Guidance

Care to Learn academic year 2025 to 2026: conditions of grant funding

Published 2 April 2025

Applies to England

1. Introduction

1.1 Legislation

Care to Learn (C2L) funding will be paid by the Secretary of State for Education as a grant under section 14 of the Education Act 2002. In accordance with section 16 of that Act, the Secretary of State attaches the following terms to the grant payable. Any references to ‘we’ or ‘us’ below are to the Department for Education (DfE). Where we refer to ‘you’ this means education institutions (colleges, schools, academies, for example).

1.2 Purpose

C2L provides funding for childcare to help young parents (defined as those aged under 20) continue in education after the birth of a child. The scheme provides funding for childcare whilst the young parent is engaged in a study programme and is not able to provide care for their child. It can also help the young parent with any additional travel costs involved in taking the child to the childcare provider. C2L can also provide funding for childcare whilst young parents are on work placements or industry placements, where these are a defined part of the study programme.

1.3 Period

These conditions of grant cover academic year 2025 to 2026.

1.4 Key points for academic year 2025 to 2026

From academic year 2025 to 2026, the C2L delivery model will change. There will no longer be an external Student Bursary Support Service (SBSS) contractor to process applications and make payments.

You are now responsible for managing applications from students, determining eligibility and the amount of support required for a student and for making payments to childcare providers, based on confirmation of continuing attendance.

When you have completed your application assessments, you will send a funding claim to us in defined claims windows periods, as set out in section 3 below. There will also be an end of year reconciliation process. You must ensure that all claims submitted comply with the rules and conditions in this document.

We recognise there are additional administration activities for you in managing C2L and will pay 5% on top of the total amount claimed to contribute to those costs.

2. Eligibility

To receive C2L in academic year 2025 to 2026, the student, their education institution and childcare provider must all meet the eligibility criteria.

2.1 Types of settings

The following settings are eligible to receive funding provided they meet the criteria set out in this document:

• local authorities – this includes local authority maintained:
  • mainstream schools
  • special schools
  • pupil referral units and hospital schools

 This includes both pre-16 and sixth form provision in these settings:

• academies – this includes:
  • mainstream academies and free schools
  • alternative provision academies
  • studio schools
  • university technical colleges
  • city technology colleges
  • 16 to 19 academies

 This includes sixth form provision in these settings:

• non-maintained special schools (NMSS)
• specialist post 16 Institutions (SPI)
• independent special schools (ISS)
• further education (FE) colleges
• sixth-form colleges
• independent training providers

The setting where the student is studying must have some direct public funding for their study programme. This funding must be paid directly to the education institution for the delivery of the student’s study programme. For most institutions, the funding will be from DfE for 16 to 19 provision.

For the small number of institutions that are not DfE funded for the student’s study programme, other sources of public funding might be from an independent grant administrator of government funding (like the Arts Council or Sports England), a local authority or funding awarded from the National Lottery Community Fund or from charities. 

2.2 The young parent

Age

The young parent must be under 20 years old on the date they start their study programme. Young parents who become 20 years old during their study programme can continue to get funding to the end of that specific study programme, so to the end of the same programme at the same level.

Main carer for the child(ren)

The young parent must be the main carer and in receipt of Child Benefit for the child(ren) for whom they are claiming C2L. If a young parent loses custody of their child(ren), even temporarily, they must notify you immediately. The mother or father of the child can claim C2L as long as:

• the other parent is unable to provide childcare, for example, they are also in education or are absent
• the other parent is not claiming childcare paid through any other source, for example, government funded early years places or Childcare Tax Credits

Living and studying in England

Young parents must be living and studying in England to receive C2L.

