Answers to the most common questions about UK childcare costs and government support
All three and four-year-olds in England are entitled to 15 hours of free early education per week for 38 weeks of the year, regardless of family income or working status. This is a universal entitlement.
Additionally, some two-year-olds are eligible for 15 free hours if their family receives certain benefits such as Income Support, Jobseeker's Allowance, or Universal Credit with a household income below approximately £15,400 per year. Children in local authority care, those with an Education, Health and Care (EHC) plan, and children receiving Disability Living Allowance are also eligible.
Since 2024, working parents of children aged from nine months are also entitled to 15 free hours, subject to meeting the same eligibility criteria as the 30-hour entitlement (earning at least the equivalent of 16 hours at National Minimum Wage, but not more than £100,000 per year).
To qualify for 30 hours, both parents (or the sole parent in a single-parent household) must be in work and each earn at least the equivalent of 16 hours per week at the National Minimum Wage. For 2026, this means each parent must earn approximately £183 per week or more. Neither parent can earn more than £100,000 per year. If you are in a couple and one parent does not work, you will not qualify for the 30-hour entitlement, though you will still receive the universal 15 hours for three and four-year-olds.
Free hours can be used with any Ofsted-registered provider that has agreed to offer government-funded places. This includes nurseries, childminders, and pre-schools. Not all providers choose to offer funded places, so check with your preferred provider before relying on this. Some providers may also charge for extras such as meals, nappies, and outings, which are not covered by the free hours funding.
You apply online through the government's Childcare Choices website at childcarechoices.gov.uk. You will need to create a childcare account, provide details about your employment and income, and verify your identity. The application process typically takes around 20 minutes. Once approved, you can start paying into your account immediately, and the government will add the 20% top-up automatically.
You must reconfirm your eligibility every three months. If you miss a reconfirmation deadline, your account will be suspended until you reconfirm, though any money already in the account remains available.
Yes, self-employed parents can qualify for Tax-Free Childcare. You need to expect to earn at least £183 per week on average over the coming three months (equivalent to 16 hours at National Minimum Wage). If you have only recently become self-employed, there is a start-up period of up to 12 months during which you do not need to meet the minimum income requirement. You must still not earn more than £100,000 per year from your self-employment and any other income combined.
The childcare voucher scheme closed to new applicants in October 2018, but existing users can continue. For most families, Tax-Free Childcare provides greater savings, especially if your childcare costs exceed £9,000 per year per child. However, higher-rate taxpayers who are still on vouchers may find vouchers more beneficial, as the tax saving is proportionally higher. It is worth calculating both options using our childcare calculator before making a switch, as you cannot rejoin the voucher scheme once you leave.
You can keep your Tax-Free Childcare account open while on maternity, paternity, shared parental, or adoption leave, provided you were eligible before your leave started. You have up to 31 days after your pay or leave ends to reconfirm your eligibility. If your partner is still working and meets the eligibility criteria, your account can remain active throughout your leave period. However, if neither parent is working, eligibility may be affected.
Childcare for babies (under two years old) typically costs 10-20% more than for older children. This is because the staff-to-child ratio requirements are stricter for younger children. For under-twos, the ratio is one member of staff to every three children, compared to one to four for two-year-olds and one to eight for three to four-year-olds. In a typical nursery, you might pay £300 per week for a baby place compared to £260 per week for a toddler place, though this varies significantly by region.
Generally, yes. Childminders tend to charge around 10-15% less than nurseries on average, though this varies by area. A full-time childminder place might cost £225-£275 per week compared to £275-£325 for a nursery. However, the cost difference narrows in some areas, and childminders may charge extras for outings and activities. The decision should not be based solely on cost; consider the type of environment and care style that suits your child best.
Many nurseries do offer sibling discounts, typically ranging from 5% to 15% off the fee for the second child. However, this is at the discretion of each individual provider and is not a legal requirement. Some nurseries offer a flat weekly discount rather than a percentage. Always ask about sibling discounts when visiting potential providers, and get the discount confirmed in writing as part of your contract.
Nanny sharing involves two families employing one nanny to look after their children together, either in one family's home or alternating between both homes. Each family typically pays around 60-70% of a sole-charge nanny's rate, making it significantly cheaper than employing a nanny on your own. Both families are employers of the nanny and share responsibility for tax and National Insurance payments. The arrangement requires clear communication and a written nanny share agreement covering working hours, holidays, sick pay, and what happens if one family no longer needs the arrangement.
If your child is in a term-time-only setting, you will need to arrange alternative childcare during school holidays. Options include holiday clubs (which typically cost £30-£60 per day), holiday childminders, or informal care from family members. Some nurseries and childminders operate year-round and include holiday care in their fees. If you use Tax-Free Childcare, you can use your account to pay for holiday clubs and other registered holiday childcare providers.
Yes, there is additional support available for families with disabled children. Tax-Free Childcare provides up to £4,000 per year for disabled children (double the standard amount), and the age limit extends to 16 rather than 11. The Disability Living Allowance or Personal Independence Payment for your child does not count towards income when assessing your eligibility. Additionally, some local authorities offer extra funding for children with special educational needs and disabilities (SEND) to access early years settings. Contact your local authority's Family Information Service for details of what is available in your area.
The government's employer-supported childcare voucher scheme closed to new entrants in October 2018, but some employers continue to offer their own workplace nurseries or childcare support as part of their benefits package. Workplace nurseries are exempt from tax and National Insurance, making them a very tax-efficient benefit. Some employers also offer emergency childcare services, childcare referral services, or flexible working arrangements to help parents manage childcare. Check with your HR department to find out what your employer offers.
Use our free calculator to estimate your weekly and monthly childcare costs and find out how much you could save with Tax-Free Childcare.
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