Criteria for Two Year Old Funding

Local Authorities (LAs) have a statutory duty to secure funded early education for eligible two year olds. Two year olds, who meet any one of the following criteria, are eligible to receive two year old funding if:

• They meet the eligibility criteria also used for free school meals.
• Their families receive Working Tax Credits and have annual gross earnings of less than £16,190 per year.
• They have a current statement of special educational needs (SSEN) or an education, health and care plan (EHCP).
• They receive a Disability Living Allowance.
• They are looked after by their local authority.
• They have left care through special guardianship or through an adoption or residence order.

Two year old funding (TYOF), via self-defined reports, enables local authorities to:

• Monitor the number of eligible 2 year old children and compare this number with the take up of funded places.
• Identify eligible 2 year old children who have not taken up funded provision.
• Monitor the effectiveness of children’s centres.

Business Rules

In order to calculate two year old funding, the year is divided into the following three periods:

• 1st January to 31st March
• 1st April to 31st August
• 1st September to 31st December.

Parents can check their eligibility for two year old funding during the period in which their child’s second birthday falls. Funding, however, will not commence until the first day of the period following the period in which the child’s second birthday fell.

Once eligibility has been proven, there is no requirement for further checks; the funding is available for the whole eligibility period.

Late applications can be made at any time during the total period in which funded hours are available for the child. However, funding is not backdated. Applications can be made until the end date of the period in which a child’s third birthday falls.

A child is too young for two year old funding, if their second birthday falls after the end of the current period.

A child is too old for two year old funding, if their third birthday was before the start of the current period.

A parent can apply for two year old funding immediately, if their child’s second birthday was before the start of the current period and if their third birthday was not before the start date of the current period.