Full-time nursery fees in England average over £14,000 per year — but most families don’t pay anything close to that, because there’s a lot of government support available. The trick is knowing which schemes you qualify for and how to combine them.
Below is every source of help with nursery fees in 2026: free hours, tax relief, benefits, employer schemes, and grants.
1. Free Childcare Hours
The government provides free early education and childcare hours for children from age 9 months, expanding in stages depending on your circumstances.
Universal 15 Hours (All 3-4 Year Olds)
Every child in England receives 15 hours of free childcare per week (570 hours per year) from the term after their third birthday until they start school. This applies regardless of whether parents work.
What you get:
- 15 hours per week during term time (38 weeks), or
- Stretched over 51 weeks at approximately 11 hours per week
- Worth approximately £3,000-£5,000 per year depending on local hourly rates
Who qualifies: All 3-4 year olds in England
Learn more: Free Childcare Hours: Complete Guide
Extended 30 Hours (Working Parents)
Working parents of 3-4 year olds can access an additional 15 hours, bringing the total to 30 hours per week of funded childcare.
What you get:
- 30 hours per week during term time (38 weeks), or
- Stretched over 51 weeks at approximately 23 hours per week
- Worth approximately £6,000-£10,000 per year
Who qualifies:
- Both parents working (or sole parent if single)
- Each parent earning equivalent to 16 hours at National Living Wage weekly
- Each parent earning under £100,000 annually
Learn more: 30 Hours Free Childcare Explained
Working Parents: 9 Months to 2 Years Old
Since September 2025, working parents in England can access up to 30 hours of free childcare for children from 9 months old.
How the expansion rolled out:
- April 2024: 15 hours for working parents of 2-year-olds
- September 2024: 15 hours for working parents of children from 9 months
- September 2025: 30 hours for working parents of children from 9 months
Who qualifies: Same working requirements as 30 hours for 3-4 year olds
2-Year-Old Funding (Low Income Families)
Some 2-year-olds qualify for 15 hours based on benefits rather than parental work.
Who qualifies:
- Families receiving Income Support, income-based JSA, income-related ESA, or Universal Credit with household income under £15,400
- Children with SEN or disability
- Children who have left care or have a special guardianship order
- Children receiving Disability Living Allowance
2. Tax-Free Childcare
Tax-Free Childcare is a government scheme that gives you £2 for every £8 you pay into a special childcare account — effectively a 20% discount on childcare costs.
What you get:
- Government adds 20p for every 80p you pay in
- Maximum government contribution: £2,000 per child per year
- £4,000 per year for disabled children
- Can be used for registered nurseries, childminders, holiday clubs, and wraparound care
Who qualifies:
- Both parents working (or sole parent if single)
- Each parent earning at least £2,540 over 3 months (16 hours at National Minimum Wage weekly, if 21+)
- Neither parent earning over £100,000
- Child under 11 (or under 17 if disabled)
- Not receiving tax credits or Universal Credit
Example: If you pay £800/month for nursery, you pay £640 and the government adds £160. Annual saving: £1,920.
Learn more: Tax-Free Childcare: Is It Worth It?
3. Universal Credit Childcare Element
Universal Credit can pay up to 85% of childcare costs, claimed back monthly after you’ve paid your provider.
What you get:
- Up to 85% of eligible childcare costs
- Maximum: £1,031.88/month for one child
- Maximum: £1,768.94/month for two or more children
- Covers registered childcare only (nurseries, childminders, out-of-school clubs)
Who qualifies:
- Receiving Universal Credit
- Both parents working (or one working if the other cannot work due to disability or caring responsibilities)
- Using registered or approved childcare
- Child under 16 (or under 17 for September starters)
Important: You pay upfront and claim costs back monthly. You cannot combine this with Tax-Free Childcare — compare which gives you more.
Example: Nursery costs £1,200/month. Universal Credit pays back 85% = £1,020. That’s within the £1,031.88 cap, so you’d pay just £180/month.
Learn more: Universal Credit Childcare Costs Explained
4. Tax Credits Childcare Element
If you’re still claiming Child Tax Credit or Working Tax Credit (legacy benefits being replaced by Universal Credit), you may qualify for help with childcare costs.
