Know exactly what you'll pay for nursery

Common questions

How many free childcare hours is my child entitled to?

From 9 months old, working parents can access 15 funded hours per week. From 2 years, working parents get 30 hours/week. From 3–4 years, all children receive the 15-hour universal entitlement; working parents receive 30 hours. Hours are based on 38 term-time weeks per year, or stretched across 51–52 weeks if your nursery offers it.

What is the nursery funding gap?

The government pays nurseries a set hourly rate (the LA rate) for funded hours. If that rate is lower than the nursery's private rate, nurseries can charge parents a top-up — this is the funding gap. It is legal and common. Our calculator includes it in your monthly cost estimate.

Can I stretch my funded hours across more weeks?

Yes. Instead of taking funded hours across 38 term-time weeks, many nurseries offer to stretch them across 51 or 52 weeks. This gives fewer hours per week but avoids a £0 cost in term time and full cost in holidays. The total funded hours per year is the same either way.

What is Tax-Free Childcare and how much can I save?

Tax-Free Childcare is a government scheme where for every £8 you deposit into a government-backed account, the government adds £2 — up to £500 per quarter (£2,000 per year, or £4,000 for disabled children). It is available to working parents earning above the national minimum wage equivalent and below £100,000 per year.

Can I use Universal Credit childcare support and Tax-Free Childcare at the same time?

No. Universal Credit childcare support and Tax-Free Childcare are mutually exclusive — you can only claim one. Universal Credit covers 85% of eligible childcare costs and is usually better value for lower incomes. Tax-Free Childcare is typically better for higher earners. Our calculator shows which applies to your situation.

When do funded childcare hours start?

Funded hours begin at the start of the term following the relevant age threshold. There are three term start dates in England: September, January, and April. For example, a child who turns 3 in October starts receiving funded hours the following January term.