Grace period
The time you can keep your working-parent funded hours after you stop being eligible, for example after losing a job
By The Toddly editorial team · Last updated 11 November 2026
If you no longer meet the rules when you reconfirm your working-parent childcare code, perhaps because your income has dropped or you have stopped working, your funded hours do not stop at once. A grace period lets your child keep the place for a while so you have time to find work or arrange other care. The exact end date depends on when your eligibility changed in relation to the school terms, and HMRC tells you the date. Check gov.uk or your council for how it applies to you.