Childcare is one of the largest expenses for families in the UK, often surpassing rent, mortgage payments and even food!
In this guide, we will break down the average childcare costs in the UK, examine the factors that influence these costs, and provide practical tips to help you manage childcare expenses without sacrificing quality.
The Average Cost of Childcare in the UK
The cost of childcare in the UK varies based on a number of factors, including the type of care you choose, your location, and the age of your child.
According to the Coram Family and Childcare Trust's 2023 Childcare Survey, the cost of childcare continues to rise, with the average weekly cost for a part-time nursery place for a child under two now at £148, which equates to approximately £7,696 per year for part-time care.
These figures vary significantly depending on where you live, with Londoners often paying up to 25% more than those in rural areas. For example, parents in inner London pay an average of £178.56 per week for part-time nursery care, while in the East Midlands, parents may pay as little as £104.81.
Factors That Affect Childcare Costs
Several factors influence the cost of childcare, and understanding these can help parents make more informed decisions. Here’s a deeper dive into the main variables that affect childcare prices:
1. Type of Care
The type of childcare you choose has a significant impact on the cost...
For example:
- Nurseries, which are highly regulated and provide structured environments, often charge more than informal arrangements like childminders.
- Childminders can offer lower prices as they typically have fewer overheads and may look after children in their own homes, which reduces costs.
- Babysitters tend to be more expensive than childminders since they’re offering a one-to-one service (or one to few if they look after your child’s siblings too), but they can offer a very personalised service.
- Nannies offer the highest level of individualised care. Nannies’ working hours are often full time or beyond, and in turn, command premium prices.
- A potentially cheaper hybrid of a nanny-come-babysitter could be an au pair. This is often a younger professional looking for live-in experience. You provide accommodation and food for them, alongside a small amount of ‘spending money’ in return for their full-time services.
2. Location
Where you live can have a huge impact on the price of childcare. Parents in urban areas, particularly in London, are subject to higher costs due to increased demand, higher staff wages, and higher property costs.
Research by Coram, presented by the BBC, shows that the cost of childcare in relation to average full-time salaries can reach as high as 50% in London!
3. Age of the Child
The age of your child also plays a role in determining costs. For younger children, particularly babies and toddlers, the cost is higher due to regulations requiring more staff per child. For example, nurseries must have one carer for every three children under the age of two. As your child gets older, the ratios increase, and the cost per child decreases.
For full-time (50 hours per week for 52 weeks a year) childcare costs in 2024, research shows the costs of nursery places as the following:
Children under two
- Per year it costs £15,709
- Per week, this is £302.10
- Per day nursery prices are around £60
Children aged two
- Per year it costs £14,983
- Per week, this is £288.13
- Per day, nursery costs around £58
4. Hours and Flexibility
Parents who work irregular hours or need care outside of traditional 9-to-5 schedules may find themselves paying a premium for flexibility. Many providers charge extra for early morning or late evening care, and holiday periods can also come with additional costs.
5. Extra Services
Some childcare providers offer additional services such as meals, transportation, or extracurricular activities. These services can add to the overall cost of care but may be worth the investment if they provide value for your child’s experience and your schedule.
Types of Childcare & Their Costs
As we mentioned, the type of childcare you choose has a significant impact on the cost. A one-to-one approach with a private nanny or babysitter will always be more expensive than larger group settings like nurseries. However, you might find a great middle-ground with a childminder.
We’ve explored the averages across 5 areas in the UK, and there are striking differences in the cost of childcare solutions:
Nursery Fees
This is the most common form of childcare in the UK, nurseries offer structured care for children under five years old. Depending on whether you opt for full-time (50 hours of childcare a week) or part-time (25 hours a week), this option can cost between £7,000 and £14,000 a year. For babies and toddlers, the cost can be even higher due to the higher staff-to-child ratio required by law.
Childminder Costs in the UK
A registered childminder tends to be slightly more affordable than a full time nursery placement. Childminders care for children in smaller groups, using their own homes to offer a more flexible, personal service. Reports show that the average cost of a childminder in England is around £6.39 per hour. For part-time care, this equates to roughly £5,300 per year, while full-time care could cost about £10,000 per year, depending on the region.
Babysitters Pricing
Babysitters are a common childcare option, especially when the required hours are non-standard. Typically babysitters offer weekend and evening childcare options but that comes with an increased price tag. Babysitters tend to offer one-to-one solutions though which makes it a more personalised service. The average Nationwide cost of a babysitter is £11.95 per hour, just above the National Living Wage.
Nannies
Hiring a nanny is typically the most expensive childcare option. A full-time live-out nanny costs between £30,000 and £50,000 per year in the UK. Families who hire nannies also need to account for additional costs such as tax, National Insurance contributions, and holiday pay, making this option the most costly by far.
Private Childcare Providers
You might be thinking ‘private’ - that sounds expensive!
But Government Approved Childcare facilities, like Learning Cubs, fall under the same financial support scope as any other educational institution, meaning we accept Universal Credit payments, Childcare Vouchers and Government Funded Hours.