A London weighting applies to the scheme. The London weighted maximum is £195 per child per week (the national rate is £180 per child per week). Eligibility for London weighting is determined by the young parent’s home address and applies to the following Boroughs:

• Barking & Dagenham
• Barnet
• Bexley
• Brent
• Bromley
• Camden
• Croydon
• Ealing
• Enfield
• Greenwich
• Hammersmith & Fulham
• Haringey
• Harrow
• Havering
• Hillingdon
• Hounslow
• Islington
• Kensington & Chelsea
• Kingston-upon-Thames
• Lambeth
• Lewisham
• Merton
• Newham
• Redbridge
• Richmond-upon-Thames
• Southwark
• Sutton
• Tower Hamlets
• Waltham Forest
• Wandsworth
• Westminster

Residency

The C2L residency criteria are the same as the residency criteria in the funding rules for post-16 provision. The rules also specify the evidence you must see and retain for audit to confirm eligibility for post-16 funding (and therefore meet the residency criteria for C2L eligibility).

A small number of institutions that do not have other funding from DfE currently access C2L. For these institutions, we have set out a broad summary of the residency criteria below. We also strongly encourage you to review the post-16 funding rules to ensure students meet the criteria and avoid us identifying and recovering funding errors during DfE audits.

In summary only, to be eligible for C2L the young parent must have the legal right to be resident in the UK at the start of their study programme. If a young parent indicates that they are not a British or Irish citizen, they will only be eligible for C2L if one of the following immigration conditions applies:

They are an asylum seeker aged:

• under 18
• 18 or over and a care leaver aged 18 or 19 (they must include an original letter from their local authority that shows their address and confirms they are a care leaver with their application)

They have:

• refugee status
• humanitarian protection
• discretionary leave to remain
• indefinite leave to remain
• indefinite leave to enter
• limited leave to remain
• limited leave to enter
• leave outside the rules

2.3 Study programme

The student’s study programme must have some direct public funding. This funding must be paid directly to the education institution for the delivery of the student’s study programme. For most institutions, the funding will be from DfE for 16 to 19 provision, either paid to the institution directly, or via the relevant local authority. For the small number of institutions not funded by DfE, other sources of public funding might be:

• from an independent grant administrator of government funding (like the Arts Council or Sport England)
• from a local authority or funding awarded from the National Lottery Community Fund
• from charities

These institutions will be required to provide a copy of the agreement between the organisation and the funding body as part of the onboarding process to DfE.

A study programme is a defined programme of activities with a specified duration that leads to a set of outcomes agreed with the student. DfE funded institutions will deliver study programmes by default as this is how and what DfE funding is for. For the small number of non-DfE funded institutions, this definition is vital and you must comply with this for C2L funding to be applicable. It does not mean there must be a formal qualification, but there must be a defined programme of study, and a learning agreement must be in place and agreed between the student and the education institution. We will request information about the study programme and a copy of the agreement as part of the onboarding process to DfE as well as during our audit and assurance checks.

Most students who receive C2L support follow 16 to 19 funded study programmes at DfE funded institutions. These programmes generally last for 1 or 2 years.

A small number of students take part in non-accredited day sessions and short programmes within the community such as first aid, healthy eating, and parenting. These programmes last for a few weeks or months and funding can be from a variety of sources. In all instances where funding is not paid from DfE, either directly or via the relevant local authority, you must have a formal funding agreement with the funding body. We will request evidence of public funding as part of our audit and assurance processes.

Study programme types

Examples of study programmes that young parents receiving C2L are enrolled on include:

• school and college study programmes including GCSEs, A levels, BTECs
• non-accredited day sessions and short programmes such as first aid, healthy eating, and parenting
• FE study programmes in a higher education (HE) institution, including access courses and diplomas
• foundation HE courses where they are followed at an FE institution, for example, a BTEC diploma

The following study programmes are not eligible for C2L:

• privately funded education, so an institution where students are required to pay tuition fees
• voluntary work that is not a required part of an agreed study programme
• apprenticeships, because apprentices are paid by their employer
• HE courses in an HE institution or FE institution, including courses leading to a first degree, HND, HNC, diploma in HE, foundation degree or initial teacher training
• Higher Technical Qualifications (HTQs), except for the very small number of young parents aged 19 but under 20 doing a HTQ funded by an advanced learner loan
• social activities/groups where no actual programme of study takes place
• any instances where a young parent is still looking after their child, for example, while they are undertaking a study programme with a childcare provider and the child is still with the parent

Study programme duration

C2L will provide help with childcare costs for the duration of the student’s study programme. Where students are enrolled on non-accredited, community-based courses like parenting and healthy eating, C2L is only payable for a maximum of 6 months in the academic year. This rule reflects that these courses are designed for short term use to provide a particular set of skills or knowledge and/or to give the young parent the confidence to progress to other education or training. We will request evidence to verify this rule has been complied with as part of our audit and assurance processes.

