Free childcare entitlements and model agreement: guidance
Updated 9 February 2026
Applies to England
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Free entitlements
Free entitlements can be claimed for:
- children eligible for Early Learning for 2-year-olds (15 hours)
- all children aged 3 and 4 years old (15 hours)
- children aged 9 months old to 4 years old of eligible working parents and carers (30 hours – for children aged 2 to 4 years this can be combined with either of the above entitlements to a maximum of 30 hours)
The eligibility criteria for the entitlements are set out in legislation, including 1(2) of the Childcare Act 2016 and section 7 of the Childcare Act 2006 and associated regulations.
Model agreement guidance
The ‘Model agreement template: free early years provision and childcare’ has been developed for local authorities to use in their provider agreements, to improve consistency and to share examples of good practice.
It has been developed to be flexible and is not a ‘one size fits all’ agreement. Local authorities will need to tailor their agreements to local processes as appropriate.
Local authorities should consider the additional guidance within the Model agreement template and consider using the example text provided as a basis for their own agreements.
Local authorities should review the Model agreement template and consider incorporating relevant elements into their agreements to meet their own local needs. Local authorities should assure themselves that the requirements they include in their provider agreements enable them to meet their statutory duties in respect of delivering the early education and childcare entitlements. They should support achieving the outcomes set out in the Early education and childcare statutory guidance for local authorities.
The Early education and childcare statutory guidance for local authorities explains that local authorities are required by legislation to limit the requirements they place on any provider or childminder agency to those set out in A4.12.
Local authorities should work in partnership with providers to ensure that free place are high quality, flexible and accessible. Local authorities should work with providers on how the agreement will be set out, to ensure that providers’ concerns are addressed as far as possible.
The Model agreement template is drafted from the perspective of a local authority setting out its requirements on childcare providers delivering the early education and childcare entitlements.
Provider agreement requirements
The expected headings and core wording set out in the Model agreement template should be used in every provider agreement where possible. The additional guidance for local authorities and example text in the Model agreement template is for local authorities to consider and adapt.
The following provisions should also be included in an agreement:
- a right to unilaterally vary the agreement to reflect changes in legislation and guidance from the Department for Education
- a clause stating that references to legislation will apply to the legislation as amended, without this constituting significant changes to the agreement
- freedom of information (FOI) provisions
- termination and enforcement clauses that cover all stages
- an obligation to comply with all relevant legislation
- a clause regarding the use of personal and sensitive data in compliance with the Data Protection Act 2018
- an obligation for providers to take out and maintain adequate levels of insurance
- funding obligations, including how funding must be accounted and recorded for audit purposes
- a clear process for resolving any disputes
Local authority responsibilities
Local authorities must have regard to any guidance given from time to time by the Secretary of State when carrying out their duties to secure that free childcare is available. This is set out in section 7(3) of the Childcare Act 2006 and regulation 49 of the Childcare (Free of Charge for Working Parents) (England) Regulations 2022.
Unless they have good reason not to, local authorities should use the Model agreement template as a tool to develop their agreements with providers.