What you get:
- Up to 70% of eligible childcare costs
- Maximum: £175/week for one child (£9,100/year)
- Maximum: £300/week for two or more children (£15,600/year)
Who qualifies:
- Receiving Child Tax Credit or Working Tax Credit
- Working at least 16 hours per week
- Using registered childcare
Note: Tax credits are closed to new applicants. If you’re already claiming and move to Universal Credit, you’ll switch to the Universal Credit childcare element (which has higher coverage at 85%).
5. Childcare Vouchers
Employer-supported childcare vouchers allowed you to pay for childcare from pre-tax salary. The scheme closed to new applicants in October 2018, but if you were enrolled before then, you can continue using it.
What you get:
- Save on Income Tax and National Insurance
- Savings depend on your tax band:
- Basic rate (20%): Save up to £933/year
- Higher rate (40%): Save up to £623/year
- Additional rate (45%): Save up to £578/year
Who qualifies:
- Enrolled before 4 October 2018
- Still employed by the same employer (or scheme allows portability)
Important: You cannot combine childcare vouchers with Tax-Free Childcare or Universal Credit childcare costs. Compare which gives you more before switching.
Learn more: Childcare Vouchers Explained
6. Employer Childcare Support
Beyond vouchers, some employers offer other forms of childcare support.
Workplace Nurseries
Some employers provide on-site nurseries or partner with local providers. Places are often tax-free (you pay from pre-tax salary) and may be subsidised.
Benefits:
- Potential tax savings
- Convenient location
- Subsidised fees (employer-dependent)
Who qualifies: Availability varies by employer. Ask your HR department.
Salary Sacrifice
Some employers let you sacrifice salary in exchange for childcare contributions, reducing your tax and NI.
Benefits:
- Similar to childcare vouchers
- May be available even if vouchers aren’t offered
Important: Check impact on maternity pay, pension contributions, and other salary-linked benefits.
7. Disability Access Fund and SEN Support
Additional funding is available for children with special educational needs or disabilities.
Disability Access Fund
Provides £881 per year (2025/26) to help disabled children access their free early education hours.
Who qualifies:
- Child receives Disability Living Allowance
- Claiming free early education for 3-4 year olds
How it works: Paid directly to your nursery or childcare provider to support inclusion (e.g., additional staff, equipment, training).
SEN Inclusion Fund
Local authorities provide additional funding to early years providers for children with SEN who need extra support beyond the Disability Access Fund.
Who qualifies: Children with identified SEN needing one-to-one support or specialist resources.
How it works: Your provider applies to the local authority. Funding is determined based on assessed need.
Early Years Pupil Premium
Provides £389.60 per year (2025/26) for disadvantaged 3-4 year olds accessing free early education.
Who qualifies: Children whose families receive certain benefits, or who have been looked after or adopted.
8. Local Authority Hardship Funds
Many councils operate discretionary childcare funds for families facing financial hardship.
What’s available:
- One-off grants for childcare deposits
- Temporary support during financial crisis
- Help with childcare costs while job-seeking
- Support for families fleeing domestic abuse
Who qualifies: Varies by local authority. Usually means-tested with priority for families in crisis or specific circumstances.
How to apply: Contact your local authority’s Family Information Service or early years team.
9. Charitable Grants and Support
Several national and local charities provide childcare grants for families in need.
Family Fund
Supports families with disabled or seriously ill children with grants for childcare, equipment, and activities.
Who qualifies:
- Child under 18
- Child receiving Disability Living Allowance or Personal Independence Payment
- Low-income household
Apply: familyfund.org.uk
Turn2Us
Provides grants for families in crisis, which can include childcare costs.
Who qualifies: Low-income families facing hardship
Apply: turn2us.org.uk
Educational Grants Advisory Service (EGAS)
Helps families access charitable funding for education-related costs including childcare for parents in education.
Who qualifies: Parents in further or higher education
Apply: family-action.org.uk
Local Charitable Trusts
Many areas have local trusts that support families with childcare costs. Use the Turn2Us grants search to find schemes in your area.
