Government Support for Nursery Childcare in the UK – 2025 Update


By nuuri team
Reading time: 4 minutes
Navigating nursery childcare costs can be challenging, but the UK government continues to offer robust support to help families and nurseries manage expenses. In this update, we break down the latest government support available as of 2025 for Scotland, England, and Wales.
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Scotland
Free Early Learning and Childcare (ELC)
- Who’s Eligible: All 3 and 4-year-olds are entitled to up to 1,140 hours of free early learning and childcare each year.
- Flexibility: The free hours can be taken as around 30 hours per week during term time or spread throughout the year.
- 2-Year-Olds: Some 2-year-olds remain eligible if their families meet certain criteria, such as being on benefits like Income Support, Jobseeker’s Allowance, Employment and Support Allowance, or Universal Credit (subject to updated income thresholds).
Tax-Free Childcare
- How It Works: Parents can claim a 20% government top-up on childcare costs, effectively paying only 80p for every £1 spent.
- Limits: Up to £2,000 per year, per child (or £4,000 if the child has a disability).
- Eligibility: Both parents (or a single parent) must be in work, earning between the minimum threshold and the updated maximum limit, which remains similar to previous years.
Additional Initiatives
- The Scottish Government continues to review childcare policies to ensure that families can access the support they need, with pilot projects in certain localities aimed at further easing the childcare journey for families.
England
Free Early Education Entitlement
- Standard Provision: All 3 and 4-year-olds are entitled to 570 hours of free early education per year (approximately 15 hours per week over 38 weeks).
- Extended Hours: Working parents may be eligible for an extended offer of 30 hours per week if both parents are in work and meet the relevant income criteria, which remain largely unchanged.
Support for 2-Year-Olds
- Eligibility: Some 2-year-olds may receive up to 15 hours of free childcare if their parents are on certain benefits (such as Income Support, Universal Credit with earnings below the set threshold, or Child/Working Tax Credit).
- Additional Considerations: Special educational needs (SEN) or children looked after by local authorities continue to receive tailored support.
Tax-Free Childcare & Universal Credit Childcare Element
- Tax-Free Childcare: Available to all eligible families, providing the same 20% top-up on childcare expenses as in previous years.
- Universal Credit: Families receiving Universal Credit can still claim up to 85% of childcare costs, with maximum limits remaining at £646 per month for one child and £1,108 for two or more children.
Recent Developments
- In 2025, there has been an increased focus on supporting nurseries to reduce administrative burdens, ensuring that these funding schemes complement broader efforts to enhance early years education.
Wales
Free Childcare for 3- and 4-Year-Olds
- What’s Offered: Working parents can access up to 30 hours of free early education and childcare per week for 3 and 4-year-olds during term time, with an additional offer during school holidays (up to 9 weeks).
- Eligibility: Both parents (or a single parent) need to be working, with updated income criteria in place.
Flying Start Programme
- Focus: In designated disadvantaged areas, the Flying Start programme continues to provide free childcare for 2- to 3-year-olds, offering around 12.5 hours per week during term time.
- Objective: This initiative aims to give young children from lower-income families a strong educational foundation.
Tax-Free Childcare & Universal Credit
- Availability: Just like in Scotland and England, eligible families in Wales can benefit from Tax-Free Childcare and the Universal Credit childcare element, ensuring broader access to childcare funding.
Final Thoughts
As of 2025, the UK government remains committed to supporting families and nurseries by providing a range of funding and childcare schemes designed to make early years education more accessible and affordable. Whether you’re a parent striving to balance work and childcare or a nursery looking to optimise enrolment and operations, these programmes offer crucial support during these formative years.
For the most accurate and personalised information, we recommend visiting your local authority’s website or contacting the relevant government department. Stay informed, and let Nuuri help you navigate the childcare landscape with ease!
For a detailed breakdown of nursery costs based on your specific needs, use our Nuuri Cost Calculator
To learn more about what Nursery costs in the UK, see our Nursery Cost Guide.
For more information on what to look for when searching for a Nursery, please visit our Nursery Search Checklist.
For advice on nursery waiting lists, check out our Nursery Waiting Lists Guide.