Childcare Calculator UK 2025

The average cost of full-time nursery care in the UK is £269 per week for a child under 2, which equates to around £14,000 per year. However, costs vary significantly by region - Inner London averages over £370 per week, while the North East averages around £230. Childminders typically cost 10-20% less than nurseries, while nannies cost significantly more but offer one-to-one care.

Tax-Free Childcare is a government scheme where for every £8 you pay into an online account, the government adds £2 - up to £2,000 per child per year (or £4,000 for disabled children). To be eligible, both parents must be working and earning at least £2,379 per year (equivalent to 16 hours at National Minimum Wage), but neither parent can earn over £100,000. You cannot use Tax-Free Childcare if you receive Tax Credits, Universal Credit, or childcare vouchers.

To get 30 hours free childcare for your 3 or 4 year old, both parents (or one parent in single-parent households) must be working at least 16 hours per week and earning below £100,000 each. You need to apply through the government's Childcare Service and will receive an eligibility code to give to your childcare provider. The entitlement starts from the term after your child turns 3 and after you receive your eligibility code.

The 15 hours universal entitlement is available to ALL 3-4 year olds, regardless of whether parents work. The additional 15 hours (making 30 total) is only available to working families where both parents work at least 16 hours per week and earn under £100,000 each. The 15 hours universal entitlement is also available for some 2 year olds from disadvantaged backgrounds or on certain benefits.

Yes! You can use Tax-Free Childcare alongside the 30 hours free childcare entitlement. This is a great way to reduce costs further. For example, if your nursery charges for 50 hours per week, you'd get 30 hours free and could use Tax-Free Childcare to help pay for the remaining 20 hours, plus any additional fees like meals, nappies, or activities that aren't covered by the free hours.

On average, nurseries are more expensive than childminders. A full-time nursery place for an under 2 costs around £269/week nationally, while a childminder costs around £243/week. However, this varies by region and individual provider. Childminders often offer more flexible hours and a home-like environment, while nurseries typically have more structured educational activities and are available year-round with no cover needed for holidays.

Childcare for under 2s is more expensive due to legal staff-to-child ratio requirements. In England, nurseries must have 1 staff member for every 3 children under 2 (1:3 ratio), compared to 1:4 for 2 year olds and 1:8 for children aged 3 and over. This means nurseries need more staff to care for younger children, increasing costs significantly. The difference can be 15-25% higher for under 2s compared to over 3s.

The government is expanding free childcare to younger children. From April 2024, working parents of 2 year olds can access 15 free hours per week. From September 2024, this extends to children from 9 months old. By September 2025, eligible working parents will be able to access 30 free hours from when their child is 9 months until they start school. This could save families thousands of pounds per year.

If you receive Universal Credit, you can claim back up to 85% of your childcare costs, up to a maximum of £1,014.63 per month for one child or £1,739.37 for two or more children. You must be working (or have an offer of work starting within 31 days) and use registered childcare. Note that you cannot claim Universal Credit childcare support alongside Tax-Free Childcare - you must choose one or the other.

Yes, au pairs are significantly cheaper than nannies. An au pair typically receives £85-£150 per week in pocket money, plus accommodation and food. A nanny costs £400-£700+ per week in salary alone, plus employer's National Insurance and pension contributions. However, au pairs can only work up to 30 hours per week and are not qualified childcarers - they're typically young people wanting to experience life in another country while providing some childcare help.

Our childcare calculator uses average costs from the 2024 Coram Family and Childcare Survey and official government support thresholds. It provides a good estimate for budgeting purposes, but actual costs vary significantly between providers, even in the same area. We recommend using this calculator to get a ballpark figure, then contacting local providers for accurate quotes. Government support eligibility is based on published criteria but final eligibility is determined by the official Childcare Service.

The free hours cover basic childcare and early education only. Providers can charge additional fees for meals, snacks, nappies, sun cream, consumables, trips, and activities. Some providers also charge for "extras" like yoga, music classes, or forest school sessions. Additionally, if you need more than 38 weeks of care per year (the free hours are term-time only), you'll need to pay for the additional weeks, though some providers let you "stretch" your hours across more weeks.