Childcare Costs & Free Hours Calculator (UK 2026)
Calculate total childcare costs, free hours entitlement, Tax-Free Childcare savings, and whether returning to work is financially worthwhile.
As an Amazon Associate and CJ Affiliate publisher we earn from qualifying purchases. Prices and availability may vary.
Childcare Costs Guide 2024
What do I need to know about Free Childcare Hours 2026/27 England?
Significant expansion of free childcare in England from April 2024: Under 2 years (from September 2024): 15 hours/week for working parents. 2-year-olds (from April 2024): 15 hours/week for working parents. 3 and 4 year olds: 15 hours/week (universal — all families). OR 30 hours/week for working parents. Eligibility for 30 hours (3-4 yr olds) and expanded 15 hours: both parents (or single parent) working and earning at least the equivalent of 16 hours at National Living Wage (~£9,518/year). Neither parent earning over £100,000 adjusted net income — this cap applies per parent, not combined.
What do I need to know about Tax-Free Childcare?
Tax-Free Childcare (TFC): government adds 20p for every 80p you pay. Maximum government contribution: £500 per quarter per child (£2,000/year). For disabled children: £1,000 per quarter (£4,000/year). Total maximum: £10,000/year into account (government tops up to £12,500). How it works: open a TFC account on childcarechoices.gov.uk. Pay into the account — government adds 20%. Pay your childcare provider from the account. Eligibility: same as 30 hours — both parents working, each earning at least 16 hours at National Living Wage, neither earning over £100,000. The two schemes can be used together.
What should I know about Universal Credit Childcare?
If you receive Universal Credit: childcare costs element covers up to 85% of eligible childcare costs. Maximum: £950.92/month for one child, £1,630.15/month for two or more children (2026/27 rates). Must be working to qualify. Claim via your Universal Credit account. Unlike TFC, Universal Credit childcare support is not capped by earnings — it scales with actual costs up to the maximum. Important: claim Universal Credit childcare immediately once you start using childcare — it can only be backda
What do I need to know about The Return-to-Work Calculation?
The key question: does returning to work pay after childcare costs? Consider: gross salary if returning. Less: income tax and NI on increased earnings. Less: net childcare cost (gross minus free hours, TFC, UC childcare, employer vouchers). Add: salary sacrifice options (some employers offer childcare salary sacrifice for nannies — saves NI). The marginal calculation: if each extra £1 earned nets only 20-30p after tax and childcare, many parents find full-time return does not pay — part-time or flexible working can leave a family financially little worse off than working full-time, once childcare and the tax/NI/benefit interactions are all accounted for.