Funding

Early Years Entitlement

Universal Entitlement (15 hours)

Early years entitlement places for three and four year olds are available starting from the funding period after the child's third birthday. This is also available for two year olds who meet the eligibility criteria. For more information about the criteria for 2 year olds please see below.

• The early years entitlement gives your child a maximum of 570 hours each year. This will start the funding period after your child's third birthday and will last for 3 funding periods (equivalent to one year). 
• The maximum entitlement that can be claimed is 15 hours per week.  
• The minimum that can be claimed per day is 2.5 hours and the maximum per day is 10 hours. After the first 2.5 hours, the Early Years Entitlement can only be claimed for part hours in blocks of 15 minutes.   
• The next entitlement year, (starting the funding period after your child's fourth birthday) your child will receive another automatic allocation of 570 hours which will also last for another 3 funding periods. 
• Your child will become eligible for the early years entitlement in the funding period after your child's third birthday. If your child qualifies for funding for 2 year olds, then funding will be available from the date stated on the acceptance letter addressed to you.
  
  The funding periods are:
  Autumn         1 September to 31 December
  Spring           1 January to 31 March
  Summer       1 April to 31 August

Children who are 4 between 1 September and 31 December will be able to claim up to a maximum of 380 hours from 1 January to 31 August.  Children who are 4 between 1 January and 31 March will be able to claim up to a maximum of 237.5 hours from 1 April to 31 August. If the child doesn’t then go to a maintained, academy or free school from the following September, then any remaining hours from the 570 will be available to use.

To claim the Early Years Entitlement, the following information is needed:

• • a copy of your child's birth certificate or passport with a signed Child Registration Form
  • Early Years Entitlement parent declaration form completed every term.

If a birth certificate or passport is not available, other forms of legal documentation may be accepted. Please ask the administrator or contact the Entitlements Team for clarification. If these documents are not provided, the early years entitlement will not be paid and then you may be charged for the hours your child has accessed.

All fees charged relate to those hours or weeks not funded by the Early Years Entitlement. Parents will be required to pay for:

• • hours/weeks that exceed the Early Years Entitlement allowance

Funding for 2 Year Olds

Families with 2-year-old children who meet the criteria below can apply for funding for 2 year olds for up to 570 hours over the year. A maximum of 15 hours per week is available. Children become eligible in the funding period after their second birthday.

Families who receive any of the following are entitled to funding for 2 year olds: 

• Universal Credit (for children with a second birthday up to and including 31 December 2017)
• Universal Credit with an annual net income of less than £15,400 (for children with a second birthday after 31 December 2017)
• Income Support (IS) 
• Employment Support Allowance (Income Related) - not Contribution related 
• Income-based Job Seekers Allowance (IBJSA) - not Contribution based 
• Guaranteed Element of State Pension Credit 
• Support under Part VI of the Immigration and Asylum Act 1999 
• Child Tax Credit with an annual taxable income (as assessed by HM Revenue and Customs) of less than £16,190  
• Working Tax Credit with an annual taxable income (as assessed by HM Revenue and Customs) of less than £16,190 

Children are entitled if any of the following apply to them:

• Children who are 2 and receive Disability Living Allowance 
• Children who are 2 and have been adopted, or who have left care through special guardianship or child arrangement orders 
• Children who are 2 and have a Statement of Special Educational Needs or Education Health and Care Plan 
• Children who are 2 and are looked after by the local authority  

Evidence will only need to be sent without prior request if an application is made and the child qualifies by receiving Disability Living Allowance. In this case, a copy of the latest award letter from the Department for Work and Pensions will need to be submitted before the application can be processed. We recommend attaching the evidence to the form at the time of application. If you are submitting the application online, you can send a copy to freeschoolmeals@somerset.gov.uk or post a copy to Entitlements Team, County Hall, Taunton, TA1 4DY.

If you are successful, you will be notified in writing and we will send you a list of approved providers in your area. You will need to contact a provider from the list and check they have an available place for your child. The provider will ask to see the letter and a copy of your child's birth certificate or passport.

