The Cost of Childcare in 2025 - Which UK Cities Are Most Expensive for Nursery Fees?

Childcare costs remain one of the biggest financial pressures facing UK families - and as demand for nursery places continues to rise, fees vary widely between cities and nations.

Using data from Nuuri’s national nursery data platform, together with the Coram Family and Childcare Survey 2025, ONS earnings data and the UK House Price Index (July 2025), this article explores how childcare affordability differs across the country once salaries, housing and government funding are taken into account.

Average nursery fees across the UK (2025)

Area	Age group / entitlement basis	Average weekly cost	Annual equivalent
England (under 2, 50 hours)	After working-parent entitlement	£238.95	£12,425
England (age 2, 50 hours)	After entitlement	£225.70	£11,736
England (3–4 yrs, 50 hours)	Paying 20 extra hours alongside 30 funded	£126.94	£6,601
Inner London (50 hours)	Full-time benchmark (Nuuri & Coram data)	£575	£30,000
Outer London (50 hours)	Full-time benchmark (Nuuri & Coram data)	£420	£22,000

Sources – Coram Family and Childcare Survey 2025; London Datastore childcare series 2024–25; Nuuri internal dataset (2025).

Inner London now exceeds £30,000 per year for full-time under-2 care - the equivalent of nearly 70 % of the city’s median take-home salary for one working parent. Outer London remains extremely high at around £22,000, roughly matching the entire after-tax income of a full-time worker on £33–34 k.

Childcare costs rising faster than pay

Over the past five years, average nursery fees have increased by around 20 %, while median earnings have grown by only 10-15 %.

“Childcare is essential infrastructure - yet rising costs mean many families are effectively paying a second rent,” says Steven Clarke, Founder & CEO of Nuuri. “By aggregating nursery data nationwide, we can see just how uneven the picture is - and where local support is most needed.”

The north–south divide

London and the South East remain the priciest regions, while Scotland, Wales and Northern Ireland show lower averages. Yet cities such as Edinburgh and Bristol have seen the fastest year-on-year growth, driven by staff-cost inflation and a shortage of places.

Why costs vary so widely

• Staffing and wage pressures - nurseries must compete with broader labour-market pay rises, particularly in London and major cities.

• Premises and property costs - rent, utilities and insurance are highest in Inner London.

• Funding shortfalls - expanded funded-hours schemes are not fully reimbursed by local authorities, forcing nurseries to offset costs elsewhere.

But the impact on parents depends on local earnings and housing.

Affordability snapshot - fees vs earnings vs housing

City / Region	Typical full-time nursery fee (under-2)	Median annual full-time salary (2024)	Average house price (Jul 2025)
Inner London	£30,000	£46,400	£630,000
Outer London	£22,000	£42,300	£485,000
Edinburgh	£18,200	£38,500	£289,000
Bristol	£17,700	£37,500	£349,000
Manchester	£17,200	£36,000	£249,000
Leeds	£16,400	£35,000	£240,000
Birmingham	£16,100	£34,800	£230,000
Cardiff	£15,600	£35,100	£268,000
Glasgow	£14,300	£38,500 (Scotland median)	£191,000
Belfast	£13,800	£34,600 (NI median)	£171,000

Sources - Coram Family and Childcare Survey 2025; ONS ASHE 2024; ONS UK House Price Index (July 2025); Nuuri dataset 2025.

Even with higher London salaries, childcare consumes half or more of one parent’s net income in many boroughs - a level unmatched elsewhere in the UK.

Funded childcare support by nation (2025)

England

• 15 hours free for all 3- and 4-year-olds (38 weeks).

• Up to 30 hours for eligible working parents.

• Expansion through 2024–25 adds funded hours for children aged 9 months +.

• Apply via HMRC’s Childcare Service.

Scotland

• All 3- and 4-year-olds + eligible 2-year-olds get 1,140 hours per year (≈ 30 hours term-time).

• Hours can be shared across council, private and childminder settings.

Wales

• The Childcare Offer for Wales gives working parents of 3- and 4-year-olds up to 30 hours per week for 48 weeks.

• Flying Start supports some 2-year-olds in specific areas.

Northern Ireland

• Most 3- and 4-year-olds receive 12.5 hours per week (term time).

• Expansion plans under review.

“Parents often don’t realise how differently the systems work until they apply,” notes Nuuri's CEO. “Nuuri shows which nurseries accept funded hours and how schemes differ by nation - making comparisons simpler.”

How parents can plan ahead

• Start early - popular nurseries in major cities fill 9-12 months ahead.

• Compare true net costs - use Nuuri filters to view funded-hour eligibility and cost calculator page.

• Check salary vs fee ratios to judge affordability.

• Balance housing and childcare spend - moving from Inner to Outer London can save £8,000 a year on fees alone.

Summary

Nursery fees alone only tell part of the story. True childcare affordability depends on income, housing, and funded-hours policy - and those vary dramatically across the UK.

By combining live nursery data with regional salary and property benchmarks, Nuuri helps families and policymakers understand where childcare pressures are greatest - and what “affordable” really means.

Related reading

• Understanding funded childcare hours in England

• What age should my child start nursery?

• How to choose the right nursery for your child

Data sources

• Coram Family and Childcare Survey 2025

• ONS Annual Survey of Hours and Earnings 2024

• ONS UK House Price Index (July 2025)

• London Datastore (2024)

• Nuuri internal listing data (2025)