Childcare Cost Calculator
Calculate UK childcare costs with free hours, Tax-Free Childcare, and Universal Credit support.
38 = term-time only, 52 = year-round
Annual Cost (before support)
£13,000
Free Hours Value
£0
Total Annual Cost
£13,000
Monthly Cost
£1,083
Total Savings
£0
Your Support Package
No free hours yet
Available Support Schemes
15-30 Hours Free
All 3-4 year olds get 15 hrs. Working parents get 30 hrs. Worth up to £0/year.
Tax-Free Childcare
Govt adds 20% (max £2k/year). Both parents must earn <£100k. Child under 12.
Universal Credit
Claim back up to 85% of costs. Max £646/mo (1 child) or £1,108/mo (2+ children).
Eligibility criteria simplified. Check GOV.UK for complete rules. You cannot claim Tax-Free Childcare and Universal Credit simultaneously.
Why childcare support is so complicated
The UK runs several childcare support schemes side by side, free hours based on your child's age, Tax-Free Childcare (a UK-wide top-up scheme), and Universal Credit childcare support, each with different eligibility rules, income thresholds, and claiming processes. Most families are only eligible for one combination of these at a time, and picking the wrong one can cost hundreds of pounds a year.
This calculator estimates your likely support based on your child's age, income and working status, but always confirm your exact entitlement on GOV.UK before making decisions, since eligibility rules can change and depend on factors this simplified tool doesn't capture (such as both parents' individual incomes rather than household income).
Steps to maximise your childcare support
Check your free hours entitlement first
All 3-4 year olds get at least 15 free hours a week during term time, apply through your local council even before considering paid schemes.
Compare Tax-Free Childcare vs Universal Credit
You cannot claim both. Tax-Free Childcare (20% top-up, max £2,000/year per child) tends to suit higher earners; Universal Credit's 85% reimbursement often works better for lower household incomes.
Set up your childcare account early
Tax-Free Childcare accounts need to be set up and topped up in advance of paying your provider, leaving it too late can mean missing a month's top-up.
Reconfirm eligibility every 3 months
Tax-Free Childcare and the extended hours schemes require reconfirmation every 3 months, missing this can pause your funding without warning.
Related tools
Worked example: nursery three days a week
A nursery charges £60 a day. Three days a week for 48 weeks is 144 days, so the annual cost is £8,640, or £720 a month.
With Tax-Free Childcare the government adds 20p for every 80p you pay in, up to £2,000 per child a year. Here you would pay in £6,912 and receive a £1,728 top-up, which covers the full £8,640. Funded hours, if you qualify, reduce the bill further, so check eligibility on GOV.UK.
Frequently Asked Questions
Can I use Tax-Free Childcare and funded hours together?
Yes, in most cases. Funded hours reduce what the provider charges and Tax-Free Childcare can help pay the remaining bill.
Does the cost include meals and extras?
Not always. Some nurseries charge separately for food, nappies, trips and registration, so ask for a full fee list.
Do childcare costs vary by area?
A lot. London and the South East are typically the most expensive, so use the actual fee from your provider for the best estimate.
Frequently Asked Questions
What is Tax-Free Childcare?
Government scheme where for every £8 you pay, government adds £2 (20% top-up). Max £2,000/year per child (£4,000 for disabled children). Income limit: £100k each parent.
How many free hours do I get?
All 3-4 year olds get 15 hours/week (38 weeks). Working parents can get 30 hours/week. 2 year olds get 15 hours if on certain benefits.
What is Universal Credit childcare support?
Working parents on UC can claim back up to 85% of childcare costs. Max £646/month for one child, £1,108/month for two+ children.
When can I use free hours?
15 hours for all 3-4 year olds. 30 hours for working parents (both earning min £139/week, <£100k/year). Free hours start the term after child turns 3.
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Not Financial Advice: This calculator is for informational and educational purposes only. Results are estimates and do not constitute financial advice, recommendations, or regulated advice. We are not authorised or regulated by the Financial Conduct Authority (FCA). Always consult a qualified financial adviser for personalised advice. Tax treatment depends on your individual circumstances and may change. Tax laws and rates may change. Past performance does not guarantee future results.
