Government Support
Early Years Funding
Help paying for your childcare
Government funding can dramatically reduce the cost of nursery. Here's everything you need to know - explained simply.
Funding rates shown on our website are locally agreed rates for Dorset Council. Rates are set by the local authority and may differ from national averages.
Not sure what you're entitled to?
Use the Government's official eligibility checker - it takes just a couple of minutes and tells you exactly what support you qualify for.
Your funding options
All of these schemes are accepted at Yarrells Nursery. From September 2025, eligible working parents of children from 9 months can access up to 30 hours per week.
30
hrs/week
FROM 9 MONTHS OLD TO SCHOOL AGE · WORKING PARENTS
30 hours funded childcare for working parents
Since September 2025, eligible working parents can claim 30 funded hours per week from when their child is 9 months old - right through until they start school. This is the most significant funding available and applies across all age groups at Yarrells Nursery.
TOTAL FUNDED HOURS
30 hours/week · 38 weeks/year (1,140 hours total) — or stretched over 50 weeks
Both parents (or sole parent) working at least 16 hrs/week at National Minimum Wage, each earning under £100,000/year
WHO QUALIFIES?
Under 2s: £10.49/hr
2 yr olds: £7.77/hr
3–4 yr olds: £5.94/hr
YARRELLS RATE
Create a Government Gateway childcare account on GOV.UK - you'll receive an 11-digit code to give to Yarrells. Reconfirm every 3 months.
HOW TO APPLY
You can apply from when your child is 23 weeks old. Funding starts the term after your child turns 9 months. Can be combined with Tax-Free Childcare for any additional hours.
15
hrs/week
AGE 3 & 4 · ALL FAMILIES - NO INCOME TEST
Universal 15 hours for 3 & 4 year olds
Every child aged 3 or 4 in England is entitled to 15 funded hours per week, regardless of income, employment status, or family circumstances. This starts automatically the term after their third birthday.
15 hours/week · 38 weeks/year (570 hours total) — or stretched over 50 weeks
TOTAL FUNDED HOURS
WHO QUALIFIES?
Every 3 and 4 year old in England.
YARRELLS RATE
£5.94/hour
ALSO ACCEPTED IN RECEPTION
Funding continues at Yarrells until the term after your child turns 5
If you are a working parent, you may be eligible for an additional 15 hours on top of this (see the 30-hours card above). The two combine to give you 30 hours in total.
15
hrs/week
AGE 2 YEARS · FAMILIES RECEIVING ADDITIONAL SUPPORT
15 hours for disadvantaged 2 year olds
Families of 2 year olds who receive certain benefits may qualify for 15 funded hours per week under a separate scheme. This is different from the working-parent 30-hour entitlement — it's aimed at children who would most benefit from early education.
TOTAL FUNDED HOURS
15 hours/week · 38 weeks/year (570 hours total) — or stretched over more weeks
Families on Universal Credit (household income under £15,400/yr) · children in care · children with an EHCP · children with DLA
WHO QUALIFIES?
YARRELLS RATE
£7.77/hour
HOW TO APPLY
Contact Dorset Council directly - not through the GOV.UK childcare account system
Note: if you are a working parent of a 2 year old, you are more likely eligible for 30 hours under the working-parent entitlement above. Check your eligibility using the tool at the top of this page.
20%
off fees
ALL AGES UP TO 12
Tax-Free Childcare — save 20% on your fees
The government contributes to a childcare account that you use to pay Yarrells: for every £8 you pay in, the government adds £2. That's an effective 20% discount on all childcare costs, including any hours beyond your funded entitlement.
MAXIMUM SAVING
Up to £500 per quarter (£2,000/year) · Up to £1,000/quarter if child is disabled
Working parents, each earning at least the equivalent of 16 hrs/week at National Minimum Wage, each earning under £100,000/year
WHO QUALIFIES?
HOW TO USE
Open a childcare account on GOV.UK, pay in, and then pay Yarrells from that account
CAN BE COMBINED WITH
30-hours funded childcare — use Tax-Free Childcare to pay for any additional hours beyond your entitlement
You cannot use Tax-Free Childcare and childcare vouchers at the same time - check which saves your family more. Tax-Free Childcare cannot be used to pay for lunches at Yarrells.
via employer
EXISTING USERS ONLY · VIA EMPLOYER
Employer Childcare Vouchers
Eligible working families can double their funded hours to 30 per week, a significant saving. You can also claim Tax-Free Childcare at the same time.
WHO CAN USE THESE?
Parents already enrolled in an employer scheme before October 2018. Schemes closed to new entrants.
SAVING
Exempt from tax and National Insurance — saving varies by salary and tax band
AT YARRELLS
Accepted until the term after your child's 5th birthday. Cannot be used to pay for lunches.
CANNOT BE COMBINED WITH
Tax-Free Childcare - you must choose one or the other
If you are currently using vouchers, it is worth comparing them to Tax-Free Childcare - for many families Tax-Free Childcare now offers a better saving.
