Question 1

How much does nursery cost in the UK?

Accepted Answer

UK nursery costs average £60-£80 per day for a child under 2, and £50-£70 per day for 2-4 year olds (2024). London and the South East are typically 30-40% higher. Full-time nursery (50 weeks) costs £15,000-£20,000+ per year before free hours entitlement. 15-30 free hours per week are available from age 9 months depending on eligibility.

Question 2

What is Tax-Free Childcare and how much can I save?

Accepted Answer

Tax-Free Childcare gives a 20% government top-up on childcare costs up to £10,000 per child per year, saving up to £2,000/year (£4,000 for disabled children). You pay £8 into an HMRC childcare account and the government adds £2. Both parents must work at least 16 hours per week and earn under £100,000 each.

Question 3

Is a nanny cheaper than nursery?

Accepted Answer

For one child, nursery is usually cheaper than a nanny. For two or more children at the same time, a nanny typically becomes cost-effective as the nanny cost is shared across children. A nanny costs £30,000-£50,000 in salary plus employer NI (~£3,500) and holiday pay, totalling £35,000-£55,000/year before any tax-free childcare savings.

Question 4

Are these child care tools free?

Accepted Answer

Yes - completely free, no sign-up required. Results export to CSV or PDF.

Free Child Care Tools & Calculators

Child care calculators that show the true cost and what help you can get

Child Care Tools - FAQ