Childcare Costs & Support Calculator UK 2025/26
Childcare in the UK costs an average of £1,100-£1,500/month for under-2s in England. But significant government support is available: free childcare hours, Tax-Free Childcare (20% top-up), and Univers
Childcare Support in England 2025/26
Free Childcare Hours Entitlement
| Child's age | Free hours | Eligibility |
|---|---|---|
| 9 months – 2 years | 15 hours/week (38 weeks) | Both parents working (or single parent), earning equivalent of 16 hours at NMW up to £100,000 income |
| 2-year-olds | 15 hours/week (38 weeks) | Universal, from April 2024 expanded to working parents as above |
| 3-4-year-olds | 15 hours/week (38 weeks) | All children — no eligibility test |
| 3-4-year-olds (working parents) | 30 hours/week (38 weeks) | Working parents, earning equivalent of 16 hours at NMW up to £100,000 |
Tax-Free Childcare (TFC)
- Government tops up your savings by 25% (government pays £2 for every £8 you pay)
- Maximum government top-up: £2,000/year per child (£500/quarter)
- For disabled children: £4,000/year
- Eligibility: both parents working, earning over £1 equivalent NMW/week, under £100,000 each
- Applied via childcare account — pay childcare provider from the account
Universal Credit Childcare Element
If you're on Universal Credit: claim back up to 85% of eligible childcare costs (max £1,014.63/month for one child, £1,739.37 for two+ children). The UC childcare element is paid in arrears — you may need to pay upfront and claim back.
Frequently Asked Questions
What free childcare hours am I entitled to in 2025/26?
From September 2024: 15 hours/week for eligible 9-month to 2-year-olds (working parents). All 2-year-olds: 15 hours. All 3-4-year-olds: 15 hours. Working parents of 3-4-year-olds: 30 hours. 'Working' means earning equivalent of 16 hours at NMW (£195.36/week), each parent. Income must be under £100,000 each.
How does Tax-Free Childcare work?
Open a childcare account on gov.uk/tax-free-childcare. Pay in money yourself — government adds 25% on top. For every £8 you pay in, you get £10 to spend on childcare. Maximum government contribution: £500/quarter (£2,000/year) per child, or £1,000/quarter for disabled children. Use at any approved provider.
Can I use Tax-Free Childcare and free hours together?
Yes. You can use Tax-Free Childcare for costs above your free hours entitlement. For example: child attends 50 hours/week, gets 30 free hours — pay for the remaining 20 hours using Tax-Free Childcare (with 25% government top-up).
What is the 30-hour free childcare income limit?
Each parent must earn at least the equivalent of 16 hours at NMW (£12.21/hour): £195.36/week or £10,158.72/year. Each parent must also earn less than £100,000 adjusted net income. Self-employed parents use expected income for the current year.
How much does childcare cost on average in the UK?
2025 averages: Nursery (under 2s): £1,300-£1,600/month (full-time, 50 hours/week). Childminder: £800-£1,000/month (full-time). After-school club: £10-£20/session. Holiday club: £40-£80/day. London and Southeast significantly higher. These are private rates before free hours entitlement.
What is the Universal Credit childcare element?
If you're on Universal Credit and working, claim back up to 85% of registered childcare costs. Limits: one child — up to £1,014.63/month; two or more children — up to £1,739.37/month. Must pay upfront and claim back the following month. Also available to those transitioning off Tax Credits.
Can I still use childcare vouchers in 2025/26?
Employer childcare vouchers (Childcare Voucher Scheme) closed to new entrants in October 2018. If you joined before then, you can still use them. Vouchers give basic rate employees (20%) up to £55/week exempt from tax and NI = up to £933 saving/year. They cannot be used alongside Tax-Free Childcare.
Is there a childcare tax credit?
Working Tax Credit includes a childcare element for eligible families (childcare costs must be 70% covered up to £300/week for 1 child, £500/week for 2+ children). Tax Credits are being replaced by Universal Credit. Check eligibility via gov.uk/childcare-calculator. These overlap with TFC — you can only use one scheme at a time.