Comparison of All Childcare Support Schemes
| Scheme | Who Qualifies | Maximum Value | Can Combine With |
|---|---|---|---|
| 15 hours (universal, 3-4) | All 3-4 year olds | £3,000-£5,000/year | Tax-Free Childcare, Universal Credit, tax credits |
| 30 hours (3-4) | Working parents | £6,000-£10,000/year | Tax-Free Childcare, Universal Credit, tax credits |
| 15 hours (9m-2yr) | Working parents (from Sept 2025) | £3,000-£5,000/year | Tax-Free Childcare, Universal Credit, tax credits |
| Tax-Free Childcare | Working parents, earning £2,540-£100k quarterly | £2,000/year per child | Free hours only (not UC/tax credits/vouchers) |
| Universal Credit | UC claimants, working | 85% up to £1,031.88/month (1 child) | Free hours only (not TFC/tax credits/vouchers) |
| Tax credits | Legacy claimants (closed to new) | 70% up to £175/week | Free hours only (not TFC/UC/vouchers) |
| Childcare vouchers | Enrolled before Oct 2018 | Up to £933/year tax saving | Free hours only (not TFC/UC/tax credits) |
| Disability Access Fund | Child receives DLA, accessing free hours | £881/year | All schemes |
| Early Years Pupil Premium | Eligible 3-4 year olds | £389.60/year | All schemes |
Which Scheme Is Right for Me?
The best combination depends on your circumstances. Here’s a decision framework:
If Your Child Is 3-4 Years Old:
- Claim your 15 universal hours (everyone qualifies)
- Check if you qualify for 30 hours (if both parents working)
- Compare Tax-Free Childcare vs Universal Credit childcare element (cannot combine):
- Use our funding eligibility checker to calculate which gives you more
- Generally: UC childcare element is better if you have low earnings or high childcare costs; Tax-Free Childcare is better for moderate-to-high earners
- If still on tax credits or childcare vouchers, compare with Tax-Free Childcare before switching
- If your child has SEN/disability, claim Disability Access Fund and check Early Years Pupil Premium eligibility
If Your Child Is Under 3:
- Check if you qualify for 2-year-old funding (low income families)
- Check if you qualify for up to 30 hours (working parents, from 9 months — available since September 2025)
- Compare Tax-Free Childcare vs Universal Credit childcare element (same logic as above)
- Consider employer schemes if available
- If facing hardship, explore local authority funds and charitable grants
If You’re Not Working:
- Claim 15 hours from age 3 (universal entitlement)
- Check 2-year-old funding eligibility (if on benefits)
- You won’t qualify for Tax-Free Childcare or Universal Credit childcare costs
- Explore local authority hardship funds if needed
- If studying or training, check Educational Grants Advisory Service
- If you have a disabled child, explore Family Fund
How to Apply
Each scheme has a different application process:
- Free childcare hours: Apply via Childcare Choices (30 hours and working parent hours) or directly with your nursery (universal 15 hours)
- Tax-Free Childcare: Sign up via Childcare Choices
- Universal Credit childcare costs: Report costs via your UC online account
- Tax credits childcare element: Contact HMRC
- Disability Access Fund: Your nursery claims on your behalf
- Local authority funds: Contact your council’s Family Information Service
- Charitable grants: Apply directly to each charity
Tips for Maximising Your Support
-
Use the government’s Childcare Choices website to check all schemes at once: childcarechoices.gov.uk
-
Calculate your options before committing — use our childcare cost calculator to compare scenarios
-
Reapply every 3 months for Tax-Free Childcare and working parent hours (your eligibility code expires)
-
Report changes promptly to Universal Credit and tax credits — delays can cause overpayments
-
Keep receipts and invoices for all childcare payments (especially for UC claims)
-
Stretch your hours over 51 weeks instead of 38 if you need year-round care (check if your nursery offers this)
-
Combine schemes legally — free hours + Tax-Free Childcare or free hours + Universal Credit
-
Ask your nursery about payment plans, bursaries, or sibling discounts if you’re struggling with upfront costs
-
Shop around — nursery fees vary significantly. Use our nursery search to compare local providers
-
Check annually — entitlements, income thresholds, and rates change each tax year
Common Mistakes to Avoid
- Assuming you don’t qualify — most working families qualify for something, even if earnings vary
- Missing reconfirmation deadlines — your 30 hours or Tax-Free Childcare code will expire
- Not comparing Universal Credit vs Tax-Free Childcare — one may be significantly better for your situation
- Forgetting to claim costs back under Universal Credit — you must report childcare costs monthly
- Paying less than your invoice because you expect free hours — you must pay the full amount, then hours are deducted at billing
- Not checking if your provider is registered — only registered childcare qualifies for most schemes
- Combining incompatible schemes — you cannot use Tax-Free Childcare with UC childcare costs, tax credits, or vouchers
What If I’m Still Struggling with Costs?
