Nursery: What's available
Costs, flexibility and tax-efficient options for nursery-based childcare.
Last updated
Nursery Childcare
Free childcare hours vary across England, Wales, Scotland and Northern Ireland. The information below is for England only.
What's available
15 hours free childcare for 3 and 4-year-olds
All 3 to 4-year-olds in England can get 570 free hours per year. It’s usually taken as 15 hours a week for 38 weeks of the year. Some providers allow you to take fewer hours over more weeks.
30 hours free childcare for working parents of 9 month to 4 year olds
If you are a working parent, and meet other eligibility criteria, you could get 30 free hours a week for 38 weeks (1,140 hours in total). If either partner in the household has an adjusted net income over £100,000, you are no longer eligible.
Tax-Free Childcare
You can get up to £500 every 3 months (up to £2,000 a year) for each of your children to help with the costs of childcare. If you get Tax-Free Childcare, you’ll set up an online childcare account for your child. For every £8 you pay into this account, the government will pay in £2 to use to pay your provider. If either partner in the household has an adjusted net income over £100,000, you are no longer eligible.
Tips
Clustering free hours
Some nurseries charge a varying hourly rate depending on the number of hours paid childcare per week. It may be worth avoiding spreading the free hours so that paid hours are clustered, pushing the hourly rate into a cheaper bracket. E.G. Assume 45 hours required with the following fees:
| Paid hours per week | Hourly Rate |
|---|---|
| 35+ | £8.44 |
| 26 – 34 | £9.24 |
| 16-25 | £10.08 |
| 11-15 | £10.96 |
| 1-10 | £11.80 |
- 30 hours free for 38 weeks means paying for 38 weeks of 15 hours and 14 weeks of 45 hours = £11,564.40
- 22 hours free for 52 weeks means paying for 52 weeks of 23 hours = £12,055.68
- In this instance, a saving of £491.28 per year by clustering paid hours.
Of course, this depends on fee structure.
Nursery Cost Calculator
Cash flow map
Nursery funding scenario
Adjust salary, bonus, pension assumptions, and childcare usage to see how gross pay flows through pension, tax, and nursery costs.
Meant as a guide only
- Nursery spend
- £23,040
- Spending money
- £48,983