Returning to Work: Childcare Options to Suit Your Budget in the UK
Published 10th of July 2012·Updated 28 April 2026
Reviewed by: Reviewed for accuracy April 2026
Returning to work after having a baby means finding childcare you trust at a price you can afford. The main options in the UK are family care, childminders, day nurseries, and nannies. Each varies significantly in cost, flexibility, and suitability depending on your child's age and your working hours.
Short Summary
Family care is free or low-cost, but relies on willing relatives and may not suit full-time hours. Childminders typically charge £5 to £10 per hour and offer a homely setting registered with Ofsted.
Day nurseries are regulated by Ofsted and can take children from six weeks old. Costs vary widely by region, but average around £50 to £70 per day in most parts of England.
Nannies are the most expensive option, costing £250 to £600 per week depending on experience and location. As their employer, you are responsible for their tax and National Insurance contributions.
The government offers 15 hours of free childcare per week for all children aged three and four in England. Working parents of children aged nine months to three years may qualify for up to 30 hours free, subject to income criteria.
Is family care a realistic option?
Grandparents, siblings, and other relatives are the most popular childcare choice in the UK, mainly because they are trusted and often free. Around a third of working parents in England rely on grandparents for at least some childcare, according to Age UK research.
The main limitations are practical: relatives may not be available for full working days, may struggle with very young babies, and there is no formal Ofsted registration or first aid training required. If you go down this route, have a clear conversation about expectations, hours, and any contribution towards costs such as fuel or food.
What does a childminder cost and how do they work?
A childminder looks after your child in their own home, typically alongside a small number of other children. In England, all childminders must register with Ofsted, hold a paediatric first aid certificate, and pass a DBS (Disclosure and Barring Service) check.
Childminders can care for up to six children at a time, with no more than three under the age of five. This means your child gets more individual attention than in a large nursery. Most childminders work Monday to Friday, roughly 8am to 6pm, though some offer more flexible hours. Costs typically range from £5 to £10 per hour depending on your area, with London rates at the higher end.
How much does a day nursery cost?
Day nurseries are Ofsted-regulated settings that can accept children from as young as six weeks old. They operate set hours, usually 7:30am to 6pm, and offer structured activities alongside care.
The average full-time nursery place costs around £14,000 per year in England, according to the Coram Family and Childcare Trust's annual survey. Costs vary considerably by region: London nurseries often charge £18,000 or more per year, while northern England and Wales tend to be lower. Part-time places are available at most nurseries and can reduce the total cost substantially.
| Childcare type | Typical cost | Age from | Ofsted-registered |
|---|---|---|---|
| Family care | Free or low-cost | Any | No |
| Childminder | £5-£10/hour | Any | Yes |
| Day nursery | £50-£70/day | 6 weeks | Yes |
| Nanny (live-out) | £250-£600/week | Any | Optional |
What does a nanny do and how much do they cost?
A nanny cares for your child in your own home, which keeps your child in a familiar environment and provides one-to-one attention. Many nannies will also help with child-related tasks such as school runs, cooking children's meals, and tidying children's spaces.
Nannies are the most expensive option. A live-out nanny typically costs between £250 and £600 per week gross, depending on experience, qualifications, and location. You become their employer, which means you must handle PAYE tax, National Insurance, holiday pay, and a workplace pension. HMRC provides a PAYE calculator to help with this. There is no legal requirement for nannies to hold qualifications, but many hold a CACHE Level 3 Diploma in childcare or an equivalent NVQ.
What government help is available with childcare costs?
The UK government offers several forms of childcare support that can significantly reduce what you pay.
Tax-Free Childcare lets eligible working parents claim 20 per cent of childcare costs, up to £500 per quarter per child (£1,000 if your child is disabled). You pay into a government-backed account and the government tops it up. You cannot use Tax-Free Childcare at the same time as the childcare element of Universal Credit.
Free childcare hours apply to all children aged three and four in England (15 hours per week, 38 weeks per year). Since April 2024, the free hours entitlement has been extended: eligible working parents of children aged nine months and over may qualify for 15 hours per week, rising to 30 hours per week for three and four year olds. Eligibility depends on both parents earning at least the National Living Wage equivalent for 16 hours per week.
When should you start looking for childcare?
Start researching childcare during your pregnancy if possible. Many good nurseries and childminders in popular areas operate waiting lists of six months to a year or more. Applying early significantly improves your chances of securing a place that fits your return-to-work date.
If your employer runs an on-site or subsidised nursery, check with your HR department well before your maternity or paternity leave ends.
Frequently Asked Questions
What is the cheapest childcare option in the UK?
Family care provided by grandparents or other relatives is typically free, making it the lowest-cost option. After that, childminders tend to be cheaper than day nurseries for part-time hours, though costs depend heavily on your area.
Can I use my free childcare hours with a childminder?
Yes. Registered childminders in England can offer the government-funded free hours entitlement for eligible three and four year olds. Not all childminders sign up for the scheme, so confirm this before you book.
What is Tax-Free Childcare and who qualifies?
Tax-Free Childcare is a government scheme where you pay into an account and the government adds 20 per cent, up to £500 per quarter per child. Both parents generally need to be working and earning at least the National Living Wage for 16 hours per week, and neither can earn over £100,000 per year.
Do I have to pay a nanny's National Insurance?
Yes. When you employ a nanny, you become their employer and must deduct income tax and National Insurance from their wages via PAYE, and pay employer's National Insurance on top. HMRC has a dedicated service for nanny payroll, or you can use a specialist payroll provider.
What age can a child start at a day nursery?
Most day nurseries accept children from six months old, though some will take babies from six weeks. Places for babies under one year are usually the most expensive and in highest demand, so register your interest as early as possible.
How do I check if a childminder or nursery is Ofsted-registered?
You can search the Ofsted register at ofsted.gov.uk to confirm registration and view the most recent inspection report. Only use Ofsted-registered providers if you want to use Tax-Free Childcare or free hours entitlement.