What does childcare actually cost after the government top-ups?
Free hours, Tax-Free Childcare, Universal Credit — there are multiple forms of support. See which ones you qualify for and what your true monthly bill looks like after every entitlement is applied.
Best option for you: Tax-Free Childcare (20% government top-up)
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What you might calculate next
How it works
Free hours — who gets what
15 hours/week (38 weeks/year) for all 3–4 year olds. 30 hours for 3–4 year olds with working parents each earning under £100,000. From September 2024: 15 hours extended to children aged 9 months to 3 years (working parents, each earning ≤ £100k).
Tax-Free Childcare
For every £8 you pay into a TFC online account, the government adds £2 — a 20% top-up. Maximum government contribution is £500 per quarter (£2,000/year) per child, or £1,000/quarter (£4,000/year) for disabled children. Not available on Universal Credit or if either parent earns over £100,000.
Universal Credit childcare element
UC covers 85% of eligible registered childcare costs, up to £1,014.63/month for one child or £1,739.37/month for two or more children. Must use a registered provider. Paid in arrears — you must have the cash flow to pay upfront.
TFC vs UC — choose one
You cannot claim both Tax-Free Childcare and Universal Credit at the same time. For most people, if you are on UC, the childcare element is usually more valuable than TFC at lower income levels.
Term-time only or year-round?
Free hours are available 38 weeks/year (term time) at 15 or 30 hours, or 22–24 hours/week stretched over 52 weeks at some providers. Check your local authority — the "stretched offer" means you get the same total hours spread across more weeks.