Study time, work experience and industry placements

Students can claim C2L for independent study time where it is required as part of their study programme to complete coursework, undertake revision or homework. The amount of independent study time that is appropriate must be agreed between you and the student.

C2L will support time needed to undertake work experience and industry placements but only where these have been identified as an integral part of the study programme. You must ensure you include the dates of placements as part of the C2L application and assessment of the amount of support required for the student.

Costs associated with independent study time, work experience and industry placements must be included as part of the C2L weekly maximum amount (£180 per child per week and £195 per child per week in London) – they are not extra.

2.4 Eligibility: childcare provision

C2L only pays for childcare provision that is appropriately registered with Ofsted. It must be registered in one of the following ways:

• on the early years register with either Ofsted or a childminder agency
• on the compulsory and/or voluntary part of the general childcare register with either Ofsted or a childminder agency
• offered by schools (who are exempt from Ofsted registration for children aged 2+) such as school-run breakfast and after school clubs, and holiday care

Information about the different registers can be found on the Ofsted registers.

You have discretion to consider support for specialist provision on the Care Quality Commission’s register on a case-by-case basis if general childcare provision is not suitable for the child.

The childcare provider must provide you with evidence of being registered with Ofsted, including that they are on the correct register for the age of the children they care for. In the case of a school providing childcare, they must provide their unique reference number (URN). Childminder agencies who register with Ofsted on behalf of the childminders they represent must also provide evidence to the institution of their Ofsted registration.

Where a childcare provider is related to the child, the childcare provider must:

• live apart from the child
• be providing registered childcare for other children who are not related at the same time as the child they are related to
• be Ofsted registered

Under no circumstances must C2L funding be paid to any childcare provider that does not meet the specific Ofsted registration requirements. If DfE identifies any misuse of funding through our audit and assurance programme, we will recover all funding.

3. Payments

3.1 The funding claim process

We will operate and manage a funding claims process for C2L. This is different to the application-based process operated by SBSS in previous years.

You will submit your funding claims using your DfE Sign-In account at agreed times in the year.

It is important to emphasise that the dates for each claim window below are indicative and may be subject to change.  We will issue additional communications ahead of each claim window and will update this document later in the year.

Window 1

We expect the first funding claim window to open on 8 September 2025 and close on 12 November 2025. This is the window in which we expect most of you to submit funding claims.

We will pay you in February 2026 (March for academies) after we have completed all checks, validations and quality assurance processes.

We may request additional evidence from you as part of these checks. Checks will include a validation against the individualised learner record (ILR). If you complete the school census, we may request additional information as part of the verification process. You will receive your payment in the same way you get your usual payments from us. The amount you receive will be the total required for the academic year.

If you miss the specified closing date, we will not accept it your claim and you must submit it in the second claims window.

Window 2

We expect the second funding claim window to open on 5 January 2026 and close on 11 February 2026. You will be able to submit any new funding claims in this period.

We will pay you in April 2026 (May for academies) after we have completed all checks and quality assurance processes. As in the first window, we may request additional evidence from you before making a payment. You will receive your payment in the same way you get your usual payments from us.

You must include all the students you have verified as eligible in your funding claim. You must have seen and verified evidence to confirm eligibility for the student, the childcare provider and eligible education (where appropriate). You must assess, and be able to evidence, the actual amount of support each student needs, based on their actual costs and in line with the rules and conditions for the different permitted elements, with the amount you request reflecting that.

If you miss the specified closing date for your funding claim, we will not accept it and you must submit it in the final claims window.

Final window

We expect the third and final window to open on 18 May 2026 and close on 1 July 2026. All institutions must submit data for end of year reconciliation, and you may also submit any late funding claims if you need to.

