2025 Childcare Funding: 9 Common Myths Every Parent Still Believes (Corrected With Facts)
Understanding 2025 childcare funding has become one of the biggest challenges for UK parents. The rollout has been huge — 9-month funding, 2-year funding expansion, changes to eligibility rules, HMRC reconfirmations, and nurseries applying different models of “free hours.”
This has created a perfect storm of confusion. Parents hear one thing from a friend, something else from an online group, and then receive completely different guidance from their nursery manager.
This guide explains the 9 most common childcare funding myths, based on real questions parents ask, and corrects them using verified data from GOV.UK, Ofsted, and trusted UK research bodies.
If you’re also choosing a nursery right now, you may find these guides helpful:
- UK Nursery Guide 2026: Costs, Ratings & How to Choose
- How Much Are Childcare Costs in the UK?
- 5 Things to Watch When Choosing the Right Nursery
Myth 1: “Every 9-month-old automatically gets 15 free childcare hours.”
(2025 childcare funding myth that confuses most parents)
The idea that all babies aged 9 months get 15 hours is everywhere — but it’s not correct.
The fact: Only working parents qualify for 15 hours of free childcare from 9 months old.
Eligibility requires a valid HMRC code.
You can apply through the official Free Childcare for Working Parents portal.
According to the Department for Education, only an estimated 70% of families will meet the earnings criteria for the new 9-month offer — meaning it is not universal.
Myth 2: “You can use your free childcare hours at any nursery you want.”
A very common misunderstanding is that all nurseries must accept funded hours.
The fact: A nursery must be formally registered as a funded provider with its local authority.
Some nurseries:
- Do not offer funding at all
- Limit funded places
- Only allow funding on certain days
- Only offer 15 hours but not 30 hours
Parents can verify a nursery’s official status on the Ofsted Early Years Register:
https://www.gov.uk/guidance/early-years-providers-register-as-a-childcare-provider
Myth 3: “Free childcare hours make your nursery place completely free.”
Funding only covers the basic childcare entitlement. Nurseries can add charges for meals, snacks, nappies, consumables, extended sessions, or specialist activities. These additional fees are permitted because government funding does not cover the full cost of high-quality early years care.
They may also charge for:
- Meals
- Snacks
- Nappies / wipes
- Consumables
- Extended hours
- Specialist activities
For a deeper breakdown of typical nursery fee structures, see:
How Much Are Childcare Costs in the UK?
Myth 4: “You can apply whenever you want — funded places won’t run out.”
(2025 childcare funding availability varies by region)
Unfortunately, the spike in demand has not been matched by an equal rise in nursery spaces.
Many UK regions now have significant childcare shortages, especially in:
- London boroughs
- Manchester and Birmingham
- Bristol
- Surrey and Hertfordshire
Waiting lists often open months (or even years) before children begin. Some nurseries only release a handful of funded places per term, making early applications essential. Parents applying late are more likely to be placed on reserve lists or offered limited session times.
For guidance on comparing nurseries in high-demand areas, you can use our detailed 2026 guide:
UK Nursery Guide 2026
Myth 5: “All nurseries offer 30 hours free childcare for 3–4 year olds.”
(30 hours childcare funding myth still widely shared)
This is still misunderstood even though the 30-hour scheme launched in 2017.
The fact: the 15 universal hours are for everyone. But the additional 15 hours require parents to be:
- Working
- Within income bands
- HMRC-validated
Not all nurseries can — or want to — offer the full 30 hours due to funding gaps.
Some nurseries:
- Offer only 15
- Spread hours across the year (stretched)
- Allow 30 hours only for full-day bookings
Always ask about the delivery model.
Myth 6: “Funding starts on your child’s birthday.”
Parents often assume funding begins immediately when a child hits the age band.
The fact: Funding always begins at the start of the next school term:
- Birthdate in March → Funding starts in April
- Birthdate in May → Funding starts in September
- Birthdate in October → Funding starts in January
This rule applies to:
- 9-month funding
- 2-year funding
- 3–4-year funding
Myth 7: “You can use all your funded hours across multiple nurseries.”
Parents often think splitting is as simple as dividing hours.
The fact: Yes, it’s possible — but only if:
- Both providers agree
- Local authority systems allow it
- You stay within your total funded allocation
Some councils cap splits at two settings maximum.
If you’re comparing two nurseries and unsure, this guide may help: 5 Things to Watch When Choosing a Nursery
Myth 8: “You apply once a year.”
(HMRC reconfirmation requirement for childcare funding)
This misunderstanding causes real financial headaches for families.