Our childcare packages offer a fantastic blend of educational support and access to our activity spaces, games rooms and refreshments.
Affordable Childcare Schemes and Government Support
The UK government offers several schemes designed to make childcare more affordable for families. Understanding and utilising these schemes can significantly reduce your childcare expenses:
1. Tax-Free Childcare
Under the Tax-Free Childcare scheme, the UK government contributes £2 for every £8 you pay into your childcare account up to a maximum of £2,000 per year per child (or £4,000 if your child has disabilities).
This scheme provides a 20% discount on childcare costs for eligible families. It’s available for children under 12, or under 17 for children with disabilities.
2. Free Childcare Hours
Families in England are entitled to 15 hours of free childcare per week per child. Historically this was limited to 2, 3, and 4-Year-Olds, but as of September 2024, hundreds of thousands more parents can now access free childcare for children aged 9 months and older.
Eligible working parents and working families may qualify for up to 30 hours of free childcare, saving up to £5,000 annually.
3. Universal Credit for Childcare Costs
If you’re claiming Universal Credit, you can get up to 85% of your childcare costs covered, up to £646 per month for one child or £1,108 for two or more children. Both parents (or a single parent in a single-parent household) must be working to qualify, and the childcare provider must be registered.
At Learning Cubs, we support parents who receive Universal Credit - you can check your eligibility here.
4. Employer Childcare Support
Though the Childcare Voucher scheme is closed to new entrants, some parents are still benefiting from it. Many employers offer salary sacrifice schemes or direct childcare payments, reducing the tax liability and overall childcare costs.
If you joined one of these schemes on or before 4 October 2018 you might be able to keep getting vouchers or directly contracted childcare.
At Learning Cubs, we accept Childcare Vouchers or KiddiVouchers as payment. Find your local centre and get in touch to discuss any other queries you may have.
Tips for Finding Affordable Childcare
Beyond government schemes, there are other ways to find more affordable childcare:
1. Nanny Share Arrangements
Sharing a nanny with another family can reduce the cost by up to 50%. This arrangement allows both families to share the nanny’s time and salary, providing personalised care at a lower cost. Many parents in London and other urban areas take advantage of nanny shares to reduce their childcare expenses.
2. Explore Local Council Grants
Some local authorities provide additional subsidies or grants for childcare, particularly for low-income families. Checking with your local council to see what assistance is available is a good idea. These grants can cover everything from nursery fees to after-school clubs.
3. Parent Networks
Joining parent networks and forums can help you find affordable childcare options. Local parents often share information about trustworthy childminders, affordable nurseries, or group care cooperatives, where families rotate caregiving responsibilities, reducing overall childcare costs.
4. Flexible Working Arrangements
Many employers now offer flexible working arrangements, including remote work or compressed hours, which can reduce the need for full-time childcare. Even cutting back on childcare by one or two days a week can result in significant savings.
Balancing Cost with Quality: How to Choose Affordable and Reliable Care
When searching for affordable childcare, it’s essential not to compromise on quality. Here are some tips to ensure you're choosing both cost-effective and reliable care:
1. Check Ofsted Ratings
Ofsted rates childcare providers in England, offering clear indications of quality. Providers are rated on a scale from “Outstanding” to “Inadequate,” giving parents insight into staff qualifications, safety standards, and care practices. You can check the Ofsted ratings of nurseries and childminders in your area through the Ofsted website.
2. Read Reviews and Get Recommendations
Ask other parents in your local area or online forums for their recommendations. Reading reviews from other parents or speaking with those who have used local childcare services can provide valuable insights into the quality and cost of care.
We’re proud to have received hundreds of 5-star reviews across all of our centres:
3. Visit in Person
Always visit childcare facilities in person before making a decision.
Pay attention to how staff interact with children, the cleanliness and safety of the environment, and the overall atmosphere. A well-run nursery or childminder’s home should feel welcoming, safe, and engaging for your child.
You are more than welcome to pop into any of our Learning Cubs centres to see our classroom facilities, meet the tutors and discuss your child’s needs.
4. Compare Prices
It’s important to shop around and compare prices before committing to any childcare provider. At Learning Cubs, we offer comprehensive childcare packages that can be subsidised with Government Funding initiatives or Childcare Vouchers:
Silver Cub
- £688 per month
- Up to 2 sessions per week
- Available at all centres
- Ages 5-16
Gold Cub
- £1,376 per month
- Up to 4 sessions per week
- Available at all centres
- Ages 5-16
Making Informed Child Care Decisions
Childcare costs are a significant burden for many UK families, but with careful planning, government support, and solutions like Learning Cubs, affordable childcare is within reach.
By understanding the various factors that affect childcare prices and exploring all the available support schemes, you can find high-quality care that fits your budget.
At Learning Cubs, we’re committed to helping parents find the right balance between affordability and quality. Learn more about our affordable childcare programs and how we can support your family’s needs. Or if you’re ready to get started, contact your local centre.
