Cost of Childcare UK 2026 — What Parents Actually Pay
Complete guide to UK childcare costs. Nursery fees, childminder rates, nanny costs, and all the ways to reduce what you pay through government schemes.
Salary and income data is based on ONS and other official UK statistical sources. Figures are averages and may not reflect your individual circumstances.
Contents
Childcare is one of the biggest costs for working families. Here’s what you’ll pay and how to reduce it.
Average Childcare Costs
Nursery Costs
Child Age
Part-Time (25 hrs)
Full-Time (50 hrs)
Under 2
£650-£1,000/month
£1,000-£1,600/month
Age 2
£600-£950/month
£950-£1,400/month
Age 3-4
£500-£800/month
£850-£1,200/month
By Region
Region
Average Full-Time (Under 2)
London (Inner)
£1,400-£2,000/month
London (Outer)
£1,200-£1,600/month
South East
£1,100-£1,400/month
South West
£950-£1,200/month
Midlands
£900-£1,100/month
North
£850-£1,050/month
Scotland
£900-£1,100/month
Wales
£850-£1,000/month
Other Childcare Types
Type
Typical Hourly
Full-Time Monthly
Childminder
£5-£8
£800-£1,200
Nanny (gross)
£12-£18
£2,000-£3,500
Nanny share
£6-£9 per family
£1,000-£1,800
Au pair
£80-£140/week
£320-£560 (plus board)
Free Childcare Hours
Universal Entitlement
Age
Hours
Who For
3-4 years
15 hours/week
All children
Term-time
38 weeks/year
570 hours total
Stretched
Can spread over year
Fewer hours, more weeks
Working Parents Entitlement
As of September 2025, the rollout of expanded free childcare is complete: all eligible working parents get 30 hours/week, from the term after their child turns 9 months old right through to school age — not the smaller, age-tiered amounts that applied during the phased 2024/25 rollout.
Age
Hours
Eligibility
9 months to school age
30 hours/week
Working parents (fully rolled out from September 2025)
Eligibility for Working Parents Hours
Requirement
Details
Both parents working
Or one if single parent
Minimum earnings
Equivalent of 16 hrs/week at National Living Wage — approximately £10,575/year each as of April 2026 (rises each April with the NLW; confirm current figure at childcarechoices.gov.uk)
Maximum earnings
Under £100,000/year each
Not using Tax Credits childcare
Check which is better
Value of Free Hours
Free Hours
Annual Value (at £6/hr, illustrative)
15 hours/week, term-time
£3,420
30 hours/week, term-time
£6,840
Stretched over 52 weeks
Same total, spread
Tax-Free Childcare
How It Works
Feature
Details
You pay
Into government childcare account
Government adds
20% top-up
Maximum top-up
£2,000/year per child
You contribute
£8,000 to get £2,000 bonus
Eligibility
Requirement
Details
Both parents working
Minimum ~£10,575/year each (2026, 16 hrs at National Living Wage — check current figure)
Maximum income
Under £100,000 each
Child age
Under 12 (or 17 if disabled)
Not using Tax Credits
Choose one scheme
What It Covers
Covered
Not Covered
Nursery
Informal childcare
Childminder
Family (unless registered)
After-school clubs
School fees
Holiday clubs
Food/activity costs separately
Nanny (if registered)
—
Example Savings
You Pay Annually
Government Adds
Total for Childcare
£8,000
£2,000
£10,000
£4,000
£1,000
£5,000
£2,000
£500
£2,500
Childcare Vouchers (Legacy)
If You Already Have Them
Feature
Details
Closed to new joiners
Since October 2018
Keep if already enrolled
Can continue using
Tax-free amount
Up to £55/week (basic rate)
Compare
May be better than Tax-Free Childcare
Which Is Better?
Tax-Free Childcare
Childcare Vouchers (if enrolled)
20% bonus regardless of tax band
Higher rate taxpayers save 40%
More flexible
Less flexible
Higher maximum
Lower maximum
Better for: most people
Better for: higher earners already enrolled
Universal Credit Childcare
If You’re on Universal Credit
Feature
Details
Covers
Up to 85% of childcare costs
Maximum (1 child)
£1,071.09/month (2026/27)
Maximum (2+ children)
£1,836.16/month (2026/27)
Must be
Working and using registered childcare
How It Works
Step
What Happens
Pay upfront
You pay childcare provider
Report costs
Through UC journal
Reimbursement
Up to 85% in next payment
Compare with Tax-Free Childcare
Universal Credit Childcare
Tax-Free Childcare
85% covered
20% bonus
Paid arrears
Pay into account
For UC claimants
For higher earners
Can’t use both
Choose one
Reducing Childcare Costs
Maximising Free Hours
Strategy
Benefit
Apply for 30 hours
If eligible, big saving
Check 2-year-old funding
If eligible
Use all hours
Don’t leave any unused
Stretched hours
May suit better
Other Savings
Strategy
Potential Saving
Term-time only jobs
Reduces childcare need
Flexible/part-time work
Fewer childcare days
Grandparent help
Free (if available)
Working from home
May reduce hours needed
Shift working
One parent always home
Childminder vs Nursery
Factor
Consider
Cost
Childminders often cheaper
Hours
May be more flexible
Siblings
Often discount for multiple children
Free hours
Apply at both
Applying for Support
How to Apply
Scheme
How
Free childcare hours
gov.uk childcare service
Tax-Free Childcare
gov.uk childcare account
Universal Credit help
Through UC journal
What You Need
Information
Why
National Insurance numbers
Both parents
Employer details
To verify working
Estimated annual income
Eligibility check
Child’s date of birth
Determines entitlements
Reconfirming
Scheme
How Often
30 hours free
Every 3 months
Tax-Free Childcare
Every 3 months
UC childcare
Report when costs change
Summary: Childcare Costs Quick Reference
Typical Costs
Type
Monthly (Full-Time)
Nursery (under 2)
£1,000-£1,600
Nursery (age 2)
£950-£1,400
Nursery (age 3-4)
£850-£1,200
Childminder
£800-£1,200
Nanny
£2,000-£3,500
Help Available
Scheme
Benefit
15 hours (universal, 3-4, all children)
£3,000+/year
30 hours (working parents, 9 months to school age)
£6,000+/year
Tax-Free Childcare
Up to £2,000/year
UC childcare element
Up to 85% covered
Checklist
Action
Done
Calculate childcare needs
☐
Check free hours eligibility
☐
Compare Tax-Free Childcare vs UC
☐
Apply for government schemes
☐
Reconfirm every 3 months
☐
Key Dates
Age
Entitlement
9 months to school age
30 hours/week (working parents, fully rolled out since September 2025)
3-4 years
15 hours/week (universal, all children regardless of parental work status)
Childcare is expensive, but government schemes can significantly reduce costs. Always check eligibility and apply for everything you’re entitled to.