UK Childcare Cost Calculator

Full-time nursery costs in the UK range from approximately £1,050 to £1,500 per month depending on location. London averages £1,400-1,500 per month for full-time care, the South East around £1,200, and other regions £1,000-1,100. Part-time nursery (typically 2-3 days) costs 40-60% less. These figures are before any government free hours or Tax-Free Childcare deductions.

Since September 2025, working parents in England get 30 funded hours a week from the age of 9 months until their child starts school. This replaced the older system of 15 hours for eligible two-year-olds and 30 hours only from age three. Every parent in the household must be working and each must expect to earn at least £203.36 a week — 16 hours at the £12.71 National Living Wage, roughly £10,575 a year — and neither parent can expect to earn £100,000 or more. The entitlement covers 38 weeks a year (term time). Many providers will stretch the same total of hours across all 52 weeks at fewer hours per week, which is why this calculator values the funded hours over 38 weeks and then averages the saving across the year. Scotland, Wales and Northern Ireland run their own schemes.

Tax-Free Childcare is a government scheme where for every £8 you pay into an online childcare account, the government adds £2 — a 20% top-up worth up to £2,000 per child per year (£500 per quarter). This is available for children under 12 (or 17 if disabled). Every parent must be working and each must expect to earn at least £203.36 a week, about £10,575 a year, and less than £100,000 each. You cannot claim Tax-Free Childcare and childcare vouchers at the same time, and you cannot claim it alongside the Universal Credit childcare element.

Childminders typically cost 10-15% less than nurseries. In London, a full-time childminder averages £300 per week versus £350 for nursery. Outside London, childminders average £230-260 per week versus £260-300 for nursery. Childminders offer more flexible hours, often covering early mornings and evenings, which suits parents with non-standard working hours.

For one child, nursery is significantly cheaper than a nanny. However, for two or more children, a nanny can become comparable or even cheaper than two nursery places. A nanny in London costs approximately £500 per week regardless of the number of children, while two nursery places would cost £700. Nannies also offer flexibility, sick child care and no holiday closure days.

Au pairs receive pocket money of £100-150 per week rather than a salary. They typically work 25-30 hours per week and live with the family. Additional costs include food, a private room and potentially language school fees. The total cost is approximately £500-700 per month including food. Au pairs are not suitable as sole childcarers for children under 2 and are not Ofsted-registered.

Apply through the Childcare Choices website (childcarechoices.gov.uk) or the HMRC Childcare Service. You will need to create a Government Gateway account. After confirming eligibility, you receive a code to give to your childcare provider. Reconfirmation is required every 3 months. Apply at least 6 weeks before you need the free hours to ensure the code is active in time.

Childcare is not a deductible business expense for sole traders or limited company directors. However, a limited company can provide workplace nursery places as a tax-free benefit. Tax-Free Childcare and funded hours are available regardless of employment type. Self-employed parents qualify for funded hours if they meet the same minimum earnings test as employees — about £10,575 a year — and newly self-employed parents get a start-up period during which the minimum does not apply.

Holiday clubs typically cost £30-60 per day, or £150-300 per week. This is relevant once children start school and no longer attend full-time nursery. With 13 weeks of school holidays per year, holiday childcare can cost £1,950-3,900 annually. Many working parents use a combination of annual leave, grandparents and holiday clubs to manage costs.

Yes, dramatically. Once a child starts reception (age 4-5), full-time childcare costs drop to before and after school care (typically £10-15 per session) plus holiday cover. Annual childcare costs typically fall from £10,000-15,000 to £3,000-5,000. However, the transition can be gradual as many children start with half days for the first term.