A Parent's Guide to Nursery Funding in Scotland

If you’ve started looking into nursery funding in Scotland, you may already have come across terms like “1,140 hours”, “eligible twos”, “funding follows the child” and “stretched places”, often all on the same page. It’s a lot to take in, especially when you’re also juggling work, broken sleep and everything else that comes with family life.

The good news is that Scotland has one of the most generous funded childcare offers in the UK. Once you understand how it works, it becomes much easier to make the most of it for your family.

We’ve put together this guide to explain it all in plain English. Our nursery managers talk families through funding all the time, and these are the questions we hear most often. If anything is still unclear after reading, please do pop in or give your local Thrive nursery a call. We’re always happy to sit down with you and work it out together.

What Are the 1,140 Funded Hours?

Every three and four-year-old in Scotland is entitled to up to 1,140 hours of funded early learning and childcare each year. You’ll often see this shortened to ELC. Some two-year-olds are entitled to the same, which we’ll come to in a moment.

The hours are paid for by the Scottish Government through your local council, so they’re free to you. Unlike in England, they don’t depend on whether you’re working or how much you earn. Every child of the right age can have them.

In practice, 1,140 hours works out at around 30 hours a week if you use them during term time only (38 weeks of the year), or around 22.5 hours a week if you spread them across the whole year.

For many families, that’s a real help. It can cover several days of nursery each week, and it gives your little one regular time to play, learn and make friends in the year or two before they start school.

Could My Two-Year-Old Get Funded Hours?

Some two-year-olds are entitled to the full 1,140 hours too. Your child may be eligible if:

• you receive certain benefits, such as Universal Credit (within an earnings limit), Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance
• you receive certain tax credits within an income limit
• you or your child have experience of care, for example if you were looked after by a local council, or your child is looked after or in kinship care

The exact rules, including the earnings limits, are set out on the mygov.scot page on funded childcare for two-year-olds. Some councils also offer places to other two-year-olds at their discretion, so it’s worth checking with yours too.

We’d gently encourage any family who thinks they might qualify to look into it. Only around half of eligible two-year-olds in Scotland take up their funded place, which means lots of families are missing out on support they’re entitled to.

Once your child has an eligible place, they keep their entitlement until they start school, even if your circumstances change along the way.

When Can My Child Start Their Funded Hours?

Funded hours usually start at the beginning of the school term after your child’s third birthday, or after their second birthday for eligible two-year-olds. Here’s how that works out:

So, for example, if your little one turns three in October, their funded hours would usually start in January.

Some councils start funding earlier than this, for example from the Monday after a child’s third birthday or from the following month, so it’s worth checking your council’s website. If your child starts partway through the year, you’ll receive a share of the 1,140 hours for the time that’s left, rather than the full amount.

Term Time or All Year Round?

By default, the 1,140 hours are based on 38 weeks of the year, in line with school terms. That suits some families well, but if you work through the school holidays, it can leave you with weeks to fill.

That’s why most of our Thrive nurseries stretch funding across the whole year. Rather than using 30 hours a week during term time and nothing at all in the holidays, your hours are spread evenly, which works out at up to 22. funded hours a week all year round. These can be used across a range of session patterns, so you can build a week that fits around your family.

Some of our nurseries also offer term-time-only places, so do ask your nursery manager which options are available at your nursery.

Stretching your hours also keeps your monthly fees steady, with no surprise jumps over the summer or at Christmas. A small number of our nurseries can offer term-time-only places, although these are limited, so do ask your nursery manager if that would suit you better.

Choosing Your Nursery: Funding Follows the Child

In Scotland, funding “follows the child”. This means you can use your funded hours at any nursery or childminder that your council has approved as a funded provider, as long as they have a place available. You’re not limited to council-run nurseries, so you’re free to choose the setting that feels right for your child.

Funded providers have to meet the National Standard for early learning and childcare, which covers areas such as staffing, the quality of care and learning, outdoor play and healthy meals. They’re also inspected by the Care Inspectorate, sometimes jointly with HM Inspectorate of Education. Our guide to Care Inspectorate inspections explains what their reports and grades mean.

One thing to be aware of: if you’d like your child to attend a nursery in a different council area from where you live, perhaps close to your work, this is known as a cross-boundary place. Not every council will fund these, and some may only fund part of the hours. It’s worth checking with your home council before you make a decision, and our nursery managers are happy to help you find out what applies to you.

How Do I Apply?

This is where things can vary quite a bit, because each council runs its own process. In most areas, you apply to your local council for a funded place, often during a registration window early in the year for places starting in August. Some councils ask you to apply through your chosen nursery instead.

You’ll usually need:

• your child’s birth certificate
• proof of your address, such as a council tax bill or utility bill in your name

Deadlines differ from council to council, so we’d recommend checking your council’s website as your child approaches their second or third birthday. Parent Club, the Scottish Government’s website for families, also has a helpful overview.

If you’re joining us at Thrive, your nursery manager will explain how it works in your area and help make sure nothing gets missed.