We may require you to submit supporting evidence for the final outturn figure you report. We will recover all unspent funds. If you fail to submit end of year reconciliation data, we may recover funding in full.

We will action any recovery of funds and make any final additional payments in September 2026 (October for academies).

We will make any recoveries by off-setting them against payments you receive from us. Where the recovery is greater than the payments you receive from us, we may continue to off-set them into future months, or we may issue an invoice for payment.

3.2 Payment summary

Window	Purpose	Dates	Payment
1	Initial claims	September 2025 to November 2025	February 2026 (March for academies)
2	New claims	January 2026 to February 2026	April 2026 (May for academies)
3	Final outturn figures and late claims	May 2026 to July 2026	September 2026 (October for academies)

3.3 Additional duties

Bank account details

It is important you keep your bank account and contact details up to date with us as any discrepancies will impact on payments. You must request a change to your bank account details by completing the online form and send any queries about amending your bank account to: dfe.standingdata@education.gov.uk.

Providers whose source of public funding is not DfE

Institutions whose source of public funding for their education provision is not DfE will be onboarded to DfE systems. Before any access to DfE Sign-In is given, all non-DfE funded providers, whether they have previously accessed C2L via the SBSS or are approaching DfE for access to funding for a student for the first time, will be subject to due diligence checks, including a financial health assessment. We will communicate more information about this process directly to those institutions.

Additional local authority duty

Local authorities will be required to certify that they have passed on the correct amount of funding to schools or, where funding has been spent centrally, that it has been spent in line with these conditions of grant. We will issue a certification form in spring 2026 and 2027 relating to the previous financial year. Local authorities must pass funding on to their maintained schools in a timely manner in line with their scheme for financing schools.

Making payments to childcare providers

You must only make payments for childcare while the student is attending their study programme and the child is in childcare. This rule excludes the summer retainer, where that applies.

You must have robust processes that enable you to monitor and evidence that the student is continuing to attend their study programme, and their child is continuing to be cared for by the specified childcare provider, in line with the agreed number of hours.

You must decide your payment process to childcare providers, but all payments must be made by BACS and subject to continuing attendance by the child and the student. Some childcare providers may require payment in advance, and some may ask for payment after the childcare has been provided. You should consider and make payments as appropriate for the specific childcare provider.

You should use your discretion in the case of any short absences, such as illness or family emergency. You should consider the number and length of absences and the reasons to determine if it is reasonable to continue to make payment. You must record all payment decisions in your auditable records.

C2L payments must cease immediately if a student has stopped attending or has removed their child from childcare. You are responsible for determining the date and amount of any final payment that may be due to the childcare provider.

Your C2L processes must respond to any in-year changes that may arise. For example:

• any changes relating to the student’s residency status
• any changes in travel costs between childcare and home – an increase, decrease or the student needing to claim these later in the year
• changes in childcare arrangements – the number of hours, changes in the provider being used or an additional child requiring childcare, for example
• changes to study programme arrangements/requirements – the number of hours or changing study programme, for example
• for childcare providers – revised childcare fees or a change in bank account details

4. Permitted use of funding

4.1 Childcare payments

C2L will pay towards the cost of childcare up to a maximum of £180 per child per week or up to a maximum of £195 per child per week if the student’s home address is in London.

C2L will support childcare hours in reasonable excess of the study programme hours to allow time for the student’s travel between the education institution and the childcare provider, and for any independent study time undertaken, within the maximum weekly amount. All decisions about the number of childcare hours supported must be taken by the institution, taking account of the specific study programme requirements and location of the student’s home, the institution, and the childcare provider.

Childcare payments must be made to the childcare provider by bank transfer (commonly described as BACS). Under no circumstances other than the specific exception described below should institutions make cash payments or make payments for childcare directly to students or their families.

The only exception to this rule is in an exceptional circumstance where a student has already paid some childcare fees before the institution has fully completed assessment of their C2L application. In this instance, you may reimburse these costs, but only if the childcare meets the eligibility criteria and is within the agreed costs and dates you confirm on completion of your application assessment. You must keep proof of payment for audit purposes, including written agreement between you and the student to confirm the amount, period, and purpose of the funding.

