England's funded childcare entitlement is one of the most significant financial benefits available to families with young children — but it comes with choices that can be confusing. One of the most important is whether to take your funded hours as a term-time offer or a stretched offer.
Understanding the difference can save families money, reduce childcare disruption during school holidays, and help you make the most of the entitlement your child is eligible for.
The funded childcare entitlement in England does not cover costs such as meals, consumables, nappies or additional hours beyond the funded allocation. Providers are permitted to charge for these extras separately. Always ask your provider for a full breakdown of what the funding does and does not cover.
What Are Funded Childcare Hours?
The Government provides funded (free at the point of use) childcare hours for eligible children in England. The amount of funding depends on your child's age and your household's eligibility:
- Universal 15 hours per week — available to all 3 and 4 year olds in England, regardless of parental income or employment status
- 30 hours per week — available to 3 and 4 year olds whose parents or carers both work (subject to income limits)
- Funded hours for younger children — since 2024, the Government has been phasing in funded hours for eligible working parents of children from 9 months old, with eligibility expanding in stages
In all cases, the entitlement is expressed as a total number of hours per year — and it is at this point that the choice between term-time and stretched offers becomes relevant.
The Term-Time Offer: How It Works
Under the term-time offer, you take your full weekly entitlement during the school term weeks only — typically around 38 weeks per year. This means:
- For the 15-hour entitlement: 15 hours × 38 weeks = 570 funded hours per year
- For the 30-hour entitlement: 30 hours × 38 weeks = 1,140 funded hours per year
During school holiday periods — half terms, Christmas, Easter and summer — the funded hours do not apply. If your child attends nursery during the holidays, you pay the full commercial rate for those weeks.
Who Is the Term-Time Offer Best For?
The term-time offer tends to suit families who:
- Do not need childcare during school holidays (for example, a parent is at home during those periods)
- Want to maximise the weekly hours available during term time
- Can absorb holiday childcare costs separately, or use informal arrangements with family
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The Stretched Offer: How It Works
Under the stretched offer, your total annual funded hours remain the same — but they are spread across more weeks of the year, usually up to 52 weeks. Because the total cannot increase, this means you receive fewer hours per week.
For example:
| Entitlement | Term-time (38 wks) | Stretched (52 wks) | Stretched (48 wks) |
|---|---|---|---|
| 15-hour entitlement | 15 hrs/week | ~11 hrs/week | ~12 hrs/week |
| 30-hour entitlement | 30 hrs/week | ~22 hrs/week | ~24 hrs/week |
The exact number of weeks across which the hours are stretched varies by provider — not all nurseries offer a full 52-week stretch. Some spread hours over 48 weeks; others offer 44. Always confirm the specific arrangement with your provider before committing.
Who Is the Stretched Offer Best For?
The stretched offer tends to suit families who:
- Need consistent, year-round childcare because both parents work throughout the year
- Want to avoid significant out-of-pocket childcare costs during holiday periods
- Are happy to receive fewer hours per week in exchange for more even coverage
- Have a provider who supports and facilitates the stretched arrangement
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Key Differences at a Glance
| Feature | Term-Time Offer | Stretched Offer |
|---|---|---|
| Weeks covered | ~38 term weeks | Up to 52 weeks (varies by provider) |
| Weekly hours (15-hr entitlement) | 15 hrs/week | ~11 hrs/week |
| Weekly hours (30-hr entitlement) | 30 hrs/week | ~22 hrs/week |
| Holiday coverage | No — full cost applies | Yes — funded hours available |
| Total annual funded hours | Same | Same |
| Best for | Parents at home in holidays | Year-round working parents |
| Provider availability | Widely available | Not all providers offer this |
Does Every Nursery Offer Both Options?
No. Whether a stretched offer is available depends on your individual provider. Childminders and private nurseries that operate year-round are most likely to offer the stretched arrangement. School nursery classes, by contrast, often operate only during term time and cannot stretch the entitlement across holidays.
Before choosing a provider, ask explicitly:
- Do you offer a stretched option?
- Over how many weeks would my hours be spread?
- Can I switch between term-time and stretched arrangements at any point?
If you qualify for the 30-hour entitlement, you will need an eligibility code from HMRC, which must be provided to your childcare provider. Codes need to be reconfirmed regularly to maintain the entitlement. For more on this, see the guide on how to apply for a childcare eligibility code.
Can You Combine Funded Hours With Other Support?
Yes, in some circumstances. Families using funded childcare hours may also be eligible for Tax-Free Childcare — a government scheme where the Government tops up savings held in a dedicated account to help pay for registered childcare costs beyond the funded entitlement. For a detailed comparison of how these two forms of support interact, see the guide on Tax-Free Childcare and funded hours.
You can also use funded hours at more than one provider — for example, splitting 15 hours between a nursery and a childminder — as long as the total used does not exceed your entitlement. Both providers would need to be informed and would each claim a portion of the funding.
The 15-Hour Universal Entitlement: A Reminder
All 3 and 4 year olds in England — regardless of whether their parents work — are entitled to the universal 15 funded hours per week during term time. This does not require an eligibility code. You simply register with a provider who is approved to offer funded places and confirm your child's details.
For a full explanation of what this entitlement covers and how it applies to different family situations, see the dedicated guide on the universal 15 hours for three- and four-year-olds.
Frequently Asked Questions
Can I change from a term-time offer to a stretched offer partway through the year?
This depends on your provider. Some nurseries will allow you to switch arrangements at the start of a new term; others commit to an arrangement at the beginning of the year and cannot easily change it. Speak to your provider's manager and clarify the flexibility before signing any agreement. It is also worth checking whether a switch would affect your total remaining funded hours for the year.
Does the stretched offer reduce the quality or amount of childcare my child receives?
No — the total number of funded hours your child receives over the year is identical whichever option you choose. The stretched offer simply spreads those same hours more evenly. The quality of care is unaffected by the administrative arrangement between you, the provider and the local authority.
What happens to funded hours during bank holidays?
Bank holidays are typically included within the weeks counted by the provider, meaning no additional funded hours are added to compensate for bank holiday closures. Some providers may offer a small number of additional days to make up for bank holidays, but this is at the provider's discretion. Check your provider's terms and conditions.
Can I use funded hours at a childminder rather than a nursery?
Yes. Ofsted-registered childminders in England can offer funded childcare hours, including the stretched offer. This makes childminders a particularly flexible option for working parents who need year-round, consistent childcare. Your childminder must be registered with Ofsted and signed up with your local authority to claim the funding on your behalf.
What if my child turns 3 partway through a term?
Funded hours begin from the start of the term following your child's third birthday. If your child turns 3 in January, they become eligible from the start of the spring term (typically early January in most local authorities, though the exact date varies). If they turn 3 in August, they are eligible from September. Contact your local authority early to confirm the exact start date for your area.
Are there income limits for the universal 15 hours?
No. The universal 15-hour entitlement for 3 and 4 year olds has no income requirement — it is available to all families regardless of whether parents work or their household income. Income thresholds apply only to the additional 15 hours (the 30-hour entitlement) and to funded hours for children under 3, which require both parents to be working within certain income limits.
