Childcare cost calculator
Enter your child's age, the type of childcare you need and your region to get an estimated monthly cost. Then see how much of the government's free hours entitlement applies to your situation and how much it reduces your bill. Updated for the 2024/25 expanded free hours rollout.
Childcare costs are one of the biggest financial shocks new parents face. The best thing you can do is find out your entitlement early, register with a provider before you need them (waiting lists can be months long), and check whether your employer offers a Childcare Voucher scheme or Salary Sacrifice arrangement - these can reduce the cost further by paying for childcare from pre-tax income.
Tax-Free Childcare
For every £8 you pay into a Tax-Free Childcare account, the government adds £2 - up to £2,000 per child per year (£4,000 for disabled children). You must be working and earning at least £2,379 per quarter. You cannot use Tax-Free Childcare at the same time as Childcare Vouchers.
The 15 vs 30 hours difference
All 3 and 4 year olds get 15 hours of free childcare per week (38 weeks per year). Working parents who each earn between £2,379 and £100,000 per quarter can get 30 hours. From September 2024 the 15-hour entitlement extended to eligible working parents of children aged 9 months and over.
Top-up charges
Providers can charge for meals, consumables and additional hours on top of the free hours funding. The free hours are funded by the government at a rate that is often lower than what providers charge commercially, so many charge a top-up to cover the difference. Always ask providers what additional charges apply.
Universal Credit childcare
If you are on Universal Credit you may be able to claim back up to 85% of childcare costs (up to £1,014.63 per month for one child). This is separate from the free hours entitlement and can be claimed alongside it. Check your eligibility on the government website.
Please note: Childcare costs are estimates based on typical regional rates for 2024/25 and vary significantly between providers, settings and local authorities. Free hours entitlements are correct as of September 2024 but are subject to change. Always check your specific entitlement with your local authority and confirm costs directly with your chosen provider. This is not financial or legal advice. Free hours figures are based on 38 funded weeks per year.
What does the childcare cost calculator do?
The childcare cost calculator estimates your monthly childcare expenditure and the net cost after applying any government support – Tax-Free Childcare, the funded 15 or 30 hours entitlement, and Universal Credit childcare element, where applicable.
How to use this calculator
Child’s age: Eligibility for funded hours depends on age. The 15 hours universal entitlement applies from age 3; working parents can access 30 hours from age 3 (and from age 9 months in some areas from 2024). Under-3s receive no funded hours.
Childcare type: Nursery, childminder, after-school club, or holiday club. Rates vary significantly between providers and regions.
Hours per week: The number of hours of paid childcare required.
Tax-Free Childcare: If eligible, Tax-Free Childcare provides a 20% top-up on childcare costs up to £2,000 per child per year (£4,000 for disabled children). Eligibility requires both parents to be working and earning between the equivalent of 16 hours per week at minimum wage and £100,000 per year.
Reading the result: The calculator shows gross monthly childcare cost, the funded hours credit (if applicable), the Tax-Free Childcare saving, and the net monthly cost after all support.
Frequently asked questions
What is Tax-Free Childcare and how does it work? Tax-Free Childcare is a government scheme where for every £8 you put into your childcare account, the government adds £2 – effectively a 20% top-up. The maximum government contribution is £2,000 per child per year. You apply through the government’s Childcare Choices website.
Can I use salary sacrifice for childcare? The childcare voucher scheme closed to new entrants in October 2018 and is no longer available. Tax-Free Childcare is the current equivalent for most working parents.
What are the funded hours, and how do I access them? The funded childcare hours entitlement allows eligible children to access free childcare at approved providers. Claim through your local authority or provider – the funded hours reduce the amount you pay for childcare directly.
The information on this site is for educational and informational purposes only. Nothing on Be More Peter constitutes financial advice, and nothing should be treated as such. The calculators, articles and tools on this site are designed to help you understand financial concepts and run indicative numbers - they are not a substitute for professional advice tailored to your specific circumstances. Before making any financial decision - including decisions about mortgages, pensions, investments, savings or insurance — you should seek independent financial advice from a qualified adviser who is authorised and regulated by the Financial Conduct Authority (FCA). Calculator results are estimates based on the information you enter and the assumptions built into the tool. They are illustrative only and should not be relied upon as accurate projections. Rates, thresholds and rules change regularly - always verify figures with an appropriate professional or official source before acting on them. Be More Peter is not authorised or regulated by the FCA. The content on this site does not constitute a financial promotion.
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- Monthly budget calculator — include childcare in your budget