If you’re accessing all available support but still finding childcare unaffordable:
- Speak to your nursery — some offer payment plans, bursary places for families in hardship, or can adjust your hours
- Consider different childcare types — childminders, nursery schools, or school nurseries may be cheaper than private day nurseries
- Explore job-sharing or flexible working — reducing your hours can cut childcare costs without losing income through Tax-Free Childcare or free hours
- Check your council’s Family Information Service for alternative providers or financial support schemes
- Contact StepChange or Citizens Advice if you’re in debt due to childcare costs — they can help with budgeting and debt management
- Investigate your employer’s family-friendly policies — compressed hours, term-time working, or career breaks may be options
Next Steps
- Check your eligibility across all schemes using our funding eligibility checker
- Calculate potential savings with our childcare cost calculator
- Find nurseries in your area to compare fees: search nurseries
- Read detailed guides for the schemes you qualify for:
Most working families save several thousand pounds a year once all schemes are in place. The key is checking eligibility early and applying before you need the hours — funded places fill up fast.
Frequently Asked Questions
- How can I get help with nursery fees?
- Most UK families qualify for at least one form of childcare support. Working parents can access free childcare hours (15-30 hours per week), Tax-Free Childcare (20% government top-up), or Universal Credit childcare costs (up to 85% of fees). Non-working parents may qualify for 15 free hours from age 2 or 3. Check eligibility for all schemes as you may be able to combine them.
- What childcare help is available for working parents?
- Working parents can access: up to 30 hours free childcare from 9 months old (since September 2025), Tax-Free Childcare (up to £2,000 per child annually), Universal Credit childcare element (85% of costs up to £1,031.88/month for one child), and employer schemes like salary sacrifice or workplace nurseries.
- Can I combine different childcare funding schemes?
- Some schemes can be combined, but not all. You can use free hours alongside Universal Credit or tax credits. However, you cannot combine Tax-Free Childcare with Universal Credit childcare costs, tax credits, or childcare vouchers — you must choose the most beneficial option. Use our funding eligibility checker to compare what you could receive from each scheme.
- How much is Tax-Free Childcare worth?
- Tax-Free Childcare gives you £2 from the government for every £8 you pay into your childcare account — a 20% top-up. The maximum government contribution is £2,000 per child per year (£4,000 for disabled children). For a family paying £800/month in nursery fees, this could save £1,920 annually.
- What help with childcare costs is available if I'm not working?
- Non-working parents can access 15 hours free childcare per week for 3-4 year olds (universal entitlement). Some 2-year-olds qualify based on benefits received. You won't qualify for Tax-Free Childcare or Universal Credit childcare costs, but may be eligible for local authority hardship funds, charitable grants, or support if you're studying, doing voluntary work, or have specific circumstances.
- How does Universal Credit help with childcare costs?
- Universal Credit can pay up to 85% of childcare costs (up to £1,031.88/month for one child, £1,768.94 for two or more). You claim costs back monthly, so you pay upfront then receive reimbursement. Both parents must be working (or one working and one unable to work due to disability/caring responsibilities). You cannot combine this with Tax-Free Childcare.
- Are there any childcare grants for low-income families?
- Yes, several options exist: the Family Fund supports families with disabled children, Turn2Us provides grants for families in crisis, some local authorities offer hardship funds for childcare, and charitable trusts like the Educational Grants Advisory Service (EGAS) may help. Your nursery may also offer bursary places or payment plans for families facing temporary financial difficulty.
- What is the Disability Access Fund and who qualifies?
- The Disability Access Fund provides £881 per year (2025/26) to help disabled children access their free childcare hours. Your child qualifies if they receive Disability Living Allowance and you're claiming free early education for 3-4 year olds. The fund is paid directly to your nursery or childcare provider to support inclusion and access.
Related Tools
Related Articles
30 Hours Free Childcare: Eligibility, How to Apply, and What's Covered
Working parents of 3–4 year olds in England can get 30 hours free childcare per week. Check eligibility, how to apply, and what's included.
Read moreGovernment Childcare Account: How to Set Up and Use It
Set up your government childcare account to access Tax-Free Childcare and free hours. Step-by-step guide to setup, payments, and reconfirmation.
Read moreChildcare in Northern Ireland: Free Pre-School & Tax-Free Childcare Guide (2026)
Childcare support in Northern Ireland — free pre-school education, Tax-Free Childcare, Sure Start, and how to apply in 2026.
Read moreFind the Perfect Nursery
Search thousands of nurseries across England and Scotland, compare ratings, and read verified parent reviews.