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Benefits Of Taking Lewisham2's

Toddler in sandLEWISHAM 2s also known as: Early learning for two year olds

Funded Two-Year-Old Places as Part of a Quality, Sustainable Business Model

Offering 15-hour funded places for two‑year‑olds can be a rewarding and sustainable part of your early years business model. Many providers are finding that two‑year‑old funding not only supports inclusion, but also helps strengthen occupancy, income stability and long‑term relationships with families.

This briefing outlines the key benefits for childcare providers of offering funded 15‑hour places for eligible two‑year‑olds and how these places can enhance your reputation, complement your current offer and contribute positively to sustainability.

Summary of the benefits

Summary of Benefits

The Benefits in More Detail

    1.Higher Funding Rates From April 2026

    • £10.22 per hour for each funded two‑year‑old.
    • Many children will also benefit from Early Years Pupil Premium (EYPP) at £1.15 per hour.

    This gives a potential funding rate of £11.37 per hour for eligible children.

    EYPP alone can bring in approximately £655.50 per child per year
    (15 hours × 38 weeks × £1.15)

    Eligibility for EYPP is closely aligned with Lewisham 2 criteria, making it more likely that children accessing 15-hour funded two‑year‑old places will also be eligible for this additional funding. 

    Criteria that aren’t eligible for EYPP are: families with no recourse to public funds, children in receipt of Disability Living Allowance, children with an Education, Health and Care Plan (EHCP).  These categories are eligible for Lewisham 2s but not EYPP.

    2.Stable Funding with No Loss of Eligibility, No Code and No Reconfirmation Required

    Funded places for eligible two‑year‑olds offer certainty and predictability for providers:

    • Once a child becomes eligible, they remain eligible until they turn three.
    • There is no reconfirmation code, no renewals and no mid‑year loss of funding.
    • Children just need a Lewisham-issued letter confirming eligibility.
    • Funding continues each term as long as the child stays with your setting.
    • Children then move straight onto the universal 15 hours for 3–4‑year‑olds from the term after they turn 3, with no break in funding.

    Depending on a child’s birthday, this can give providers six, seven or even eight funded terms of continuous income from the term after they turn two until school entry.

    3.Eligibility Goes Beyond Income

    Lewisham 2 places are not only for families on low incomes. Children may also be eligible if they are:

    • Adopted.
    • Looked after by the local authority.
    • Subject to a Special Guardianship Order.
    • In receipt of Disability Living Allowance (DLA).
    • From families with no recourse to public funds.

    Many of these families are in work and may require paid additional hours, longer days or wraparound care. This can create opportunities to combine funded and paid provision in a sustainable way.

    4.Helping You Fill Quieter Sessions

    Funded two‑year‑old places can be used strategically to improve occupancy:

    • 15‑hour places can occupy quieter days, such as Mondays or Fridays.
    • Offer a term‑time model, for example two full days of 7.5 hours.
    • If you have quiet afternoons, then you could offer 15-hour spaces as afternoon sessions.
    • You may be more likely to fill the spaces on these quieter days with 15-hour funded spaces than with 30-hour spaces.

    5.Enhancing Your Offer and Reputation

    Providing funded places for Lewisham 2s can strengthen your setting in wider ways:

    • Demonstrates a clear commitment to inclusion.
    • Supports children who often benefit most from early education.
    • Builds stronger links with health, education and family support services.
    • Often leads to long‑term relationships with families who stay on as children move through the age ranges, and return with siblings.

    These relationships can support long‑term sustainability and community trust.

    6.Supporting Ofsted Expectations on Inclusion

    Inclusion is a key element of the current Ofsted Inspection Framework – ‘inclusion’ is now one of Ofsted’s evaluation criteria.  Inspectors consider how well settings support disadvantaged and vulnerable children. 

    Offering 15-hour funded two‑year‑old places can help demonstrate and provide evidence of:

    • Inclusive leadership and practice.
    • Thoughtful use of EYPP or other additional funding to support children’s development.
    • A commitment to widening access to early education.

    Here is a reminder of the process to apply for Lewisham 2s Funding

    Children may be eligible for Lewisham 2s from the term after they turn two if they meet certain eligibility criteria.

    The criteria are based on income and other non-income-based criteria such as:

    • The child is looked after by a local authority.
    • The child has an education, health and care plan (EHCP).
    • The child receives disability living allowance
    • The child has left care under a special guardianship order, child arrangements order or adoption order.
    • The family has ‘no recourse to public funds’ and meet the financial threshold criteria.

    Lewisham 2s funding is for 15 hours per week for a total of 38 weeks per year (570 hours per year).

    Children must have a Lewisham Letter of Eligibility to claim the funding and applications should be made to Lewisham Council who will check eligibility and send the letter if the child is eligible. 

    The link to apply for the funding and for further information can be found here:

    Lewisham Council - Free early education for two-year-olds

    Children wishing to access the 15 hours two-year-old funding at a setting located in Lewisham must apply through Lewisham Council, regardless of their home address. If a child is accessing the 15 hours two-year-old funding at a setting in a different local authority, families should contact that local authority to confirm their application process, even if the child lives in Lewisham.

    Once a child is eligible for Lewisham 2s funding, they don’t lose eligibility.  Families don’t need to reconfirm eligibility, and they don’t need a code – they only need to present the Lewisham Letter of Eligibility to their childcare provider, along with proof of date of birth. 

    If a child is claiming 15 hour two-year-old funding with you, then it is quite likely that they will also be eligible for EYPP funding.  EYPP is an extra amount of funding paid to providers on top of the funding rate for eligible children, to a maximum of 15 hours per week per term (or 570 hours per year).  EYPP provides extra support for eligible children and can be used to improve teaching, learning facilities and resources to impact positively on a child’s progress and development.  Parents can consent to EYPP on the Parent Declaration form, or ‘opt out’ if they are eligible for Lewisham 2s, as the EYPP check is done automatically for children eligible for Lewisham 2s.  Please refer to the Portal User Guides for information on how to claim EYPP in the Portal. 

    For further information about two-year-old childcare funding, please see the links below or contact early.entitlements@lewisham.gov.uk

    Help paying for childcare: Free education and childcare for 2 year olds if you get extra support - GOV.UK

    Childcare & Early Years Education - Best Start in Life

    Lewisham Council - Free early education for two-year-olds