Big Changes Ahead for Childcare Funding — What’s Coming in September 2025?

Back on 8th August 2024, we explained how childcare funding was expected to expand — including the move to offer 30 hours of free childcare for eligible 2-year-olds and beyond. Today, those reforms are becoming concrete. The final phase kicks in from September 2025, dramatically extending support for working families.

What’s New Since Our Last Update?

• From September 2025, eligible working parents will receive 30 hours of free childcare per week, from 9 months old until school age, covering 38 weeks a year

• Applications opened on 12 May 2025 for children reaching 9 months by 1 September

• Local authorities will receive additional funding to support the final rollout, backed by a £75 million early years expansion grant

• Early data shows nearly 500,000 children aged between 9 months and 2 years have already registered — that’s roughly 73% of eligible children

What This Means for Families & Financial Planning

For Parents:

• Twice the free hours — this expansion can halve annual childcare costs for eligible families.

• Better budget planning — knowing you’ll get 30 hours a week allows more reliable childcare budgeting.

• Early adoption is key — apply by 31 August to start receiving benefits in September terms.

For Providers:

• Many nurseries are struggling with rising costs, and some may only offer limited funded hours or increase fees for unpaid extras. 

For Wealth Planning:

• Freeing up more hours may give parents greater flexibility for:

  • Adjusting work hours

  • Contributing to pension or savings

  • Investing in other areas like ISAs or mortgage repayment

Heads-Up: What Parents Should Do Now

• Check eligibility on ChildcareChoices.gov.uk and apply for your entitlement code by 31 August.

• Talk to your childcare provider about whether they offer stretched hours or added support in accessing 30 hours.

• Review your budget — more funded childcare means more headroom for saving, investing, or pursuing flexible work options.

FAQs

What childcare changes are coming in September 2025?
Eligible working parents will receive 30 hours free childcare per week — up from 15 — for children aged 9 months to school age across 38 weeks.

How many children are already registered for childcare entitlement 2025?
Around 466,700 children aged 9 months to 2 years are registered — about 73% of eligible families.

When should I apply for free childcare hours to start in September?
Apply by 31 August 2025 to secure funding for the autumn term — codes issued from 12 May 2025 are already available.

Will childcare be affordable even with 30 free hours?
Not always. Some providers are raising fees or limiting funded spaces due to rising costs — parent vigilance and provider planning remain vital.

Why This Matters for Financial Advice

Childcare costs are often parents’ second-highest monthly outlay — after housing. With eligible working families gaining double the support from September, this is a great time to revisit your household financial plan.

At Mather & Murray Financial, we help families across the South West, including Swindon, Bristol and Cirencester make informed financial decisions — whether it’s:

• Adjusting budgets for childcare savings

• Reviewing investments or mortgage strategies

• Planning for flexible working or career changes

Related Reading

• Big Changes Ahead for Childcare Funding – Original blog detailing the early rollout of funded childcare schemes.

Give us a call now, CONTACT US or BOOK A CALL BACK to speak to a financial adviser.