The cost of childcare takes up a large chunk of the family budget. If you’re planning to return to work, it’s essential to budget carefully for your childcare costs and claim all the help that’s available.
- How much does childcare cost?
- Part-time childcare costs
- Full-time childcare costs
- Informal or free childcare
- Stay-at-home parent
- Help with childcare costs
How much does childcare cost?
In Britain, the average cost of sending a child under two to nursery is:
- £122.46 per week - part time
- £232.84 per week - full time
The cost of childcare varies depending on the type of childcare and your location.
The tables below give you an idea of how much different childcare might cost on average if your children are too young to qualify for free early years education (England only).
Part-time childcare costs
| Type of childcare | How much does it cost? (British average) | How much does it cost? (London average) |
|---|---|---|
| Registered childminder (25 hours for a child under 2) | £107.41 per week | £145.42 per week |
| Day nursery (25 hours for a child under 2) | £122.46 per week | £164.50 per week |
| Part-time nanny (25 hours) | £263-£434 per week including tax and NI contributions | |
| Au pair | ‘Pocket money’ of around £70-£85 per week plus room and board |
Source: Childminder and nursery costs from Family and Childcare Trust, 2018; Part-time nanny wages from Nannyplus.co.uk; Au pair pocket money rates from GOV.UK
Full-time childcare costs
| Type of childcare | How much does it cost? (Britain average) | How much does it cost? (London average) |
|---|---|---|
| Registered childminder (50 hours for a child under 2) | £217.30 per week | £284.21 per week |
| Day nursery (50 hours for a child under 2) | £232.84 per week | £305.92 per week |
| Live-in nanny (50 hours) | £434 - £718 per week plus:
|
£433 per week plus:
|
| Daily nanny (50 hours) | £512 per week plus:
|
£616 per week plus:
|
Source: Childminder and nursery costs from Family and Childcare Trust, 2018.
Informal or free childcare
| Type of childcare | How much does it cost? |
|---|---|
| Playgroup or pre-school | £5-£10 per 3-hour session |
| Sure Start Children’s Centre | Depends on your household income - some play sessions can be free |
| Nursery school | Free if it’s part of the state school system |
| Family arrangement | Can be free. But if you intend to pay a family member for childcare, you might not qualify for help with childcare costs. |
| Shared childcare arrangement | Technically free, but you’ll need to factor in loss of income, and you won’t get any government help. |
Source: Netmums playgroup/pre-school costs
Stay-at-home parent
Whether you choose to work full time or part time or be a stay at home parent is a very personal decision.
There are a wide range of aspects to consider. One is the impact on income and costs both now and in the future.
Use our Budget planner to find out how childcare costs affect your income.
There’s help available when you have a baby, including benefits and grants from the government and your employer. So find out what you can claim.
Taking time off from a career can impact your future employment options and earning potential.
Here are some sites that could help you debate the pros and cons, Netmums, Babycentre, Mumsnet.
Help with childcare costs
You don’t need to be on a low income to get help with childcare costs.
You might be able to get help from:
- your employer - in the form of childcare vouchers or direct payment for childcare
- the government - as the childcare element of Working Tax Credit, Universal Credit or the Tax-Free Childcare scheme
Free early education or childcare
All three and four-year-olds in the UK are entitled to some free early education or childcare.
How much you can get depends on where you live.
England
All three and four-year-olds can get 570 hours of free early education or childcare every year.
Most people take this as 15 hours each week for 38 weeks.
You can use these free hours at:
- nurseries and nursery classes
- playgroups and pre-schools
- registered childminders
- sure Start Children’s Centres
A further 15 hours is available bringing the total to 30 hours each week, for families where:
· both parents are working (or the sole parent is working in a lone-parent family), and
· each parent earns the equivalent of 16 hours a week at the national minimum or living wage, and earns less than £100,000 a year.
Scotland
Three and four-year-olds can get 600 hours of free early learning and childcare every year.
This works out at around 16 hours every week for 38 weeks.
Some families with two-year-olds might also qualify if they receive certain benefits.
Wales
Three and four-year-olds can get 10 hours of free early education a week for 38 weeks.
If you live in a Flying Start area you might be able to get free part-time childcare when your child is two.
Northern Ireland
Children are entitled to at least 12.5 hours of free pre-school education a week for 38 weeks in the year before they start Primary One.
This article is provided by the Money Advice Service.