4.2 Travel payments

C2L will pay for travel costs, where appropriate, if these are necessary for the student to take their child(ren) between childcare and home. Travel costs are only paid if they are additional to the student’s normal travel costs from home to the education institution. Travel costs must not be paid where the childcare takes place on the same site as the study programme.

Travel should be by the cheapest means of transport available, this is normally public transport. If the cheapest means is by car, institutions must calculate the amount using a rate of 25p per mile.

The total of the childcare and travel costs must not exceed the C2L maximum weekly amount.

4.3 Deposits and registration fees

C2L can pay deposits of up to a maximum of £250 per child if the childcare provider requires this. Deposits should be paid for from the childcare funding. You must record the amount of any deposit payment recorded in your auditable records.

C2L will also pay any registration fees that are charged by the childcare provider, up to a maximum of £80 per child. This is a one-off payment that does not form part of the weekly maximum rate and will not be paid for subsequent academic years if the student uses the same childcare provision.

4.4 Summer Retainers

Summer retainers can be paid to childcare providers, if required, to hold the childcare place over the summer holiday period. This only applies if a student is finishing study in one year and continuing their study in the next academic year. The young parent and their study programme must continue to meet the eligibility criteria for a summer retainer to be payable.

To be eligible for a summer retainer for summer 2026, the student must:

• have received C2L funding in academic year 2025 to 2026 and be intending to return to the study programme in academic year 2026 to 2027
• be on a study programme that has lasted for 6 weeks or more in academic year 2025 to 2026
• be on a study programme that finishes no earlier than 26 May 2026
• be intending to continue with the same childcare provider they used during academic year 2025 to 2026
• have been using the childcare provider for a minimum of 6 weeks

Summer retainers can be paid for a maximum of 8 weeks with the amount per week not exceeding the C2L weekly maximum rates. If the education institution has a longer summer break than the norm, you have discretion to pay a summer retainer for a further 2 weeks. Evidence to explain the extended payment period must be included in your auditable records, along with evidence to support the amount of summer retainer payment per week.

If you claim summer retainer funding in the first or second claims window, you must be able to evidence your expectation that the student will comply with the funding conditions for summer 2026. You will be required to evidence that the student ultimately did comply at end of year reconciliation. The amount of any summer retainer is excluded from the 5% administrative contribution payment.

4.5 Education institution administration payments

We recognise there are additional administration activities for education institutions in managing C2L payments. We will pay 5% on top of the total amount claimed to contribute to those costs. Any summer retainer payment is excluded from the calculation.

5. Assurance

5.1 Carry forward

Funding paid during academic year 2025 to 2026 may only be used to support the costs of eligible students and childcare, as specified in the permitted use of funding section.

We will operate an end of year reconciliation process for C2L. You must submit information for reconciliation in the third claims window. As noted above, this process will:

• open on 18 May 2026 and close on 1 July 2026 (expected dates, as noted above). We may require you to submit supporting evidence for the final outturn figure you report
• recover all unspent funds in September 2026 (October for academies). Recoveries will be made by off-setting against payments from DfE. Where there are insufficient payments being made, off-setting may continue into future months, or we may issue an invoice for payment

All unspent funds will be recovered. Institutions who submit a claim in the first and/or or second window but who fail to submit a claim in the third window by the deadline will be subject to recovery of C2L funds in full.  

5.2 Institution roles and responsibilities

Education institutions are responsible for managing all aspects of C2L from academic year 2025 to 2026. These responsibilities are outlined below.

1. You should raise awareness of C2L and encourage young parents to apply. For example, some schools and colleges actively raise awareness by including C2L in open day presentations and information packs

2. You must develop, maintain, and update a C2L application form annually to ensure funding rules are reflected and enable students to apply for support from the scheme. This might be a stand-alone application form, or you may wish to integrate C2L into application forms you use to assess eligibility for other 16 to 19 student support schemes, such as the 16 to 19 Bursary Fund and free meals in FE.

