What is a funded hours stretch offer?

A funded hours stretch offer (also called a stretched offer) is an arrangement where a childcare provider delivers the annual entitlement of funded hours spread across more weeks than the standard 38-week term-time model.

The standard entitlement gives 15 or 30 hours per week for 38 weeks per year. A stretched version might give approximately 11 or 22 hours per week over 52 weeks, keeping the total annual hours the same (570 or 1,140 hours).

Not all providers offer a stretched model — it requires the provider to negotiate the arrangement with their local authority and to manage cash flow across a full year rather than receiving payment in three term-time tranches.

For parents who need year-round childcare (rather than term-time only), a stretched offer can reduce the cost of holiday childcare significantly because the funded hours are available throughout the year. For parents who only need childcare during school terms, the standard model typically gives more hours per week when they need them.

Parents should check with their provider and local authority whether a stretched offer is available, as it varies by LA and provider.

One important note: the weekly hour reduction in a stretch model means if your child is only in childcare for part of the year, you may end up with fewer useful funded hours than on the standard model. Calculating total annual costs under both models is worthwhile before committing.