Thinking About Deferring Primary 1?

In Scotland, children start Primary 1 in August if they turn five between March and the end of the following February. That means some children start school while they’re still only four.

If your child will still be four when the new school term begins in August, you can choose to defer their start by a year. Since August 2023, every child who defers in these circumstances is entitled to an extra year of funded early learning and childcare.

Deciding whether to defer is a big decision, and there’s no right or wrong answer. Your child’s key person knows them well and will always be happy to talk it through with you. Deadlines for deferral requests vary between councils, so it’s best to check yours in good time.

Help With the Hours You Pay For

If you need more childcare than your funded hours cover, or your child isn’t eligible yet, there’s still help available. These schemes are run by the UK Government and are open to families in Scotland.

Tax-Free Childcare

For every £8 you pay into a Tax-Free Childcare account, the government adds £2. You can receive up to £2,000 per child each year, or up to £4,000 if your child is disabled, and you can use it alongside your funded hours to pay for any extra sessions.

To qualify, you (and your partner, if you have one) generally need to be working and earning at least the equivalent of 16 hours a week at the National Minimum Wage or National Living Wage, and each earning less than £100,000 a year. You can apply online through GOV.UK.

Universal Credit Childcare Costs

If you receive Universal Credit and you’re working, you may be able to claim back up to 85% of your childcare costs, up to a monthly limit. You usually pay for the childcare first and then report the costs in your Universal Credit account to claim them back.

You can’t use Tax-Free Childcare and Universal Credit childcare costs at the same time, so it’s worth checking which would give your family more support.

Extra Support From Social Security Scotland

Scotland also has its own family payments, run by Social Security Scotland, for families who receive certain benefits. They’re well worth knowing about, as they can make a real difference during the early years. For 2026 to 2027, they include:

• Best Start Grant Pregnancy and Baby Payment: £796.65 for your first child, or £398.35 for each later child, which you can claim from 24 weeks of pregnancy until your baby is six months old
• Best Start Grant Early Learning Payment: £331.95, which you can claim when your child is between two and three and a half
• Best Start Grant School Age Payment: £331.95, which you can claim when your child is old enough to start Primary 1
• Best Start Foods: £11.20 a week for babies under one, and £5.60 a week during pregnancy or for children aged one and two, paid onto a card you can use for healthy food
• Scottish Child Payment: £28.20 a week for each eligible child under 16

If you already receive Scottish Child Payment, the Early Learning and School Age Payments are paid to you automatically. The Scottish Government has also announced plans to increase Scottish Child Payment to £40 a week for babies under one from 2027 to 2028.

You can find out more about the Best Start Grant and Best Start Foods on mygov.scot.

What About Babies and Toddlers Under Three?

We know this is the question on many parents’ minds, so we want to be honest with you. At the moment, there’s no universal funded childcare in Scotland for children under three, unless they qualify as an eligible two-year-old. For most families with a baby or young toddler, Tax-Free Childcare and Universal Credit are the main sources of help with costs.

This may change in the coming years. The Scottish Government has said it plans to extend funded childcare to children from nine months old, phased in over the current parliamentary term, and it intends to consult on its plans during 2026 to 2027. Some areas are also trialling targeted childcare support for families on lower incomes.

We’re following this closely and will share updates with our families as soon as there’s more detail. In the meantime, our nursery managers are always happy to look at your working pattern with you and help you find the most affordable way to arrange your child’s sessions.

What’s Included in Our Fees

Our fees vary from nursery to nursery and are available on request. At every Thrive nursery, they currently include nappies, wipes, formula milk, freshly prepared meals and snacks. That means no packing lunchboxes or bags of nappies, which we know makes busy mornings that little bit easier.

Our settling-in sessions are free, too, so your child can get to know their new room and their key person at their own pace before their sessions begin.

You’ll find more detail, including our current funding policy, on our fees and funding page.

Your Funding Checklist

To help you keep track of everything, here’s a quick checklist:

• Check when your child becomes eligible for funded hours, using the start dates above.
• If your child is two, check whether they could get an eligible two-year-old place.
• Find out your council’s application dates and the documents you’ll need.
• If you’d like a nursery outside your council area, ask your council about cross-boundary funding.
• Think about whether term-time or year-round hours suit your family best.
• Look into Tax-Free Childcare or Universal Credit for any extra hours.
• Check whether you can get Best Start Grant, Best Start Foods or Scottish Child Payment.
• If your child will still be four when school starts in August, think about whether deferring Primary 1 might be right for them.

We’re Here to Help

Funding can feel complicated, but you don’t have to work it all out on your own. Our nursery managers across Scotland help families with this all the time. They’ll happily sit down with you, look at your working hours and put together a clear breakdown of what your sessions will cost once your funding has been applied.

If you’re just starting to look at nurseries, our nursery tour checklist can help you make the most of your visits. When you’re ready, find your nearest nursery, come along to one of our open days or book a tour with your local team. We’d love to meet you and your little one.