3. You must ensure your application form includes questions that are sufficient to assess eligibility for C2L in full and ensure funding you request complies with the conditions to receive it. This includes student age and residency, information about the chosen childcare provider, confirmation of eligible provision, where appropriate. This also includes information to determine the amount of support required for childcare and travel, where the latter is appropriate. Students must complete a new application each academic year to you to enable you to ensure they, their study programme and their chosen childcare provider are eligible

4. Your application process must capture required evidence to verify the student has a child they are the main carer for. This should be confirmation of receipt of Child Benefit for their child. If the student cannot provide this, you must see a copy of their child’s birth certificate and be satisfied that the student is the child’s main carer.

5. Your application process must capture all required evidence to verify that the chosen childcare provider is appropriately Ofsted registered and confirm the childcare fees that are being charged. Initial information can be provided by the student, but you must also obtain evidence directly from the childcare provider. You can search for an Ofsted inspection report to find the unique registration number (URN) for childcare providers. We suggest that evidence/information includes childcare provider business details including the:

• full address
• name/email address and phone number of a contact person
• Ofsted unique registration number (URN) (not the Registered Person (RP) number)
• details of childcare dates, hours /childcare fees charged and bank or building society account details for you to pay them

You must also request a declaration of any potential conflicts of interest between any of the parties involved for example, a family relationship, shared directorship, or shareholding.

1. For institutions whose public funding for the education provision is not DfE, you must ensure it is the student who applies for, and understands that they are, applying for C2L, in the same way as students at any other education institution – the institution must not submit a claim for C2L funding without the young parent’s knowledge and consent.

2. You must develop and maintain appropriate processes for, and relationships with, relevant childcare providers, including making an agreement with them about how and when you will pay them and ensuring they understand the conditions of funding. You need to make payments to childcare providers on a regular basis with continuing payments dependent on confirmation that the student’s child continues to attend the childcare (and the student continues to attend their study programme). If you do not receive confirmation of attendance from the childcare provider, in line with the process you put in place, you must stop payments to them and report the adjusted actual funding you have paid in your end of year reconciliation return.

3. You must maintain attendance records to ensure that continuing C2L payments are subject to the student continuing to attend their study programme (as well as the child attending childcare). If the student stops attending their education provision, even if the child is continuing to attend childcare, you must stop payments to the childcare provider and report the adjusted actual funding in the second funding claim window or in your reconciliation return, as noted above.

4. You must provide support as agreed/assessed through the application process. This includes payment of childcare fees directly to childcare providers and the provision of travel, where appropriate, for any additional cost the student incurs because of taking their child to the childcare provider. Travel support can be provided to students in-kind, by purchasing a bus pass, for example, or by making a payment to the student by BACS. We expect you will wish to use the same approaches for travel support as they do for similar support from the 16 to 19 Bursary Fund.

5. You must use C2L funding appropriately to manage and respond to in-year changes, for example, a student who wishes to change to a different childcare provider, any increases in fees charged for childcare (capped by the weekly maximum rates), any increase or decrease in the number of childcare hours required (again, capped by the weekly maximum rates).

6. You must submit funding claims to us to draw down funding. There are 2 claims windows during the academic year plus a third window, primarily for end of year reconciliation. We will not accept funding claims that miss the closing dates. You must submit the claim in the next available claims window. You should provide support to the student from other funding sources in the interim. You must retain a copy of the information you submit to us as part of your auditable records.

7. You must submit ILR with the students for whom C2L is being claimed being clearly marked with the relevant flag. We will verify funding claims against the flags as part of pre-payment checks. Institutions returning the school census must keep a record of the UPN used in the census for any students for whom C2L funding is claimed. We may request the references as part of our checks.

8. You must manage C2L funding in line with the funding rules and conditions of grant funding in this document, including complying with the end year reconciliation process to report actual spend. We will recover all unspent C2L funds each year.

9. You must maintain auditable records to evidence your application process, eligibility decisions and payments, including your verification of childcare provider eligibility and fees, attendance records and the amount claimed and ultimately paid per student. C2L funding is subject to normal assurance arrangements for 16 to 19 education and training.

