Childcare costs in the UK: how they compare globally and what help is available

How much does childcare cost in the UK?

For children under two, the average cost of full-time nursery care is now £305.11 per week, according to a new report from Coram Family and Childcare. Part-time care (25 hours per week) costs an average of £159.61 per week.

These prices have increased significantly in recent years. Part-time care is up 7.7% from £150.89 in 2023, while full-time care has risen by 6.4%. Parents are feeling the strain, with childcare costs often equalling or exceeding mortgage payments.

Why is childcare in the UK so expensive?

One of the key reasons childcare is so costly in the UK is the strict staff-to-child ratios. For children under two, the legal requirement is one carer per three children, meaning nurseries need a high number of staff to operate.

Additionally, while the government provides some funding for free childcare hours, many nurseries argue it doesn’t cover the full cost, forcing them to raise fees to stay open. Rising operational costs, including staff wages and national insurance contributions, have also contributed to increasing fees.

How do UK childcare costs compare internationally?

The UK is one of the most expensive countries for childcare globally. According to the Organisation for Economic Co-operation and Development (OECD), it ranks as the third most expensive country for childcare for families earning the average wage, behind only Switzerland and New Zealand.

For lower-income families (earning 67% of the average wage), the UK is the most expensive country for childcare, along with the Czech Republic and Cyprus.

By contrast, many Nordic countries offer significantly more affordable childcare:

• Denmark: Parents pay no more than 30% of the total cost, averaging around £460 per month.
• Norway: Nursery fees are capped at approximately £200 per month.
• Sweden: Childcare costs around £100 per month, and parents receive a monthly government allowance of around £85 to help cover costs.

These lower costs are largely due to greater government subsidies and funding, which help reduce the financial burden on families.

What is being done to reduce childcare costs in the UK?

The UK government has introduced measures to help ease the burden on parents. Since September 2024, working parents of children aged nine months to four years have been eligible for 15 hours of free childcare per week during term time. By September 2025, this will increase to 30 hours per week for eligible families.

A £204 million cash boost for nurseries was also announced in the 2023 spring Budget to increase funding for early years entitlements. However, childcare providers have warned that funding still falls short of covering real costs, meaning prices may continue to rise.

What financial support is available for parents?

Parents in the UK may be able to access financial help through several government schemes, including:

• Tax-Free Childcare: For every £8 parents pay into a childcare account, the government adds £2, up to a maximum of £2,000 per child per year.
• Universal Credit: Eligible families can claim back up to 85% of childcare costs.
• Free early education and childcare: Available for some two-year-olds and all three- and four-year-olds, depending on eligibility.
• Tax Credits: Some families may still be eligible for childcare support under Working Tax Credit (though this is being replaced by Universal Credit).

To check what help you’re entitled to, visit the gov.uk website or contact your local council for more details.

Childcare in the UK remains one of the biggest financial pressures on parents, with costs continuing to rise. While government support is increasing, many families are still struggling to afford full-time care. Looking at countries like Denmark and Sweden, where childcare is significantly more affordable, raises questions about whether the UK could do more to ease the financial strain on parents.

For now, parents should explore all available financial support options to help manage costs.

Read more:

• Parents risk losing free childcare as nursery closures loom
• Ministers scrap ‘free childcare’ label as frustration grows over soaring nursery fees
• Government to address nursery staff shortages before expanding childcare services