Important: Only providers on the list that the LA sends you are approved for funding for 2 year olds. If you wish to access a provider that is not on the list, please phone the Entitlements Team on 01823 357039 to see if your chosen provider can be funded. If it cannot be funded (only settings rated Good or Outstanding by Ofsted can take children that have been awarded funding for 2 year olds) or you access a provider that is not on the list without contacting us, you will have to pay. If you access more than the entitlement or any additional services at an approved provider, for example food, the provider will ask you to pay for these services.  

If you have been offered funding for 2 year olds, this will continue, even if your circumstances change, until your child can claim the Early Years Entitlement. More information is available on our Early Years Entitlement page, by phoning 0300 123 2224 or by emailing eyfunding@somerset.gov.uk.  

Working families Funding for 2 - 4 year olds 

The government has extended EYE to 30 hours a week (for up to 38 weeks a year). In Somerset, families can 'stretch' this entitlement to a maximum of 1140 hours a year. This is known as the ‘working families entitlement’. From September 2025 children from 9 months could be eligible.

Working parents of 2 – 4 year olds will need to meet the following criteria to be eligible for up to 30 hours a week funded childcare:

• Each earns or expects to earn the equivalent to 16 hours a week at the National Minimum or Living Wage over the coming three months. Please see GOV.UK for full eligibility criteria. 

This means you don't have to actually work 16 hours a week but earn at least the equivalent wage rates. 

*'Working' will include the employed and self-employed, and people on zero-hour contracts, and people away from work due to statutory sick pay, maternity, paternity or adoption leave, and where one parent is working and the other is in receipt of benefits due to caring responsibility or disability.

Who will not qualify  

Families will not meet the criteria when:

• either parent has an income of more than £100,000
• those that are not in paid work
• either parent is a non-EEA national and subject to immigration control (and has no recourse to public funds)  

How to apply 

You must apply for the extended entitlement hours through www.childcarechoices.gov.uk or by calling 0300 123 4097 if you do not have access to the internet.

If you have any problems applying for the extended entitlement, please ring the HMRC Helpline on 0300 123 4097.

You will need:

• your National Insurance Number, and your partner’s National Insurance Number (if applicable)
• child’s legal name and correct date of birth
• a government gateway account

What to do if you are successful

If you are successful, you will receive an 11-digit code to take directly to a participating childcare provider. They will need your:

• 11-digit eligibility code (begins with 500)
• child’s legal name and correct date of birth (please take birth certificate if possible)
• parent name and their National Insurance Number

We will then gain your written permission to verify the code with the Local Authority. Once the code is verified, a place can be confirmed for the funding period after your child becomes 3 years old.

Please present your code to all providers that you are accessing your universal and extended hours funding with. We will ask you to complete a parent’s declaration form to indicate who you are claiming the universal hours with, and the extended hours with. Please keep your copy for your records. 

When can you start using your extended entitlement hours?

To be able to use your extended entitlement you will need to have made a successful application and received a code by the deadlines given. If you miss the deadline you cannot use the extra funded hours, but you will still be able to use the universal hours. For example, if you do not apply and receive a code by 31 August deadline you cannot use your extra hours in September you will need to wait until 1 January. 

If you become eligible after the start of a funding period, you must wait until the following period to access your extended entitlement place.

Reconfirming your 30 hours and tax-free eligibility

 You will need to reconfirm you are still eligible for 30 hours and Tax- Free Childcare every three months, using your childcare service account, even if you have not yet taken up your place. It’s easy to do; if your details have not changed you just tick a box to confirm this. You’ll be reminded to do this 4 weeks before the reconfirmation deadline. It’s important you let HMRC know if your circumstances have changed, as they will be checked against other systems.

If you miss the reconfirmation deadline, you will receive a message telling you that your eligibility has lapsed. You should go into your childcare account and reconfirm. 
 

What happens if you reconfirm and are no longer eligible
If you are no longer eligible for 30 hours, you will enter a grace period where you may be able to retain your 30 hours childcare place for a short period of time. 

You will not be able to claim the extended entitlement if you start at a provider when you are already in your Grace Period.

If the grace period has expired and you have not met the eligibility criteria again, you would only be able to access the universal entitlement (570 hours per year). You can reapply for the extended hours if you meet the eligibility criteria again in the future. 

Your entitlement to the extended hours will stop

• when your child reaches compulsory school age
• when your child attends a reception place in a maintained school or academy