5.3 Individualised learner record and school census data

It is important institutions complete the ILR accurately to indicate the numbers of students getting support from C2L. This is done by using the C2L code in the field for learner support reason. You can find more information about the student support codes in the ILR specification for 2025 to 2026.

We will use the ILR as an additional validation as part of the funding claim process. Non-completion may delay your payment.

If you return the school census, you must keep a record of the unique pupil numbers used in the census for any students for whom C2L funding is claimed. We may request those references as part of pre-payment checks.

We recognise that non-DfE funded institutions do not currently complete these returns. We will require you to provide equivalent data in the academic year either through the ILR or an alternative means, and will confirm the details to you separately

5.4 Managing complaints or appeals

Any student or parent who is unhappy with how you have managed their application for C2L or the support that you have provided, must follow your own complaints procedure.

You should manage the escalation of complaints about C2L in the same way as any other complaint you may receive.

We do not have a role in the administration of C2L, except for the payment of funding claims. As such, we do not usually get involved with complaints and you should not routinely advise students or parents to contact DfE. We may get involved if there is an allegation that the C2L eligibility criteria or any content within this guide is being disregarded.

5.5 Inappropriate marketing of C2L

You must not market or promote C2L in any way that induces students to take up support to gain rewards or gifts. You must also be aware of any inappropriate marketing by childcare providers chosen by your students. Examples of inappropriate marketing include:

• offering shopping vouchers if the student joins a course and applies for C2L or chooses a specific childcare provider and/or encourages another student to do so
• offering free driving lessons if the student applies for C2L and attends for a certain period and so on

Any inappropriate marketing activity will be deemed a breach of the conditions of funding and may result in you being required to return any C2L funds that we have paid during the year.

5.6 Other sources of childcare support and C2L

Information about other sources of childcare support is provided on childcare choices, which includes a childcare calculator for parents to compare all the government’s childcare offers and check what works best for their families.

If students are eligible for other childcare support, we expect them to take up any entitlement before applying for funding from C2L, but students may apply for C2L to cover any extra hours (over and above any other funded early education entitlement) to complete their study programme.

5.7 Audit requirements

C2L funds are subject to normal assurance arrangements for 16 to 19 education and training. You must ensure you have appropriate processes in place to record C2L applications and expenditure at student level and how this relates to the claims made to DfE.

This must include:

• a breakdown of the childcare hours, fees charged, types of cost/fees, amounts paid and on what basis
• the amount of any travel support, where applicable, how the support is paid or provided
• a brief justification for each decision made as part of the application assessment process

For childcare costs, you must retain:

• evidence of the amounts and dates payments are made to childcare provider
• copies of documents signed by the childcare provider to evidence their childcare fees, any registration fee that may be payable and their policy and fees for any summer retainer they may charge
• evidence that the childcare provider complies with the Ofsted registration rules and the additional conditions set out in this guide

You must ensure you can evidence your application process, how the student was assessed as eligible, how you made the decision to award the specific amount of support you did based on actual costs for childcare and travel, where applicable, and that you have issued travel support to the student and paid childcare fees to childcare providers. Auditors will be looking for evidence that you have complied with the funding rules and conditions of grant set out in this guide and that you have submitted accurate funding claims to DfE.

You must retain copies of documents the student has signed to give formal agreement to their conditions for payment. This should include understanding that payments are subject to attendance, notifying you promptly of any in year changes that impact on payments and when they need to provide receipts for expenditure for travel (if you are not providing support in-kind). For standard weekly travel costs, it may not be practical to collect receipts for every transaction. If this is the case, you must evidence costs initially by receipts then make payments after that linked to actual attendance, potentially requiring receipts to re-check costs at defined points in the year.

You must retain hard or scanned copies of documentation to support eligibility, and the funding claimed for 6 years. You can keep records electronically. This includes the application form, evidence for additional travel costs and evidence from the childcare provider about fees and hours. This must also include evidence of continuing attendance – though we recognise that DfE funded education institutions will have institution wide attendance monitoring systems and are not expecting anything extra or additional for C2L supported students.

