Childcare Costs Calculator UK 2025 | Free Hours
Calculate your childcare costs and savings from free hours, Tax-Free Childcare, and Universal Credit support.
Calculate Your Childcare Costs
Average UK Childcare Costs 2025
Childcare in the UK remains among the most expensive in the developed world, consuming a significant proportion of household income for families with young children. The 2025 expansion of free childcare hours represents the most significant government intervention in decades.
| Type of Care | Average Outside London (per hour) | Average London (per hour) | Full-time monthly cost |
|---|---|---|---|
| Nursery / Day Nursery | £6.50 - £8.50 | £9.00 - £12.00 | £1,300 - £2,000 |
| Childminder | £5.00 - £7.50 | £7.00 - £10.00 | £1,000 - £1,600 |
| Nanny (sole charge) | £12 - £16 | £15 - £22 | £2,000 - £3,500 |
| After-School Club | £5.00 - £8.00 | £7.00 - £11.00 | £350 - £600 |
| Holiday Club | £25 - £45/day | £35 - £60/day | £600 - £1,200 (6 weeks) |
Free Childcare Hours Entitlement 2025
The UK government's expansion of free childcare represents significant savings for eligible families:
Universal 15 Hours (3-4 year olds)
All 3 and 4 year olds are entitled to 15 free hours per week (570 hours per year) regardless of parental income or employment status. Worth approximately £4,500-£6,500/year depending on local rates.
Working Parent 30 Hours (3-4 year olds)
Eligible working parents can access 30 free hours per week (1,140 hours/year). Both parents (or single parent) must earn at least £9,518/year each and no more than £100,000 each. Worth £9,000-£13,000/year.
Extended Free Hours (9m - 2 years)
From September 2024, working parents of children aged 9 months to 3 years are entitled to 15 free hours per week. From September 2025, this extends to 30 hours for eligible families.
2-Year-Old Free Hours
All 2-year-olds in England are entitled to 15 free hours per week from April 2024 (previously limited to disadvantaged families). This is worth approximately £4,500-£6,000/year at average nursery rates.
Government Support Schemes 2025
Tax-Free Childcare
Open a TFC account at childcare.gov.uk. For every £8 you add, the government adds £2. Maximum government contribution: £500 per quarter (£2,000/year) per child, or £1,000/quarter for disabled children. Cannot be combined with Tax Credits or UC childcare element.
Universal Credit Childcare Element
UC covers 85% of childcare costs for working claimants. Maximum: £1,014.63/month for one child, £1,739.37/month for two+ children. Must be in work or starting work within one month. More generous than TFC for lower-income families.
Employer-Supported Childcare
If you joined an employer childcare voucher scheme before October 2018, you can continue to use it (up to £55/week exempt from tax and NI for basic rate taxpayers). New entrants can no longer join this scheme. Salary sacrifice childcare arrangements may still be available through some employers.
Disability Living Allowance
Children with disabilities or serious health conditions may qualify for DLA (up to £108.55/week for care + £73.75/week mobility in 2025). This can supplement childcare costs for families of disabled children. Eligible families also receive higher TFC top-up (£1,000/quarter).
How to Reduce Your Childcare Costs
- Claim all free hours you are entitled to - check your eligibility at childcare.gov.uk every 3 months (working parent hours must be reconfirmed quarterly)
- Open a Tax-Free Childcare account - if you are not claiming UC or Tax Credits, this saves 20% on all childcare costs up to £2,000/year per child
- Consider a childminder - typically 10-30% cheaper than nurseries, often more flexible hours
- Shared nanny arrangements - splitting a nanny with another family can reduce individual costs to near nursery levels while providing more personalised care
- Stagger working hours - if both parents can adjust schedules to overlap childcare less, total hours of paid care can be reduced
- Holiday clubs vs private nursery in holidays - for school-age children, holiday clubs (£25-£45/day) are often much cheaper than private nursery settings
Frequently Asked Questions
How much does a nursery cost per month in the UK?
The average full-time nursery in the UK costs £1,300 to £1,800 per month for children under 3 in 2025, before any free hours. In London, costs reach £2,000 to £2,500 per month. Part-time care (25 hours/week) typically costs £700 to £1,100 per month. The expanded free childcare entitlement from September 2024 significantly reduces these costs for eligible working parents.
What free childcare hours are available in 2025?
In 2025: 15 hours/week for all 3-4 year olds; 30 hours/week for 3-4 year olds with working parents; 15 hours for children aged 9 months to 2 years (working parents, from April/September 2024); 30 hours extended to 9 month to 4 year olds for eligible working parents from September 2025. Working parent threshold: both parents must earn at least £9,518/year (equivalent to 16 hours at National Living Wage) and no more than £100,000 each.
How does Tax-Free Childcare work?
For every £8 you pay into your Tax-Free Childcare account, the government adds £2, up to £500 per quarter (£2,000/year) per child. This effectively gives you a 20% discount on childcare costs. You can use TFC with any Ofsted-registered provider. You cannot use TFC if you receive Tax Credits or Universal Credit childcare element. Apply through childcare.gov.uk using your Government Gateway login.
How much childcare support does Universal Credit provide?
Universal Credit covers 85% of eligible childcare costs. The maximum monthly support is £1,014.63 for one child or £1,739.37 for two or more children (2025 rates). You must be in work or starting work within one month. Unlike TFC, UC childcare element can be received alongside other UC elements, making it more valuable for lower-income working families. You cannot claim both UC childcare and Tax-Free Childcare simultaneously.
What is the difference between a nursery and a childminder?
Nurseries are group care settings (typically 6-30 children per room) in dedicated premises with structured activities. Average cost: £6.50-£10/hour. Childminders care for children in their own home, with a maximum of 6 children under 8. They offer a more home-like environment with smaller groups. Average cost: £5-£8/hour outside London. Both are Ofsted-regulated and can offer funded free hours.
Can I use free hours with any childcare provider?
Free childcare hours can be used with any Ofsted-registered provider that has signed up to deliver the funded entitlement. This includes nurseries, childminders, pre-schools, and some after-school clubs. Providers cannot charge for the free hours themselves, but may charge for extra sessions, meals, and consumables. Check providers' "top-up" policies as some charge compulsory fees that effectively reduce the value of the free hours.
When does the expanded free childcare entitlement start?
Phase-in schedule: April 2024 - 15 free hours for eligible 2-year-olds (previously all 2-year-olds); September 2024 - 15 free hours for eligible children aged 9 months to 2 years; September 2025 - 30 hours extended to all eligible children aged 9 months to 4 years. Eligibility requires working parents to earn at least £9,518/year each and no more than £100,000/year each. Check eligibility and apply at childcare.gov.uk.
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