The fact: Parents do not need to complete a full new application every term. HMRC instead requires families to reconfirm their details every three months. Missing this reconfirmation deadline can invalidate your code and may pause your funded hours until it’s renewed.
If reconfirmation is missed:
- Your code becomes invalid
- The nursery stops receiving funding
- You may be charged full fees until it’s corrected
Many nurseries now ask for screenshots proving your code is valid before each term.
Myth 9: “Every 3–4-year-old automatically gets 30 hours free childcare.”
This is the most common long-standing myth.
The fact: All children get 15 universal hours. The additional 15 hours depend on parents’ working status and income.
So the universal entitlement is 15 hours — not 30.
2025 Childcare Funding Table
| Age of Child | 2025 Funding Available | Parent Eligibility |
| 9 months+ | 15 hours free | Working parents |
| 2 years+ | 15 → 30 hours | Working parents |
| 3–4 years | 30 hours free childcare | All working parents (15 universal hours for all families) |
How to Check Exactly What You Qualify For (2025)
Here is the simplest way to confirm your eligibility:
- Use the official GOV.UK checker: https://www.gov.uk/free-childcare-if-working/apply-for-free-childcare-if-youre-working
- Ask your nursery to explain their funded hours model
- Join waitlists early
- Reconfirm your HMRC code every 3 months
- Compare nurseries using guides like: UK Nursery Guide 2026
Final Thoughts: The Truth About 2025 Childcare Funding
2025 childcare funding can feel overwhelming, especially with so much outdated information floating around. But understanding the real rules — who qualifies, when funding starts, what nurseries can charge, and how hours are delivered — makes the process far less stressful.
If you take away three things from this article, let them be:
- Always apply early
- Always check the nursery’s funding model
- Always reconfirm your code
FAQ: 2025 Childcare Funding in the UK
The UK government’s 2025 childcare funding scheme helps parents access free childcare hours at different ages. From 9 months, some working parents can claim 15 free hours, increasing to 30 for eligible families with 3–4-year-olds.
Under 2025 childcare funding, 15 free childcare hours from 9 months old are only available to working parents who meet the income rules. Typically, each parent must earn at least the minimum earnings threshold over a three-month period and not exceed the maximum income cap. You need to apply via GOV.UK, receive an eligibility code, and reconfirm it every three months in your childcare account to keep getting free childcare hours.
2025 childcare funding gives you free childcare hours, but your nursery place is not usually completely free. The government funding covers a set number of hours of basic childcare, not all the costs of running a nursery. Most nurseries still charge for meals, snacks, nappies, activities, and any hours outside the funded slot. This is why many parents still see monthly invoices even when they receive 15 or 30 free childcare hours.
To get your 2025 childcare funding code, you apply online through the official Free Childcare for Working Parents service on GOV.UK. You create or log into your childcare account, answer questions about your work and income, and once approved you receive a funding code. You then give this code to your nursery before the deadline for each term. You must log back into your childcare account every three months to reconfirm your details, or the code will expire and your free childcare hours may stop.
With 2025 childcare funding, free childcare hours start at the beginning of the next school term after your child reaches the qualifying age. Funding does not start on your child’s birthday. For example, if your child turns 2 in May, your funded hours usually start from the September term. If your child turns 3 in October, free childcare hours typically begin from the January term. This term-based rule applies to 9-month, 2-year and 3–4-year funding.
You can only use 30 hours free childcare at nurseries or childcare providers that are registered with the local authority as funded providers. Not every nursery offers the full 30 hours in the same way. Some nurseries only offer 15 hours, some stretch hours across the whole year, and some limit funded sessions to certain days or times. Always ask each nursery exactly how they deliver 2025 childcare funding before you sign a contract.
2025 childcare funding does allow you to split your free childcare hours between more than one nursery or childcare setting, but there are conditions. Both providers must agree, your local authority must support splitting hours, and your total use cannot exceed your funded entitlement. Some councils limit splitting to a maximum of two providers. Because it can be complex to administer, some nurseries prefer to keep your funded hours in a single setting.
You do not have to complete a full new application every term, but you must reconfirm your details every three months in your HMRC childcare account. This is part of the 2025 childcare funding rules for working parents. If you miss the reconfirmation deadline, your code can become invalid, your free childcare hours may stop, and your nursery might charge full fees until your code is re-approved.
Even with 15 or 30 hours free childcare, nurseries can still ask parents to pay for extras. Government funding often does not cover the full cost of high-quality early years education, so settings may charge for meals, snacks, nappies, trips, or extended sessions outside the funded hours. These extra fees are allowed under 2025 childcare funding guidance as long as they are clearly explained to parents and are not compulsory for accessing the funded hours alone.
