UK Childcare Calculator 2026

Working families in England with children aged 9 months to 4 years can save up to £7,500 per year per child according to DfE estimates.

For example, a family using nursery care in Birmingham (£268/week for under-2s) would pay £13,936 for 52 weeks without funding.

With 30 funded hours (38 weeks), they'd save approximately £8,184 per year.

However, savings depend on your region's costs and whether you can find a provider offering funded places at the standard rate.

No. These schemes are mutually exclusive. You must choose one or the other.

Tax-Free Childcare gives you up to £2,000/year per child (£4,000 for SEND children) but requires you to be working and not on Universal Credit.

Universal Credit childcare element reimburses 85% of childcare costs up to £1,071.09/month for one child or £1,836.16/month for two+ children, but you must be on Universal Credit.

Generally, Tax-Free Childcare is better for higher earners not on Universal Credit, while the UC childcare element is better for those on Universal Credit with high childcare costs.

Childcare is devolved to Scotland, Wales, and Northern Ireland. Scotland has chosen a different approach focused on universal provision rather than working-parent criteria.

Scotland provides universal 1,140 hours/year for all 3-4 year olds regardless of parental work status, but has no plans to extend this to under-3s like England's working-parent expansion.

The Scottish Government has indicated that expanding to under-3s would require significant additional funding that is not currently available.

For England's 30-hour scheme, both parents (or the single parent) must earn at least £195/week but not more than £100,000 adjusted net income per year.

This includes:

• Employees on PAYE
• Self-employed people
• People on maternity, paternity, shared parental, adoption or sick leave
• People starting employment within the next 31 days

The £195/week minimum equals: £10,140/year or about 15.3 hours/week at National Living Wage (£12.71/hour from 1 April 2026).

Different rules apply in Scotland, Wales, and Northern Ireland for their respective schemes.

England: Apply through GOV.UK's online service. You'll need your National Insurance number, partner's details (if applicable), and information about your income.

Scotland: Contact your local authority. Each council manages applications for 1,140 hours differently.

Wales: Apply through your local authority for the Childcare Offer for Wales.

Northern Ireland: Contact your local Health and Social Care Trust for NICSS applications.

Apply at least 6-8 weeks before you need the funding to start, as processing times vary. You'll receive a code to give to your chosen provider.

Term-time: 30 hours/week for 38 weeks = 1,140 hours/year. You get the full 30 hours during school terms but nothing during holidays.

Stretched: 1,140 hours spread over 51 weeks = about 22 hours/week year-round (allowing for provider closure weeks).

Many providers offer stretching to help working parents who need year-round care. This gives you fewer hours per week but avoids the school holiday childcare gap.

Not all providers offer stretching, and policies vary. Ask your preferred provider what options they offer before applying.

Often, no. Funded hours are paid to providers at government rates, which are typically lower than market rates.

For 2026-27, England's funding rates are:

• Under 2s: £7.95/hour
• 2 year olds: £7.95/hour
• 3-4 year olds: £5.62/hour

Many providers charge "top-up fees" to cover the difference between government funding and their actual costs. However, providers cannot charge compulsory top-ups - they must offer the funded hours for free.

Some providers may ask for voluntary contributions, but these must be genuinely optional.

No. Only approved providers registered with Ofsted (or Care Inspectorate in Scotland) can offer funded places.

This includes:

• Registered nurseries and pre-schools
• Registered childminders
• Some maintained school nurseries
• Some academy and free school nurseries

Not eligible: Nannies, au pairs, unregistered childminders, or family members cannot offer funded hours.

Check with your local authority for a list of funded providers in your area, as not all registered providers choose to offer funded places.

You must report changes to HMRC within 3 months. Your eligibility will be rechecked every 3 months (reconfirmation).

If you become ineligible: You have a "grace period" to find alternative arrangements. This is usually until the end of the current term plus one additional term.

Common changes that affect eligibility:

• Job loss or reduced hours
• Starting Universal Credit
• Income rising above £100,000
• Separation or new partnership

If you fail to report changes or miss reconfirmation deadlines, your funding may stop immediately.

SEND children get additional support:

Tax-Free Childcare: SEND children can receive up to £4,000/year (double the normal £2,000 limit) and the scheme runs until age 17 instead of 11.

Disability Access Fund: One-off annual payment of £828 (2026-27 rate) for children with SEND who receive funded hours.

SEND Inclusion Fund: Additional funding for providers to support children with lower-level SEND needs in funded settings.

EHCP Support: Children with Education, Health and Care Plans may get additional 1:1 support funding through their local authority.

