30 hours childcare: Government rolls out funded places for Birmingham families

Free childcare worth around £7,500 a year per child has landed for working families in Birmingham. From 1 September 2025, eligible parents can get 30 hours a week of funded care from the term after their child turns nine months, right up until they start school. Ministers say the change will help more parents work more hours and leave children better prepared for Reception.

Shabana Mahmood called it a "promise made and a promise delivered," adding: "We said we'd put money back in working parents' pockets and give children the best start in life, and today we're doing just that."

What’s changing from September 2025

This is the final stage of England’s early years expansion. The country already had 30 hours for many three- and four-year-olds. The big shift is that the same level of support now extends down to babies from nine months, not just toddlers. Parents can use the hours across 38 weeks of the school year (1,140 hours total), or “stretch” them across 52 weeks if their provider allows, which works out at about 22 hours a week year-round.

Key points in plain English:

• The offer: 30 hours childcare a week in term time for eligible working parents from the term after a child turns nine months until school.
• Eligibility: You (and a partner, if you have one) need to be working or about to start work, earning at least the equivalent of 16 hours a week at National Minimum or Living Wage over the next three months. Newly self‑employed parents get a 12‑month grace period on the minimum income rule.
• Earnings cap: As with the existing scheme for older children, there’s an upper earnings limit per parent. Families over the cap won’t qualify.
• Flexibility: You can split hours across more than one provider. Many nurseries and childminders offer stretched hours over 52 weeks.
• What’s covered: Funding pays for the childcare place. Providers can still charge for extras like meals, nappies, and trips.

Parents in Birmingham told us demand for places is already strong. That matches the national picture: take‑up is expected to exceed early projections, with more than half a million children on course to benefit. A new government poll suggests nearly a third of parents plan to increase their work hours because of the expanded support.

Officials frame the policy as helping with more than just the monthly bills. Time in a quality early years setting is linked to stronger language and social skills by age five. The government is also promoting a new Best Start in Life online hub that pulls together advice on pregnancy, early years education, and childcare options in one place for parents.

How to claim (the basics):

1. Apply through the official government system to get a childcare code. You’ll need your National Insurance number and details about your work.
2. Give the code to your chosen provider before term starts. Providers must have a place available and be part of the funded scheme.
3. Reconfirm eligibility every three months. If your circumstances change, tell HMRC to avoid any issues.
4. Talk to your provider about stretching hours, additional charges, and daily schedules (start/finish times vary).

Last year, around half a million families used the previous 15‑hour offer for under‑threes, and 93% of parents got their first‑choice provider, according to the Childcare Experiences Survey. The government expects a similar pattern this time, but warns that availability depends on local capacity.

What it means for families, providers and Birmingham

For households, the headline promise is money back in the bank. Parents working standard office hours with a child under two often face some of the highest childcare costs. The funded hours lower that burden and give families more freedom to take on extra shifts or return to work sooner after parental leave.

For Birmingham’s economy, more parents able to work stable hours is a direct productivity boost. Employers that struggled to retain staff after parental leave should find it easier to keep experienced workers. In sectors facing shortages—healthcare, hospitality, education—this could make a visible difference.

There are challenges. Nurseries and childminders need more staff and space to meet rising demand. Providers welcome the policy in principle but say hourly funding rates must keep pace with their real costs—wages, rent, energy, and training—especially for under‑twos, where ratios are tighter. When funding doesn’t cover costs, settings either limit funded places or charge more for extras, which can be confusing for parents.

Recruitment is another pressure point. Early years roles compete with retail and hospitality for pay and hours. Ministers point to a national recruitment drive and grants to help nurseries expand and upgrade spaces. Providers say consistent funding and simpler paperwork matter just as much as one‑off grants when it comes to keeping staff.

Parents should also watch the small print:

• Term dates: The 30 hours is a term‑time entitlement. If you need care over school holidays and your provider doesn’t stretch hours, you’ll have gaps to cover.
• Extra charges: Ask for a clear breakdown of what’s funded and what you’ll pay for (meals, nappies, extracurriculars). Policies differ a lot by setting.
• Deadlines: Codes need to be applied for and validated before the start of term. Miss the cut‑off and you’ll likely wait until the next term.
• Mixing entitlements: If your two‑year‑old qualifies for a disadvantaged two‑year‑old place as well as the working entitlement, you’ll need to claim the 15 hours for each separately.

How does this fit with other help? Some families use Tax‑Free Childcare alongside funded hours to cut costs further. Others on Universal Credit can claim back a large share of remaining childcare bills. What you can combine depends on your income and work pattern, so it’s worth checking your specific case before you sign a contract.

The wider picture matters too. England’s original 30‑hour offer for three‑ and four‑year‑olds arrived in 2017. Extending it down to nine months is a big shift in how the state supports early childhood. The promise is simple: better school readiness, more parents in work, faster growth. Whether the system can deliver at the scale Birmingham needs comes down to places, people, and fair funding. If those pieces line up, parents will feel the change where it counts—on the payslip and at pickup time.