Stretched funding
Spread your hours across the whole year
Because Yarrells offers all-year-round care, we can spread your funded hours across more weeks so that you benefit from them consistently, rather than only during term time.
15 HOURS · STRETCHED OVER 50 WEEKS
Standard entitlement: 15 hrs/week x 38 weeks
Total hours in the year: 570 hours
Stretched weekly hours: 11 hrs/week*
* Note: these are yearly averages — your actual weekly hours may vary slightly by term based on Dorset County Council's funding calendar.
30 HOURS · STRETCHED OVER 50 WEEKS
Standard entitlement: 30 hrs/week x 38 weeks
Total hours in the year: 1,140 hours
Stretched weekly hours: 22 hrs/week*
* Note: these are yearly averages — your actual weekly hours may vary slightly by term based on Dorset County Council's funding calendar.
Why is stretched funding better for all-year-round families?
Term-time-only funding means your funded hours stop in the school holidays, so you'd pay full fees during those weeks. With stretched funding, the same total hours are simply spread more evenly - your child attends consistently and your monthly costs are more predictable. The total number of funded hours is exactly the same either way. Please speak to our Admissions team about how we apply stretched funding at Yarrells.
Your weekly hours can change slightly term to term
The number of weeks in each funding term (Autumn, Spring, Summer) is set by Dorset County Council, and this varies term to term.
Because your funded hours are spread across each term's actual number of weeks, your weekly hours may go up or down slightly from one term to the next, even though your total yearly entitlement stays the same.
We'll always let you know your exact weekly hours at the start of each term.
Starting Nursery Mid-Academic Year?
Starting after the first day of the Autumn Term.
Here's What You Need to Know
You'll still get funding, just a smaller share, worked out from your start date to the end of the school year.
Government funding is worked out over the whole school year (1st Sept – 31st Aug), not from when you join.
Starting partway through the year means you get a share of the year's funding, not the full amount.
Example: Start in January with a 30-hour code → you get the hours left for the rest of the year (not the full 1,140), spread out across the remaining terms based on how many weeks each one has.
Funding can only start after your code is confirmed - and only from the start of the next term, not straight away.
Example: If you were starting in October, you would need an activated code from the Government before 31st August (before the start of that term.)
Yarrells is open 50 weeks a year, and your hours are spread evenly across those weeks, rather than just term time. This keeps your bill the same amount every month.
What this looks like on your invoice
If you join mid-year, your invoice will show "Single Term Stretch Funding". This reflects that your funding is being calculated and spread across the remaining part of the year only, not a full 12 months.
This continues until 1st September the following year, at which point your funding switches to full annual stretch funding, spread evenly across the whole school year ahead.
Your total hours and monthly bill will look slightly different during this first "single term stretch" period compared to families who joined at the very start of the year, this is normal and expected.
Good to know:
✅ Have your Government Gateway code ready and confirmed before term starts - funding can't be backdated.
✅ Apply/confirm before the deadline (31 March, 31 Aug, 31 Dec) - miss it, and you wait for the next term.
❌ Can't switch between stretched and term-time funding mid-term - only at the start of a new term.
What Yarrells accepts
Early Years Funding
For eligible children in Nursery and Reception (until they turn 5)
Tax-Free Childcare
Accepted until the term after your child's 5th birthday. Cannot be used for lunches.
Childcare Vouchers
Employer-issued vouchers accepted until the term after your child's 5th birthday.
Stretched Funding
Spreading your funded hours across the full year — ideal for all-year-round families
How to claim your funded hours
- step by step
-
Visit childcarechoices.gov.uk to find out which schemes you qualify for, the tool takes about 2 minutes.
-
For 30-hour funding and Tax-Free Childcare, you'll need a Government Gateway account.
Visit childcarechoices.gov.uk to get started.
You can apply from when your child is 23 weeks old.
You'll need your National Insurance number (or UTR if self-employed) and your child's date of birth.
-
Once approved, you'll receive a unique code. You will need this number to add onto the Parental Agreement Funding Form that will sent to you by the Admissions Team before your child’s start date.
Each term, you'll receive a secure online form through Funding Loop to confirm your child's funded hours. Most details are pre-filled, just check, sign, and submit. -
If your child attends all year round, ask us about spreading your hours across the full year. We'll explain how many weekly funded hours that gives you and how it works on your invoice.
-
Your eligibility must be reconfirmed each quarter via your GOV.UK account. You'll get a reminder — don't miss it, or your funding will pause.
Each term, you'll receive a secure online form through Funding Loop to confirm your child's funded hours. Most details are pre-filled, just check, sign, and submit.⚠️ Two separate steps, both needed every term:
Funding Loop form → confirms your hours with Yarrells
HMRC reconfirmation → keeps your code valid
-
Yarrells will apply the funded hours to your monthly invoice. Any additional hours are charged at our normal session rates.
Useful downloads & links
Funding Rates
& Weeks
Best Start
in Life
Funding Accessibility Policy
Funding Eligibility Checker
Nursery Fees
& Sessions
Have a question about funding?
Our Admissions team is happy to help you understand exactly what you're entitled to and how it applies to your sessions at Yarrells.
