Childcare Funding Reforms: What Changed and What Families Can Use Now

The childcare reforms that began in 2024 are no longer future promises. In 2026, the main practical question for parents is how the expanded free childcare hours, Tax-Free Childcare, and Universal Credit childcare support fit together.

What Changed

• Free childcare expanded for working parents. Eligible working parents in England can now get 30 hours per week for children aged 9 months to 4 years old, for 38 weeks of the year.
• Tax-Free Childcare continues alongside free hours. You can use Tax-Free Childcare to help pay eligible costs left after funded hours, as long as your provider is approved and signed up.
• Universal Credit remains separate. Universal Credit childcare costs can reimburse up to 85% of registered childcare costs if you are eligible, but you cannot receive Universal Credit and Tax-Free Childcare at the same time.

What Parents Should Check First

1. Ask your provider how funded hours are applied across the year, including whether they offer stretched hours.
2. Check the remaining invoice after free hours, meals, consumables, extra sessions, and holiday cover.
3. Use our Tax-Free Childcare calculator on the remaining eligible bill, not the bill before funded hours.
4. If you receive Universal Credit, compare your Universal Credit childcare support before applying for Tax-Free Childcare.

Related Guides

For the current practical detail, read how to use free childcare hours with Tax-Free Childcare, Tax-Free Childcare vs Universal Credit childcare, and approved childcare provider rules.