Examples of documentation auditors expect to see include:

• a copy of the funding claim sent to DfE

• evidence showing that the student is eligible, including that you have verified the existence of the student’s child, and that the student is the main carer/responsible for the child

  • this can be evidence of receipt of Child Benefit for the child or a copy of their child’s birth certificate (you must record the birth certificate number or child benefit reference)
  • evidence that you have verified that the student meets the residency criteria as part of your general enrolment checks
• evidence of payments received from DfE, for example remittance advices
• receipts for payments or in-kind support provided to the student for additional travel, where appropriate
• attendance evidence to support payments (both the student attending their study programme and their child attending the agreed childcare)
• evidence to support any in-year changes (changes in childcare provider, changes in childcare rates or hours and so on) and evidence that any summer trainer payment complies with the rules
• evidence that the childcare provider complies with the eligibility conditions, including appropriate Ofsted registration
• agreement between you and the childcare provider/s that includes your payment arrangement, your expectations of them, such as providing you with confirmation of the child’s attendance, that they will notify you of any changes and so on

6. Further information

Books, other documents, and records relating to the recipient’s accounts shall be open to inspection by the Secretary of State and by the Comptroller and Auditor General.

The Comptroller and Auditor General may, under section 6 of the National Audit Act 1983, carry out examinations into the economy, efficiency, and effectiveness with which the recipient has used its resources.

Local authorities and settings shall provide information as may be required by the Secretary of State to determine whether they have complied with these conditions.

7. Variation

The basis for allocation of grant may be varied by the Secretary of State from that set out above, if so requested by the local authority, school or college.

8. Recovery of funding

8.1 Audit and fraud

Scenarios with the potential to cause funding errors, and resulting recovery of funds, include:

• C2L application forms which are not fit for purpose because they do not capture all the necessary evidence to confirm eligibility
• application forms not completed and signed by students each year to allow an assessment of their current needs to be made
• incomplete evidence to support childcare payments
• childcare payments made to ineligible childcare providers (not appropriately Ofsted registered, including registration on an incorrect register for the age of the child, family members and so on)
• additional travel payments made to students when they do not incur any actual additional travel
• payments made that exceed the permitted weekly maximum amounts
• payments made when the student and/or their child is not attending (unless in exceptional, short-term absences you have agreed on a case-by-case basis which must be explained in your records)
• funding being claimed for more than the maximum of 6 months - for non-DfE funded providers

We will recover funds where auditors identify funding errors in any circumstances where you are not able to demonstrate at audit how your students meet the eligibility criteria, that the childcare and/or education provision meet the eligibility criteria, where you do not have sufficient evidence to support payments that  have been made, and in any circumstances where you have claimed funding for duplicate students or in excess of the maximum permitted rates and periods.

We take any concerns relating to financial irregularity or impropriety seriously. We will investigate where we assess those concerns have been raised in good faith and there is sufficient evidence to warrant it. Our complaints procedure and contact details are available on GOV.UK.

If a local authority or setting fails to comply with the terms and conditions set out in this document, the Secretary of State may recover some or all the C2L grant that has been paid. This will be notified in writing to the local authority or setting.

You are responsible for investigating instances of fraud relating to childcare provision and/or childcare rates charged. If you find evidence that misleading or fraudulent information has been knowingly submitted, either by the childcare provider or by a student or parent, resulting in C2L payments being made inappropriately, you must attempt to recover the overpayment from the childcare provider or student, as appropriate. You may also refer the matter to the police, and this could result in prosecution.

Institutions that identify significant fraud must report it to us. Significant fraud may involve one or more of the following:

• the particulars of the fraud are novel, unusual, systemic, or complex
• there is likely to be great public interest because of the nature of the fraud or the people involved

9. Enquiries

For queries relating to these terms and conditions, please use our customer help portal.

Any education institution whose source of direct public funding is not DfE and who has not accessed C2L funding during academic year 2024 to 2025, should contact us via the customer help portal if you have students you believe may be eligible.  All non-DfE funded institutions will be subject to due diligence checks, including a financial health assessment, before any access is given.