Calculate Your Childcare Costs
UK Childcare Costs 2025/26: What to Expect
Childcare costs in the United Kingdom remain among the highest in the developed world. The type of care, your child's age, where you live, and how many hours you need all have a major bearing on the bill your family faces each month.
Nursery Costs
| Child Age | London (monthly) | Outside London (monthly) |
|---|---|---|
| Under 2 years (full-time) | £1,100–£1,600 | £700–£1,100 |
| 2–3 years (full-time) | £1,000–£1,500 | £650–£1,000 |
| 3–4 years after free hours | £500–£900 | £300–£600 |
| 4–5 years after free hours | £300–£700 | £100–£400 |
Childminder Costs
| Care Type | Typical Monthly Cost |
|---|---|
| Part-time (up to 20 hrs/week) | £300–£600/month |
| Full-time (40+ hrs/week) | £700–£1,200/month |
Nanny Costs
A nanny is the most expensive childcare option but can be cost-effective for families with two or more children. You pay a gross salary and also employer's National Insurance (13.8% above the secondary threshold of approximately £9,100/year).
| Location | Gross Monthly Cost | Employer NI (approx) |
|---|---|---|
| London | £2,000–£3,500/month | +£150–£310/month |
| Rest of UK | £1,500–£2,500/month | +£100–£200/month |
After-School and Holiday Club Costs
- Breakfast club: £5–£10 per session
- After-school club: £50–£150 per week
- Holiday club: £25–£50 per day
- Summer holiday camp: £150–£300 per week
Government Childcare Help: What's Available in 2026
The UK government offers three main schemes to help families with childcare costs. Understanding each one and whether you qualify can save thousands of pounds every year.
1. Free Childcare Hours
All 3 and 4-year-olds are entitled to 15 free hours per week for 38 weeks per year (570 hours per year). Working parents of 3 and 4-year-olds are entitled to 30 hours per week. From September 2024, the offer was expanded to include working parents of 2-year-olds (15 hours) and 9–23-month-olds (15 hours). By September 2025, working parents of 2-year-olds will receive 30 hours.
2. Tax-Free Childcare
For every £8 you deposit into your Tax-Free Childcare account, the government adds £2 — effectively a 20% top-up on up to £10,000 per child per year. The maximum government contribution is £2,000 per child per year (£4,000 for disabled children). You must be working and earning under £100,000 adjusted income.
3. Universal Credit Childcare Support
If you're claiming Universal Credit and in work, you can claim back up to 85% of eligible childcare costs each month. The maximum is £1,014.63/month for one child or £1,739.37/month for two or more children. This is generally better value than Tax-Free Childcare for lower-income families, but you cannot use both simultaneously.
How Much Government Help Can I Get?
The combination of free hours and Tax-Free Childcare can dramatically reduce your childcare bill. Here's an example:
- Family with a 3-year-old in full-time nursery (50 hrs/week) in the Midlands
- Gross nursery cost before help: £900/month
- 30 free hours reduce this by approximately £450/month
- Remaining £450 goes through Tax-Free Childcare: costs £360, government adds £90
- Net monthly cost: £360 — a saving of £540/month (60% reduction)
Childcare Costs by Age: Why Under-2s Are Most Expensive
Childcare is most expensive for babies and toddlers under 2. This is because nurseries must maintain a 1:3 staff-to-child ratio for this age group under Ofsted requirements, compared to 1:4 for 2-year-olds and 1:8 for 3 and 4-year-olds. The staffing cost is simply higher per child.
Once your child reaches 3 and you can access 30 free hours, the effective cost of nursery can fall dramatically. Many families who chose a childminder for the early years then switch to nursery school or a school-based setting once free hours kick in.
Scotland, Wales and Northern Ireland
Scotland: All 3 and 4-year-olds and eligible 2-year-olds receive 1,140 hours per year (equivalent to 30 hours per week for 38 weeks). There is no income test for 3 and 4-year-olds. This is significantly more generous than the rest of the UK.
Wales: The Flying Start programme offers free childcare to eligible under-4s in deprived areas. Universal 10 free hours per week applies from age 3. Welsh government has been expanding provision.
Northern Ireland: Pre-school education offers 12.5 hours per week term-time in the preschool year. This is less extensive than England or Scotland.
Tips to Reduce Childcare Costs
- Apply for free hours as soon as your child becomes eligible — don't wait, as there can be waiting lists
- Open a Tax-Free Childcare account even before your child starts nursery to build up funds
- Consider childminders, who are often cheaper than nurseries and offer more flexible hours
- Nanny-shares with a neighbour or friend can halve nanny costs
- Use holiday and breakfast clubs (Ofsted-registered) — they're cheaper and can be paid with Tax-Free Childcare funds
- Check if your employer offers salary sacrifice arrangements for childcare
- If on Universal Credit, childcare support is usually worth more than Tax-Free Childcare
Childcare Cost Calculator: Frequently Asked Questions
How much is nursery in the UK in 2026?
UK nursery costs vary enormously by location and age. In London, full-time nursery for an under-2 averages £1,100–£1,600 per month. Outside London, expect £700–£1,100 per month. For 3–4 year olds using free hours, London costs fall to £500–£900 and outside London to £300–£600 per month. These figures are based on the Coram Family and Childcare Survey 2024 and typical market rates.
Is a childminder cheaper than a nursery?
For most age groups and hours, yes. A full-time childminder typically costs £700–£1,200/month compared to £700–£1,600 for a nursery. Childminders are also more flexible with hours and often provide a more home-like environment. However, nurseries generally offer more structured learning environments and are less affected by illness (childminders who are sick cannot work). Both can accept free hours and Tax-Free Childcare.
What is the cheapest legal childcare option in the UK?
For school-age children, Ofsted-registered after-school and breakfast clubs are typically the cheapest option at £50–£150/week. For pre-school children, using your full free hours entitlement with a childminder or council nursery is usually cheapest. Many council-run nurseries and Children's Centres charge at or near cost price, which can be lower than private nurseries.
Do I pay nursery costs in the school holidays?
Most private nurseries are open 51 weeks per year and charge year-round regardless of school term dates, because they are not term-time settings. Free childcare hours are only available for 38 weeks per year (term-time) unless your provider offers a "stretched" option spreading hours over 52 weeks at a lower weekly amount. Always check your nursery's holiday policy before signing a contract.
Can I claim childcare costs on Universal Credit and Tax-Free Childcare?
No. You cannot claim Universal Credit childcare support and Tax-Free Childcare at the same time. For families on Universal Credit, the UC childcare element (85% of eligible costs) is almost always more valuable than Tax-Free Childcare (20% top-up). Check both options using the government's childcare calculator at childcarechoices.gov.uk.
Does my employer have to help with childcare costs?
Employers are not legally required to contribute to childcare costs, but many offer salary sacrifice pension arrangements which can be structured to reduce net pay and therefore childcare costs for UC claimants. Some employers also offer enhanced maternity/paternity pay and access to corporate childcare search tools. The old employer-supported childcare voucher scheme closed to new entrants in October 2018, though those already enrolled can continue.
How do I find a good nursery or childminder near me?
Use the Ofsted Find an Inspector report search at reports.ofsted.gov.uk to check ratings for any registered childcare provider. Your local council's Family Information Service (FIS) can provide lists of registered childminders and nurseries in your area. Word of mouth, local Facebook groups and Childcare.co.uk are also popular resources. Always visit in person, check current inspection reports, and speak to other parents before registering your child.