UK Childcare Costs 2025: Nursery Fees by City, Tax-Free Childcare & Calculator

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. As demand for nursery places continues to rise, fees vary widely between cities and nations, creating a significant regional divide in childcare affordability.

Using data from Nuuri’s national nursery marketplace, combined with government and NDNA figures, we’ve analysed the average weekly cost of full-time private nursery care for under-3s in 2025. This analysis goes beyond simple fees, exploring how affordability differs across the country once salaries, housing, and government funding are taken into account.

Find the Best Nurseries Near Me: Starting Your Search

For many parents, the first step is finding a reliable and affordable nursery close to home or work. Searching for nurseries near me is a common starting point, but understanding the true cost requires more than just a quick search. The cost is heavily influenced by local economic factors, including staff wages, property costs, and the availability of funded places.

Average Nursery Fees Across the UK (2025)

The data below provides a snapshot of the average weekly and annual costs for full-time nursery care in England, highlighting the significant financial commitment for families, particularly in London.

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. This staggering figure is 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 £33-34k.

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%. This growing disparity underscores the crisis in childcare affordability.

“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.”

Affordability Snapshot: Fees vs Earnings vs Housing

To understand true affordability, it is crucial to compare nursery fees against local earnings and housing costs. The table below illustrates the dramatic regional differences in financial pressure on families.

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.

Government Support: Funded Hours and Tax-Free Childcare

Understanding the available government support is essential for managing childcare costs. Support varies significantly across the four nations of the UK.

England

• Funded Hours:
  • 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 +.
• Tax-Free Childcare (TFC):
  • The Tax-Free Childcare scheme is a UK-wide government initiative that helps working families with the cost of childcare.
  • For every £8 you pay into your online childcare account, the government will add £2, up to a maximum of £2,000 per child per year (or £4,000 for disabled children).
  • This scheme can be used to pay for approved childcare, including nurseries, childminders, and after-school clubs.
  • Parents apply via HMRC’s Childcare Service.

Scotland

• All 3- and 4-year-olds plus 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 are currently under review.

Use Our Childcare Cost Calculator for a Personalised Estimate

The tables above provide national averages, but your personal cost will depend on your specific circumstances, including your child's age, your location, and your eligibility for government support like Tax-Free Childcare and funded hours.

To get a precise, personalised estimate of your net childcare costs, we strongly recommend using our Nuuri Cost Calculator. This tool takes into account all the variables - including your income and location - to help you budget effectively and plan ahead.

Summary and Next Steps

Nursery fees alone only tell part of the story. True childcare affordability depends on income, housing, and funded-hours policy - all of which 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.

How parents can plan ahead:

1. Start early: Popular nurseries near me in major cities fill 9-12 months ahead.
2. Compare true net costs: Use the childcare cost calculator to view funded-hour eligibility and net fees.
3. Check salary vs fee ratios to judge affordability.
4. Balance housing and childcare spend: Moving from Inner to Outer London can save £8,000 a year on fees alone.

Related Reading

• Government Support for Nursery Childcare in the UK - 2025 Update
• Understanding Nursery Costs in the UK - Updated 29 July 2025
• Free Childcare Calculator UK: Estimate Nursery Fees & Government Support | Nuuri

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)