
Why this matters?
Childcare is one of the biggest expenses for working families. This expansion could save parents up to £7,500 a year per child. It’s not just about saving money – it’s also about giving parents, especially mums, the freedom to return to work or increase their hours without worrying about childcare costs.
Who is eligible?
To qualify for the 30 hours, you (and your partner, if you have one) must:
- Be working at least 16 hours a week and earn at least National Minimum Wage (around £195 per week or £10,158 a year).
- Earn less than £100,000 in adjusted net income.
- Be employed, self-employed, or starting a new job.
If you’re not eligible for the full 30 hours, you may still qualify for 15 hours through other schemes, especially if you’re on Universal Credit or your child has additional needs.
How to apply
You can apply online through the Gov.UK childcare portal. If your child is at least 23 weeks old, you can start the application process. Just make sure to apply before the term starts – the deadline for January 2026 place is 31 December 2025.
Once approved, you will receive a code to give your childcare provider. Don’t forget to reconfirm your eligibility every three months to keep receiving the support.
If you were already receiving 15 hours, you do not need to reapply, just reconfirm your eligibility as usual and your childcare provider will update your attendance pattern to reflect the new hours.
A few things to keep in mind
While the childcare hours are free, you might still need to pay for extras like:
- Meals
- Nappies
- Additional activities (e.g. trips)
- Extra hours beyond the funded entitlement
Your provider should not charge you any top-up fees for the funded hours, and registration fees must be refundable.
This latest update marks a huge milestone in childcare support for working families in England. Whether you’re returning to work or looking to increase your hours, the expanded offer gives you more flexibility and financial breathing room.
…What about Scotland?
If you’re a parent living in Scotland, the rules are a little different. Scotland offers up to 1,140 hours of funded early learning and childcare per year, which works out around 30 hours per week during term time. However, this support is currently available only for:
- All 3 and 4 year olds regardless of parental working status.
- Eligible 2 year olds (typically those from lower income households or with additional needs).
Unlike in England, the September 2025 expansion to include children from 9 months old does not apply in Scotland. The Scottish Government is exploring further expansion, but for now, families should check with their local authority or www.parentclub.scot for latest updates and eligibility guidance.