Contact your local authority's SEND team for guidance on accessing additional support.

Funded hours should be genuinely free, but providers may charge for:

Legitimate additional charges:

• Meals and snacks
• Additional hours beyond the funded entitlement
• Optional extras like trips or specialist classes
• Consumables like nappies, sun cream, stationery

Not allowed: Compulsory top-up fees, registration fees for funded hours only, deposits for funded hours, or "voluntary" contributions that aren't genuinely optional.

If you're being charged inappropriately, contact your local authority. They regulate funded providers and can investigate complaints.

Yes, but with practical limitations. You can split your funded hours between up to 2 providers per child.

Example: 15 hours at nursery + 15 hours at childminder, or 20 hours at nursery + 10 hours at after-school club.

Challenges:

• Both providers must be willing to offer part-time funded places
• You need to coordinate applications and codes with both providers
• Transport between settings during the day
• Different policies, procedures, and term dates

Many families find it simpler to use one main provider for funded hours and pay privately for wraparound care.

Childminders are typically £50-80/week cheaper than nurseries according to Coram 2026 data, but the gap varies significantly by region.

Nursery advantages: More structured learning, peer interaction, specialist facilities, backup staff coverage.

Childminder advantages: Lower cost, smaller group sizes, home environment, often more flexible hours, mixed-age learning.

London example (2026): Nursery £451/week vs childminder £386/week for under-2s = £3,380/year saving with childminder.

North East example: Nursery £234/week vs childminder £198/week = £1,872/year saving.

Both can offer funded hours if registered with Ofsted, so your choice often comes down to availability, location, and personal preference.

Wales offers more hours but with tighter restrictions:

Childcare Offer for Wales: 30 hours/week for 48 weeks = 1,440 hours/year (compared to England's 1,140 hours/year).

However: Only available for 3-4 year olds (England now covers 9 months to 4 years), and both parents must work at least 16 hours/week earning minimum wage.

Flying Start: Additional support for 2-3 year olds in disadvantaged areas, offering 12.5-16 hours/week depending on circumstances.

Wales has maintained its focus on 3-4 year olds while England has expanded to younger children. Welsh parents of under-3s have fewer funded options than their English counterparts.

This is the biggest challenge for working parents using funded hours. If you take term-time funding, you get nothing during the 14 weeks of school holidays.

Your options:

• Stretched hours: Take 22 hours/week year-round instead
• Holiday clubs: Pay separately for holiday childcare
• Family care: Grandparents, other family, or friends
• Holiday pay: Some employers offer extra annual leave
• Split arrangements: Different solutions for different holidays

Cost impact: Holiday childcare can cost £200-400/week, potentially adding £2,800-5,600/year to your childcare budget.

This is why many working parents prefer stretched hours despite getting fewer hours per week.

Multiple factors drive regional cost differences:

Property costs: London nursery rents can be £50,000+/year compared to £15,000/year in the North East.

Staff costs: London weighting, higher wages to attract staff, and expensive qualifications all increase costs.

Demand pressure: More dual-income households with higher salaries can afford premium rates, pushing up market prices.

Cost comparison (under-2 nursery, 2026):

• London: £451/week (£23,464/year)
• North East: £234/week (£12,176/year)
• Difference: £11,288/year

Government funding rates don't fully account for these regional differences, so London providers often charge higher top-up fees.

Choose Tax-Free Childcare. Childcare vouchers closed to new applicants in 2018 and Tax-Free Childcare is better in almost all cases.

Tax-Free Childcare: Up to £2,000/year per child (£4,000 for SEND), runs until child is 11 (17 for SEND), and you can use it with any registered provider.

Legacy vouchers: Maximum £243/month (basic rate taxpayer) or £124/month (higher rate), only until child is 15, and not all providers accept vouchers.

If you're already on vouchers: You can stay on them until your child turns 15, but you can't switch between schemes. Calculate which works better for your specific situation.

Example: Higher rate taxpayer with £1,000/month childcare costs saves £124/month with vouchers vs £167/month with Tax-Free Childcare.

Several schemes can help with the transition back to work:

Early years funding: If your child is 9+ months old and you're returning to work in England, you may qualify for 30 funded hours immediately.

Tax-Free Childcare: You can apply while on maternity leave if you're returning within 31 days. Start building up credit in your account before you return.

Flexible working: All employees can request flexible working from day one. Consider compressed hours, part-time work, or working from home to reduce childcare needs.

Shared parental leave: Split leave with your partner to stagger returns and reduce immediate childcare needs.

Employer support: Many larger employers offer nursery places, childcare subsidies, or enhanced maternity packages.