How Childcare Funding Works - and Why Your Return to Work Date Matters

Starting work again after maternity or paternity leave is a big step — and working out your childcare funding can feel confusing. The biggest mistake many parents make is leaving their funding application too late or misunderstanding how their return-to-work date affects when their funding can start.

Let’s break it down simply so you can plan ahead and avoid paying unnecessary nursery fees.

What is 30-Hour Funding?

The government offers up to 30 hours of funded childcare per week (38 weeks a year) for working families.This can start from the term after your child turns 9 months old, depending on your income and work status.

To qualify:

• You (and your partner, if you have one) must both be working, or about to start work.

• You must each earn the equivalent of at least 16 hours a week at National Minimum Wage, but less than £100,000 per year.

• You must apply for and receive your funding code before your child starts.

You can check your eligibility here:👉 Best Start in Life – Working Families Eligibility

Timing Is Everything: Apply 30 Days Before You Start

You must apply for your funding code the term before your child starts at nursery.If you miss that window, your funding won’t begin until the next term - which means you’ll pay full fees in the meantime or they will not start nursery.

So if you’re returning to work, it’s not just about when you go back - it’s about when your funding can begin.

The Maternity Leave Trap (and How to Avoid It)

Here’s what catches many parents out:If you are still on maternity, paternity, or shared parental leave, you can be eligible — but your funding won’t start until you are officially classed as “back at work.”

That means:

• If your maternity leave runs until, say, 15 April, you can’t use funding until the term after 15 April (so from 1 September in this case).

• But if you end your maternity leave earlier or use annual leave to technically return to work sooner, your funding could start from 1 April instead.

Your official return-to-work date is what matters, not the first day you drop your child off at nursery.

Tip: Using Annual Leave to Bring Your Date Forward

If you’re due back at work after a term boundary - for example, May or October - you could take some of your paid annual leave before your official return date.

This means your employment status changes to “back at work” earlier, even if you’re still at home with your baby.That small shift could bring your funding start date forward by a full term, saving you three-five months of nursery fees!

Example:

• Official maternity leave ends: 15 April

• You use two weeks’ annual leave before this, returning on paper on 31 March - You now qualify for funding from 1 April instead of 1 September

Always confirm with your employer that your HR system records this accurately - it’s your contractual return date that counts, not when you physically start childcare.

Many parents lose a whole term of funded hours because they didn’t realise how strict these cut-offs are.

A one-week difference in your HR paperwork can literally change when your nursery funding begins - so plan ahead, speak to your employer, and apply early!