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0-2 Childcare Funding

How do children get the funding?

Children must be referred by a professional such as a Health Visitor or Family Support Worker. All referrals are discussed at a 0-2 multi-agency panel. There is strict criteria that the family must meet to receive this funding.


Providers will be funded on the basis of their own hourly rates at the time the placement is made. The maximum number of hours which a child will receive a week is 10 hours ideally delivered over 2 days (2 x 5 hour sessions). If transport is provided then this will form part of the hourly claim for the child e.g., if it takes 15 minutes to collect a child from their home then that time will form part of the first hour of funding that is claimed.

When providers send in their first claim form the funding team will calculate how much money the provider should receive for the child, based on their hourly rate; the number of hours attended per week and the number of weeks to the six monthly review date or the end of the funding period in which the child has their second birthday.

This funding will be paid retrospectively for claims.

Flexible delivery

The 0-2 funding panel will, where possible, offer childcare which will fit within the definition of flexible delivery that is used for two, three and four year old funding, unless a different pattern is agreed when the placement is set up. For the majority of children, the hours and pattern of their claims should fit in with the following rules;

children can:

  • access a maximum of 2 sessions (10 hours) a week over a minimum of 2 days, for up to 52 weeks;
  • access a minimum session length of 3 hours. Above 3 hours, funding will be paid for in part hours in intervals of 30 minutes, e.g. 3½ hours;
  • access a maximum of 8 funded hours in one day;
  • access funded hours between 7.30 am and 6.30 pm;

How will providers know if a family is eligible for a funded place?

Parents will be notified in writing that their child is eligible for 0-2 year old funding and will bring a letter to confirm eligibility. Providers need to complete a Parent and Provider Agreement to agree the days and hours that the child will attend and record the information needed to check the family’s income eligibility to 2-year-old funding.

How long will placements last?

Placements will be reviewed every six months from the start date by the 0-2 panel. Children will not automatically move from a 0-2-year-old funded place to a two year old funded place. Children can be checked to see if they are eligible for 2-year-old funding via the hub the term before their second birthday.

Child's date of birth       Date 0-2 funding ends
1 January - 31 March       31 March following the child's second birthday
1 April - 31 August       31 August following the child's second birthday
1 September - 31 December       31 December following the child's second birthday


If the child is eligible to receive two-year-old funding then the provider must either be waiting for their first Ofsted inspection or be graded ‘Good’ or ‘Outstanding’ to deliver two-year-old funding. Hours must be claimed in accordance with the funding requirements. This may involve a change in pattern of attendance as the two, three and four-year-old funding has a different definition of flexible delivery.

If the family does not qualify for two-year-old funding, based on their income, funded childcare will cease at the end of the funding period in which the child has their second birthday.

What information is available to the provider about the family?

Children funded as a 0-2-year-old have been assessed. Providers can collect a copy of the assessment with information on the child and family from their nearest children’s centre. To do this they will need to book a time to collect the information from the centre and show identification.

Documents required for 0-2 funding

If a 0-2 funded child leaves a setting the childcare provider must inform the Early Years Funding team via email as soon as possible.





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