Childcare Costs Guide: Options, Costs & Government Help
Childcare Costs by Type
Nursery (full-time): £900-1,500/month (£1,500-2,500 in London). The most popular option for under-5s.
Childminder: £700-1,200/month. More flexible hours, smaller groups, home-based setting.
Nanny: £1,500-3,000/month (gross). Comes to your home. Most expensive but most convenient, especially with multiple children.
Au pair: £350-500/month plus room and board. Part-time help, not a full childcare solution.
Government Support
15 hours free (universal): All 3-4 year olds get 15 hours/week free childcare (38 weeks/year). From April 2024, extended to 2 year olds, and from September 2025 to 9-month-olds.
30 hours free: Working parents earning under £100,000 each get 30 hours/week free for 3-4 year olds.
Tax-Free Childcare: Government tops up your childcare payments by 25%. Pay £8, get £10. Maximum £2,000/year per child (£4,000 for disabled children). Available for children under 12.
Childcare vouchers: Closed to new applicants but existing users can continue. Worth up to £55/week tax and NI free.
Is It Worth Working?
For many families, childcare costs mean one parent's salary barely covers the fees. But consider: pension contributions continue, career progression isn't interrupted, and free hours kick in from age 2-3. Use our childcare cost calculator to compare scenarios.
Tips to Reduce Costs
Share a nanny with another family. Use grandparents for one day. Compress working hours to reduce days needed. Maximise all government schemes.
Related Calculators
Frequently Asked Questions
How much is full-time nursery in the UK?
Full-time nursery costs £900-1,500/month outside London and £1,500-2,500 in London. The average is around £1,100/month, making it one of the biggest household expenses for young families.
What is tax-free childcare and how does it work?
The government tops up your childcare payments by 25% — for every £8 you pay in, you get £10. Maximum bonus is £2,000/year per child. Both parents must work and earn under £100,000 each.