Moving your child to a new nursery can feel like a big step, especially if you’re unsure what happens to your funded hours or whether you need to transfer the funding yourself. The reassuring news is that transferring nursery funding is common, and when you take the right steps early on, the process is usually straightforward and well organised.
In this guide, we’ll walk you through how childcare funding works when moving from one childcare provider to another, what families need to do, and how Grandir UK can support you every step of the way.
How nursery funding works when you change childcare provider
In most cases, funding does not automatically follow your child when they move to a new setting or new provider. Funding is claimed by the provider delivering your child’s sessions, which means your current provider will stop claiming once your child leaves, and the new provider will begin to claiming the funding when your child starts with them.
Funding is usually organised by your local authority and issued in blocks known as a funding period (often aligned with school term times). Because of this the timing of your move, for example, changing nurseries mid-term or at the start of a new term, can affect how and when the funding transfers.
Parents are not usually obliged to repay any money that has been correctly claimed, but it’s always a good idea to check arrangements with both your current and new provider to make sure everything is in order.
What happens to funded hours?
If your child receives funded hours through the government’s working parent entitlement or universal funded childcare, these hours don’t disappear when you change nursery, but they do need to be reassigned to the new setting.
Your new nursery will normally ask you to:
Once this information is received, the new provider will contact the local authority and arrange to claim the funded hours on your behalf.
If your child attends more hours than the funded entitlement, you will still need to pay any additional time, as well as any optional extras such as meals, outings or extended sessions, depending on the nursery’s agreement.
Tax-Free Childcare and childcare accounts
If you use a Tax-Free childcare account, the process is straightforward. You simply just need to add your new provider to your account and direct any future payments to them instead of your current provider.
Your eligibility for Tax-Free Childcare will not change simply because you move to a new setting., As long as your circumstances stay the same and you continue reconfirming your eligibility through the HMRC website every three months, your support will continue as normal.
If you’re unsure how to update your account, your new nursery team will be more than happy to guide you through the steps or point you in the right direction.
Notice periods and timing
Most nurseries have a notice period, which is usually between four to six weeks, although this can vary depending on the provider. It’s always important to check the terms in your current contract before you confirm a new nursery place.
Careful planning can help you:
Where possible, moving at the end of a funding period or term can make the process simpler but mid-term moves can still be managed without any issues with the right communication and preparation.
Can funding be split between nurseries?
In some situations, funded hours can be shared between more than one childcare provider, depending on the rules of your local authority . For example, a child might attend one setting for two days a week and another for the remaining hours.
Your local authority will be able to confirm whether this is allowed in your area, and both providers will, need to agree how the funded hours are allocated and claimed.
Steps parents should take when transferring nursery funding
If you’re planning to move your child to a new setting, these steps will help ensure everything runs smoothly:
- Check the notice period required by your current provider
- Apply for a funded place at your new setting
- Share your eligibility code and required documents
- Contact your local authority if advised
- Update your Tax-Free Childcare account
- Confirm payment arrangements for additional hours or extras
- Agree a start date with the new provider
Taking these steps early helps to avoid delays and ensures your child’s funding transfers without any issues.
How Grandir UK can support your move
At Grandir UK, we understand that changing nursery can feel like a big decision. Whether you’re moving due to relocation, changing work patterns, or looking for different facilities, our friendly teams are here to help every step of the way.
We can:
We also encourage parents to visit their new setting, meet the team, and talk through their child’s routine, interests, and sessions so we can provide the best possible childcare experience from day one.
Reassurance for parents
Transferring childcare funding might seem complicated at first, but it’s something nurseries manage regularly throughout the year. With clear information and early communication, your child’s funded hours can be transferred smoothly, without any disruption to your child’s care or routine.
If you’re considering a new nursery and have questions about funding, our team will always be happy to help you find the right options for your family.
Tags
Share this article
Related blog/news
Swipe to see our latest articles.
