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Childcare cost calculator
What nursery really costs in England once the funded hours and the Tax-Free Childcare top-up are taken off, and what the £100,000 income cliff would take away.
Tax year 2026/27, England only: Scotland, Wales and Northern Ireland run different schemes. To qualify as a working family, each parent must expect to earn at least £2,643.68 over 3 months (less if under 21) and keep adjusted net income at or below £100,000.
Your estimated true cost each month
£423.53
£9,318 a year less than the sticker price
- Sticker price£14,400/yr
- Funded hours (1140 hrs/yr)−£8,047
- Tax-Free Childcare top-up−£1,271
- You pay£5,082/yr
Estimates only. Providers can charge for meals, nappies and consumables on funded hours, and funding follows school terms. Fitting the bill into your month? Budget planner.
Common questions
- How many free childcare hours do working parents get in England?
- Eligible working families get 30 funded hours a week from age 9 months until school, for 38 weeks a year (1,140 hours). Many nurseries let you stretch those hours over the full year instead, for example around 22 hours a week over 51 weeks. Separately, every 3 and 4 year old gets 15 universal hours (570 a year) regardless of income or work.
- Who counts as a working family for the 30 hours and Tax-Free Childcare?
- Each parent (both, in a couple) must expect to earn at least £2,643.68 over the next 3 months, which is 16 hours a week at the £12.71 minimum wage, roughly £10,575 a year. Each parent must also keep adjusted net income at or below £100,000. The earnings floor is lower if you are under 21 or an apprentice.
- How does the Tax-Free Childcare top-up work?
- You pay into a government childcare account and for every £8 you put in, the government adds £2. That covers 20% of your childcare bill, capped at £500 every 3 months (£2,000 a year) per child, or £1,000 every 3 months (£4,000 a year) if your child is disabled. On a £750 monthly bill you pay £600 and the top-up covers £150.
- What is the £100,000 childcare cliff edge?
- If either parent's adjusted net income goes a single pound over £100,000, the family loses both the working-family funded hours and Tax-Free Childcare entirely. For a family with a toddler in full-time nursery that can be worth well over £10,000 a year, so a £1,000 pay rise from £100,000 can genuinely leave you worse off. Pension contributions, especially salary sacrifice, reduce adjusted net income and are the standard fix.
- Why is my funded nursery place not actually free?
- The government funds the hours at a set rate, but providers can charge for meals, snacks, nappies and consumables, and many add a top-up fee or only offer funded places on certain days. A 'free' place often still costs £100 to £300 a month. This calculator works from your sticker bill, so always compare against your provider's own funded-hours quote.
- Do the same rules apply in Scotland, Wales and Northern Ireland?
- No. This calculator covers England only. Scotland offers 1,140 funded hours a year for 3 and 4 year olds and eligible 2 year olds, Wales has its own Childcare Offer of up to 30 hours, and Northern Ireland uses a separate subsidy scheme. Tax-Free Childcare itself is UK-wide, so the 20% top-up works everywhere.
Near the £100,000 cliff? The salary sacrifice calculator shows how pension contributions bring adjusted net income back under the cap, and the budget planner helps fit the nursery bill into the rest of your month. This tool is guidance to help you understand the schemes, not regulated financial advice.