How Much Do You Pay in the UK For Childcare Costs?

Are you searching for a nursery for your child? It is important to be prepared for certain factors beforehand, one of which includes childcare costs. This article breaks down those costs, looks at available support, and offers helpful tips to ease the financial burden.
H2: How much is childcare per day?
The typical daily cost for nursery childcare in the UK is about £60. However, childcare expenses can fluctuate based on location and the specific type of childcare chosen. These factors may include, location, age of the child and type of childcare such as full-time or part-time care.

Regional variations in childcare costs

Where you live in the UK has a big impact on childcare fees. London and the South East of England generally have the highest costs, sometimes exceeding £1,500 per month for full-time nursery care. In contrast, areas in the North of England, Scotland, Wales, and Northern Ireland usually see lower prices. For example, a nursery place in Manchester might be significantly cheaper than a similar one in Oxford. Costs can fluctuate even within the same region.

Types of childcare and their associated costs

Different types of childcare come with different price tags. Nurseries are often the most expensive option, offering structured care for babies and young children. Childminders, who care for children in their own homes, can be slightly more affordable. Nannies, providing one-on-one care in your home, are typically the most expensive. After-school clubs and holiday clubs offer care for older children and can be a cheaper alternative to full-time care. Costs vary as a result of staffing levels, resources, and qualifications.

Average costs for full-time and part-time care

Let’s take a look at the estimated breakdown of childcare costs throughout the different types of care.

Full-time childcare costs

Part-time childcare costs

Are childminders cheaper than nurseries?

Childminders tend to be slightly cheaper than nurseries, as their services are based around smaller environments such as the home. However, they are typically less flexible than nurseries as they can’t offer a wide range of activities and will have limited to no cover when in cases when the childminder is absent or sick.

Factors influencing childcare costs

Many things affect what you’ll pay for childcare. The location is a big one, with city centres usually costing more than rural areas. An Ofsted rating also matters; nurseries with “Outstanding” ratings can often charge higher rates. Staff qualifications, such as having qualified teachers or early years professionals, can also increase prices. Also, the number of hours of care needed each week influences the total cost.

Government schemes to help with fees

The good news is that the government offers several schemes to help with childcare costs. It is vital to understand these options to reduce your expenses.

Tax-free childcare scheme

The Tax-Free Childcare scheme lets you open an online account to pay for childcare. For every £8 you pay in, the government adds £2, up to a maximum of £2,000 per child per year (or £4,000 for disabled children). To be eligible, both parents (if applicable) must be working and earning at least the National Minimum Wage for 16 hours a week, but less than £100,000 per year. This scheme can provide much-needed relief for working families.

15 and 30 hours of free childcare

In England, all families with 3 and 4-year-old children can claim 15 hours of free childcare per week. Working families who meet certain income requirements can get up to 30 hours. Eligibility usually requires both parents (if applicable) to be working and earning above a certain threshold. To apply, you need to go through the government’s website and provide proof of income and other required documents. These hours can only be used during term time, so planning is vital.

Universal credit childcare costs

If you’re claiming Universal Credit, you might be able to claim back some of your childcare costs. Universal Credit can cover up to 85% of your childcare expenses, up to a certain limit. As of now, this limit is around £646 per month for one child and £1,108 for two or more children. Eligibility depends on your income and circumstances. You’ll need to provide evidence of your childcare costs to your work coach.

Established in 1989, First Step Day Nursery is a nursery that offers every child a safe and interactive environment to work in. We are committed to making our services accessible to all parents and children, which is why we offer help with childcare costs. We offer all children a minimum of 15 hours of funded childcare and up to 30 hours a week. We also offer tax-free childcare, meaning for every £0.80 you pay, the government will pay an additional £0.20.

Contact our friendly team today to make an inquiry about childcare at First Steps!