From April, the funding for nurseries, out-of-school clubs, and childcare for disabled children will rise from £500 to £1,000. Childminders will be eligible for £500, up from £250.
The grant has been opened up to businesses that have been trading less than 12 months. Previously only those that were intending to start a business within the next six months were eligible to apply.
Since last September, the funding has also been available for those starting childminder agencies.
The anouncement follows confirmation from George Osborne in the Autumn Statement that the total funding for the scheme would double to £2m for the financial year 2015-16.
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