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How Much Does Childcare Cost in London?

By Filipino Nanny | Updated 21 August 2026

Childcare costs in London vary sharply by childcare type, age, hours and eligibility for funded support. Coram Family and Childcare’s 2026 survey shows that, for an under-two child whose family is not eligible for the working-parent entitlement, 25 hours a week averaged £238.01 at an Inner London nursery and £226.39 with an Inner London childminder; Outer London averages were £216.94 and £199.09 respectively.

A nanny is costed differently because the household is usually paying an employee rather than buying a place in a setting. This page therefore keeps nursery, childminder and after-school benchmarks separate from nanny employment costs instead of pretending they are directly interchangeable.

2026 London childcare cost benchmarks

Childcare Inner London Outer London What the figure represents
Nursery, under 2 £238.01/week £216.94/week 25 hours, family not eligible for working-parent entitlement
Childminder, under 2 £226.39/week £199.09/week 25 hours, family not eligible for working-parent entitlement
Nursery, under 2 with working-parent entitlement £185.10/week £171.39/week 50 hours, after 30 funded hours in Coram’s 2026 model
Childminder, under 2 with working-parent entitlement £179.83/week £154.50/week 50 hours, after 30 funded hours in Coram’s 2026 model
After-school club £68.07/week £72.66/week Coram 2026 regional weekly average
Childminder to 6pm £131.57/week £116.95/week Coram 2026 regional weekly average

These are survey averages, not quotes. Coram’s 2026 data was collected from local authorities between October and December 2025. Actual provider charges, funded-hour delivery, consumables, deposits, holiday costs and availability vary. Always get a current quote from the provider and check your own eligibility.

Why funded childcare can change the nursery or childminder comparison

Since September 2025, eligible working parents in England can receive 30 funded hours a week for 38 weeks a year for children from nine months to four years, subject to the scheme’s rules. Coram notes that a 25-hour place for an eligible under-two may therefore be theoretically free during term time, while families who are not eligible continue to pay the full provider cost.

Funding does not necessarily mean a zero annual bill. The entitlement covers 38 weeks, providers may stretch hours across more weeks, and additional voluntary charges or hours outside the entitlement can still affect the family’s actual spend. Use the current GOV.UK Free Childcare for Working Parents guidance for eligibility and application rules.

How is nanny cost different?

A nanny is usually an employee of the household when the family hires the nanny directly and the individual is not genuinely self-employed or supplied as an agency worker. That means the cost question is not simply “what is the hourly childcare price?” It can include gross salary, employer National Insurance where due, workplace-pension duties where applicable, paid holiday, payroll administration and the agency placement fee.

Our agency fees page is the canonical owner of the placement charge. Our nanny payroll guide explains PAYE and National Insurance. We have deliberately not published a new 2026 nanny salary band on this page because the agency’s current placement-salary dataset has not yet been verified for publication. Old £10–£15/hour figures previously on the site were retired because they conflicted with newer site content and should not be used for budgeting.

What our 203 enquiries show about why nanny cost needs individual scoping

Our current client-enquiry dataset contains 203 submissions from 13 April 2025 to 20 August 2026. Of those, 118 selected full-time and 85 selected part-time. The form also asks families to enter weekly hours, and those answers range from very short part-time patterns to full working weeks and longer live-in schedules.

The important business-side pattern is that the word “nanny” does not define the cost basis on its own. Hours, days, live-in/live-out status, child-related duties and any genuine household responsibilities have to be scoped before a salary can be compared. This is why we do not convert a generic nursery weekly fee into a generic “nanny equivalent”.

When can a nanny become more cost-efficient for a family?

There is no universal break-even point. A nanny is one employee caring for the family’s children within the agreed role, while nursery and childminder prices are generally charged per child and provider. Families with multiple children, long working days or complex school logistics may value the different structure, but the financial comparison depends on the actual nanny salary and employer costs, not a generic claim that “nannies are cheaper for two children”.

If you are comparing care models rather than just prices, use nanny vs nursery and nanny vs childminder.

What does Tax-Free Childcare cover?

Tax-Free Childcare can be used with approved childcare providers, including registered nurseries, registered childminders and eligible registered nannies. The government adds £2 for every £8 paid into the childcare account, up to the scheme’s annual limit, subject to eligibility. Provider approval matters, so check the provider before assuming the support applies.

How should you compare your own childcare cost?

  1. Write down the exact weekly hours of childcare you need, including commuting and handover time.
  2. Check whether your child and household qualify for funded childcare or Tax-Free Childcare.
  3. Get current nursery or childminder quotes for the actual sessions available.
  4. If considering a nanny, define full-time/part-time and live-in/live-out status before asking for salary guidance.
  5. Add household-employer costs and the agency fee to the nanny side of the comparison.
  6. Compare the care model and timetable as well as the headline amount.

If you are still choosing the childcare category, start with our London childcare options guide. If you have decided you need in-home care, review the nanny service and our live-in vs live-out comparison.

Sources and methodology