Daily Junction.mobi portalNews · July 6, 2026 · Daily Junction Editorial Team · 8 min
UK childcare costs £14,000 per year for full-time nursery — here's what free hours you get, how much you'll pay, and how to reduce the cost.
UK childcare is among the most expensive in the world, costing parents an average of £14,000 per year for full-time nursery (50 hours per week), rising to £19,000 in London. For many families, childcare costs more than rent or a mortgage, and it is a major barrier to parents (especially mothers) returning to work. The government offers free childcare hours for 2–4 year olds and Tax-Free Childcare (20% back on costs), but these do not cover the full cost, and many parents struggle to afford childcare. Here is everything you need to know about UK childcare costs — what you get for free, what you pay, and how to reduce the cost.
Average costs for full-time nursery (50 hours per week, 52 weeks per year):
| Region | Cost per year |
|---|---|
| England (average) | £14,000 |
| London | £19,000 |
| South East | £15,500 |
| North East | £10,500 |
Average costs for part-time nursery (25 hours per week):
| Region | Cost per year |
|---|---|
| England (average) | £7,000 |
| London | £9,500 |
Childminders (who care for children in their own homes) are usually cheaper than nurseries:
Nannies (who care for children in your home) are the most expensive option:
The government offers free childcare hours for 2–4 year olds in England.
All 3–4 year olds get 15 free hours per week (38 weeks per year, term-time only). This is available from the term after the child turns 3.
Working parents of 3–4 year olds get 30 free hours per week (38 weeks per year, term-time only).
To qualify, both parents must:
From April 2024, working parents of 2 year olds get 15 free hours per week (38 weeks per year, term-time only).
The same eligibility criteria apply as for 3–4 year olds.
2 year olds from low-income families get 15 free hours per week if their parents receive:
From September 2024, working parents of 9-month to 2-year-olds will get 15 free hours per week (38 weeks per year, term-time only).
This is part of the government's plan to expand free childcare to all working parents of children aged 9 months to 4 years by 2025.
Tax-Free Childcare is a government scheme that gives you 20% back on childcare costs, up to £2,000 per child per year (or £4,000 for disabled children).
You open a Tax-Free Childcare account online. For every £8 you pay in, the government adds £2 (20%). You can then use the money to pay for registered childcare (nurseries, childminders, after-school clubs, holiday clubs).
To qualify, you must:
If you pay £10,000 per year for childcare, you pay £8,000 into your Tax-Free Childcare account, and the government adds £2,000. This saves you £2,000 per year.
If you receive Universal Credit and are working, you can claim back up to 85% of childcare costs, up to:
You pay for childcare upfront, then claim it back through your Universal Credit payment. The money is paid in arrears (the month after you pay for childcare).
To qualify, you must:
Childcare Vouchers were a salary sacrifice scheme where employers gave employees vouchers to pay for childcare, saving tax and National Insurance.
The scheme closed to new entrants in October 2018, but if you were already in the scheme, you can continue using it.
Childcare Vouchers saved up to £933 per year (basic-rate taxpayer) or £1,196 per year (higher-rate taxpayer).
UK childcare is in crisis:
UK childcare costs are among the highest in the world. The OECD estimates that UK parents spend 30% of their income on childcare (for two children in full-time care), compared to 10% in France and 5% in Sweden.
High costs force many parents (especially mothers) to:
Childcare providers (nurseries, childminders) are struggling with:
As a result, many providers are:
The UK spends 0.6% of GDP on childcare support, compared to 1.2% in France and 1.4% in Sweden. This means UK parents bear most of the cost, while in other countries, the government subsidises childcare more heavily.
The government has promised to expand free childcare to all working parents of 9-month to 4-year-olds by 2025, but providers say the funding is not enough to deliver this without closures and quality cuts.
Make sure you claim all the free hours you are entitled to (15 or 30 hours for 3–4 year olds, 15 hours for 2 year olds from April 2024).
If you are eligible, Tax-Free Childcare gives you 20% back (max £2,000 per child per year). This is better than Childcare Vouchers for most people.
If you receive Universal Credit and are working, claim back up to 85% of childcare costs.
Childminders are usually cheaper than nurseries (£10,000–£12,000 per year vs £14,000–£19,000).
Grandparents, relatives, or friends can provide informal childcare for free (or for a small contribution). But they cannot be paid if you want to use Tax-Free Childcare or Universal Credit childcare support (unless they are registered childminders).
Work part-time, work from home, or stagger working hours with your partner to reduce childcare hours.
Some employers offer:
After-school clubs (£10–£15 per session) and holiday clubs (£30–£50 per day) are cheaper than full-time nursery.
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