Childcare can cost as much as a second mortgage. The government help is real, but it's spread across several schemes that most parents only find out about by accident.
- Working parents of children from 9 months old can get 30 free hours a week, term-time. You have to apply for it.
- Tax-Free Childcare adds £2 for every £8 you pay in, up to £2,000 per child a year.
- If either parent earns over £60,000, Child Benefit starts being clawed back. Still claim it, even if you opt out of the money.
Figures for the 2026/27 tax year · last checked 2026-10-08
What it costs
Nursery fees vary hugely by area, but a full-time place for a baby often runs to £1,000 a month or more. That's why it's worth knowing every scheme that brings the bill down, and which ones you can combine.
Child Benefit: the one everyone should claim
Child Benefit is a weekly payment for each child: around £27 a week for the first and £18 for each additional child in 2026/27. You have to apply for it. It doesn't happen automatically.
If you or your partner earns over £60,000, you pay back some of it through tax (the High Income Child Benefit Charge). It's clawed back gradually, and gone completely by £80,000.
Claim it even if you earn too much. Registering means the non-working or lower-earning parent gets National Insurance credits towards their State Pension while looking after the child. You can claim and choose not to receive the payments.
Free childcare hours
If you're working parents, you can get funded hours for your child:
- 30 hours a week, for 38 weeks a year (term-time), from when they're 9 months old until they start school
- Each parent must usually earn at least the equivalent of 16 hours a week at minimum wage, and neither can earn over £100,000
- You apply through your Childcare Choices account on GOV.UK and get a code to give your provider. Apply before the term starts, and reconfirm every 3 months
Free hours are spread across the year with some providers (called stretching), so you might get fewer hours a week for 51 weeks instead. Ask what they offer, and what extras (meals, nappies, trips) they charge on top.
Tax-Free Childcare: the 25% top-up
You pay money into an online childcare account, and for every £8 you pay in, the government adds £2. It's worth up to £2,000 per child a year (£4,000 for a disabled child) and you use it to pay approved providers.
- What you pay in£8,000
- Government top-up£2,000
Nursery bill£10,000
£2 added for every £8 paid in, up to £2,000 a year per child. Free hours and Tax-Free Childcare can be used together.
You can combine it with the free hours, but you generally can't get it alongside the childcare element of Universal Credit. If you're on Universal Credit, that can cover up to 85% of your childcare costs, so it's worth comparing before you choose.
Leave and pay when the baby arrives
- Statutory Maternity Pay lasts up to 39 weeks: 90% of your average pay for the first 6 weeks, then a flat rate of around £190 a week (or 90% of pay if that's lower).
- Paternity leave is up to 2 weeks (statutory pay is the same flat rate). Shared Parental Leave lets parents split up to 50 weeks between them.
- Many employers pay more than the statutory minimum. Check your contract or staff handbook before you plan anything. It can change the numbers a lot.
Questions for your employer
"What's your enhanced maternity and paternity pay, how long do I have to have worked here to get it, and do I have to pay it back if I don't return?"
Bringing it together
- Claim Child Benefit as soon as the baby is born.
- Open a Tax-Free Childcare account and get your free-hours code before you need a place.
- Ask your employer about enhanced leave pay and any childcare vouchers or salary-sacrifice schemes still available.
- Consider a Junior ISA or a savings pot for the child once the basics are covered.
Watch the £100,000 cliff. If your adjusted net income goes over £100,000, you lose both free hours and Tax-Free Childcare. Paying more into your pension can bring your income back under the line.