Stretched vs Term-Time Funding: Which Option Is Better for You?
By Clear Nursery Fees Team · 9 March 2026
When you register for 30 funded hours, most nurseries will ask whether you want "term-time" or "stretched" funding. Many parents pick one at random or take the nursery's default. The choice can make a meaningful difference to your monthly bill and weekly hours.
How the maths works
The 30-hour entitlement gives you 30 hours per week across 38 funded weeks per year:
30 hours x 38 weeks = 1,140 hours per year
That is the total. Both options use the same 1,140 hours; they just distribute them differently.
Term-time funding delivers 30 funded hours per week across 38 school term weeks (1,140 hours/year). Sessions during school holidays are billed at the nursery's full commercial rate.
Stretched funding spreads those same 1,140 hours across the full year the nursery operates (typically 51 weeks), giving approximately 22.4 funded hours per week with a consistent monthly bill year-round.
Term-time funding: 30 hours per week for 38 weeks. During school holidays, you have no funded hours and pay the full commercial rate for any sessions you use.
Stretched funding: 1,140 hours divided across the full year your nursery operates, typically 51 weeks. 1,140 / 51 = approximately 22.4 hours per week, every week of the year.
A monthly bill comparison
Assume a nursery charging £12 per hour commercially, operating 51 weeks per year, and your child attends 40 hours per week.
Term-time scenario:
- During term (38 weeks): 30 funded hours covered, 10 paid hours per week at £12 = £120/week = £456/month averaged over term
- During holidays (13 weeks): all 40 hours paid at £12 = £480/week = approximately £1,920 for 13 weeks
Annual paid total: (10 hours x £12 x 38) + (40 hours x £12 x 13) = £4,560 + £6,240 = £10,800
Stretched funding scenario:
- 22.4 funded hours per week, 51 weeks per year
- Remaining paid hours: 40 - 22.4 = 17.6 hours per week at £12
Annual paid total: 17.6 x £12 x 51 = £10,771
The annual totals are almost identical. They would be identical if the maths divided evenly. The difference is in the monthly cash flow:
| Month | Term-time bill | Stretched bill |
|---|---|---|
| Term week | ~£480/month | ~£845/month |
| School holiday week | ~£1,920/month | ~£845/month |
| Difference | Spike in August | Flat all year |
Stretched funding smooths your bill across the year. Term-time funding gives you more funded hours per week during term but produces large spikes during school holidays.
Which is better by working pattern?
| Your situation | Better option | Why |
|---|---|---|
| You work during holidays and need full-time care year-round | Stretched | Avoids large holiday bills, consistent cash flow |
| You or your partner takes annual leave during school holidays and reduces nursery days | Term-time | You only pay the holiday spike for fewer sessions |
| You plan to send your child to a childminder or family in holidays | Term-time | No funded hours needed in holidays anyway |
| You are on a tight monthly budget and prefer predictable bills | Stretched | Same amount every month |
| Your child starts school next September and holidays will be short-term | Term-time | Maximise weekly hours now; stretched benefit is long-term |
What to check with your nursery
Not all nurseries offer stretched funding. It requires the nursery to claim from the LA on a different schedule and some smaller settings do not support it. Ask before you enrol:
- Do you offer stretched funding?
- What is the exact stretched hours per week you offer? (The maths means it is not always exactly 22 hours; some nurseries round to 22 or 23.)
- Can I switch between term-time and stretched if my circumstances change? (Most LAs allow a change once per term.)
The calculator
The Clear Nursery Fees calculator lets you toggle between term-time and stretched funding and shows the monthly bill for each option based on your nursery's rate and your LA's EYNFF funding rate.