Childcare Costs Drop for Some Families in England
The cost of a full-time nursery place for children under two in England has decreased by nearly 40% for certain families, according to the latest annual survey from the Coram Family and Childcare charity.
Since September 2025, eligible working parents of children aged between nine months and four years in England have been entitled to 30 hours a week of government-funded childcare during term time.
However, childcare costs have increased for families in England who do not qualify for the free hours, as well as for families in Scotland and Wales.
How Expensive Is Childcare in the UK?
The average weekly cost of full-time nursery care (50 hours per week) for a child under two in England was just under £149 in 2026. This represents a 39% decrease compared to 2025, based on data from Coram, which monitors childcare costs across England, Scotland, and Wales.
Coram's 2026 survey is the first since the full expansion of government-funded hours in England.
The survey found that childcare costs have risen for families in England who are not eligible for funded hours, either because they are not working, earn below the threshold, or do not meet other eligibility criteria.
The charity warns of a risk that some disadvantaged children may have reduced access to early years education compared to those in working families.
Families in Scotland and Wales have not experienced reductions in childcare costs. Coram's data indicates that Wales is now the most expensive location for under-twos, with full-time nursery places costing £325 per week, an 11% increase from 2025. In Scotland, the cost is £259 per week, up 5%.
The cost of full-time nursery places for three and four-year-olds has also increased across England, Scotland, and Wales.
Separate figures from Northern Ireland show that in 2024—the latest year with available data—the average monthly childcare cost was:
How Does Funded Childcare in England Work?
In England, all three and four-year-olds are eligible for 15 hours of government-funded childcare, regardless of their parents' employment status.
Additional support depends on the child's age and whether parents are working or receiving certain benefits.
Since September 2025, working parents have been entitled to 30 hours of funded childcare per week during term time.
To qualify, most parents must earn between £9,518 and £100,000 annually.
Parents receiving certain benefits may also qualify for funded hours.
Parents who do not work might still be eligible for 30 hours of free childcare if their partner works or if they receive benefits such as maternity or paternity leave.
The most recent official figures indicate that the number of children receiving free childcare hours in England increased by 33% in the 12 months to January 2025, reaching a record high of 1.7 million.
In September 2025, the government announced it had surpassed its target to provide funded childcare to an additional half a million children.
How Do You Apply for 15 or 30 Hours of Funded Childcare?
The government website provides details on application deadlines for each age group.
For the working parent entitlement, applications can be made once the child is 23 weeks old, but funding begins at the start of the term after the child turns nine months old.
The school terms start on 1 September, 1 January, and 1 April.
If eligible parents do not apply before the start of the relevant term, funding will commence at the beginning of the following term.
Once approved, parents receive an 11-digit code to provide to their childcare provider.
The funded hours are intended for use over 38 weeks per year during school term time, though some providers may stretch them over 52 weeks if fewer hours are used weekly.
What Is Not Covered by Funded Childcare?
The government has increased the hourly rate paid to childcare providers for funded hours, but often this does not cover the full cost. Providers may charge additional fees for items such as meals, nappies, sun cream, or trips.
Research by the Pregnant Then Screwed charity found that nearly a quarter (23%) of parents surveyed reported being unable to afford accessing funded childcare due to top-up fees.
In February 2025, the Department for Education (DfE) advised nurseries that parents should be able to opt out of paying for extras,
"to ensure no family is priced out".
However, some providers state these payments subsidize the cost of funded hours for three and four-year-olds.
More than 5,000 nurseries signed an open letter to the DfE requesting a delay in implementing the new opt-out rules.
Are There Enough Childcare Places?
The DfE indicated that an additional 35,000 staff and 70,000 childcare places would be required to meet demand by September 2025, when funded hours were fully implemented.
Between 2023 and 2024, the number of childcare places increased by 44,400, according to DfE data.
However, Ofsted, the education regulator, has warned that childcare places are not evenly distributed across the country.
The number of childminders—those providing early years care in private homes—has declined.
Areas described as "childcare deserts" tend to have lower household incomes and higher deprivation levels than other regions.
Early years charities have expressed concern that the latest DfE figures show a decline in the proportion of two-year-olds from disadvantaged backgrounds receiving funded hours, from 75% in 2024 to 65% in 2025.
The DfE cautions that some families may have been incorrectly recorded in these statistics, advising that the figures be interpreted carefully.
Coram's most recent survey on childcare sufficiency within local authorities suggests a shortage of early years childcare places for children with special educational needs and disabilities (SEND).
The charity defines "sufficient childcare" as having enough places for at least 75% of children in a local authority area.
Three-quarters of local authorities in England reported having sufficient childcare for at least 75% of children under two eligible for the 30-hour entitlement.
However, fewer than half (44%) reported sufficient childcare for early years children with SEND, and this falls to 23% for school-aged children with SEND.
The government has pledged to create 100,000 additional childcare places and establish over 3,000 new nurseries in schools.
It reported that more than 5,000 new childcare places opened in nurseries on school sites in September 2025.
Private nursery leaders argue that government funding increases do not cover rising energy and staffing costs.
The Early Years Alliance charity reported that about 185 of 1,100 private nurseries surveyed indicated they were "likely" to withdraw from the scheme within the next 12 months due to unsustainable financial pressures.
What Childcare Help Is Available in Scotland, Wales, and Northern Ireland?
In Scotland, Wales, and Northern Ireland, all three and four-year-olds and some two-year-olds are entitled to 30 hours per week of funded childcare during term time (or 22 hours per week if spread across the year), regardless of parental working status.
Eligible parents can access 30 hours of childcare for three and four-year-olds, and governments are expanding support for two-year-olds.
In Northern Ireland, the Childcare Subsidy Scheme (NICSS) offers a 15% discount on childcare to qualifying working parents with pre-school and primary-aged children.
Children with disabilities attending post-primary or special schools up to age 16 are also eligible for the subsidy.
How Does Tax-Free Childcare Work?
Parents may also qualify for additional support through the UK-wide tax-free childcare scheme.
For every £8 paid into an online childcare account, the government contributes £2, up to £2,000 per child annually, or £4,000 for disabled children.
Funds can be used to pay for approved childcare providers who are registered with the scheme.
Parents eligible for free childcare hours can also save through the tax-free childcare scheme.
