Understanding UK Childcare Costs: Breaking Down Nursery Fees in 2025

Choosing a nursery for your child is one of the biggest and most exciting milestones a parent of young children can face. But with so many childcare options available, and cost variations, it’s only natural to have questions. At Grandir UK, we believe in making things simple, transparent and supportive for families. That’s why we’ve put together this simple guide that breaks down how nursery fees work in 2025, what influences pricing and how to take advantage of government funded hours – we want your journey navigating nursery fees to be as smooth as possible.

What affects nursery costs?

Childcare needs vary from family to family, meaning nursery fees can also vary depending on a few key factors. Understanding these factors can help you make a better-informed decision for your family:

Location

Nurseries that fall in certain high-demand areas, for example, London, may have higher fees than those in smaller or more rural areas – this reflects local costs and demand.

Age

Nursery fees do slightly vary with a child’s age. A child under two typically requires more one-on-one care, which means higher staffing ratios and slightly higher costs.

Type of care

Whether you’re seeking full-time, term-time, year-round or part-time childcare, flexible options at varying fees are available to suit your lifestyle and schedule.

Days and sessions

Nurseries usually allow you to register your child for different days and sessions depending on your needs. Typically, the more sessions you book, the more cost-effective it becomes, especially for a full-time nursery place.

Support available for families

Funded childcare hours – what your family could be eligible for

A range of Government funded childcare hours are available to support families – but it’s important to note that these are allocated for term-time use only (typically 38 weeks per year).

Because our nurseries operate all year round, we stretch these funded hours across the full calendar year. This approach provides consistent invoicing and helps with monthly budgeting. For example, instead of receiving 15 hours per week over just term time, families can benefit from around 11 hours per week all year long. This applies across all eligible age groups and funding brackets.

Here’s a closer look at what your family may be entitled to:

Children aged 9 months to 23 months

Eligible working parents with children aged 9-23 months can access 15 funded hours per week (during term time). We stretch this funding to offer 11 hours per week across the entire year.

From September 2025, working parents of children who turn nine months old before 1 September will be eligible to apply for up to 30 hours of free childcare per week, continuing until their child starts school. This could save families up to £7,500 per child each year – and applications are open now.

Children aged 2 years old

Eligible working parents, as well as those receiving certain forms of Government support, can usually access 15 hours of funded childcare per week for their 2-year-old, during term time (38 weeks per year) – stretched to 11 hours per week over the year at Grandir UK.

Children aged 3 to 4 years old

All children aged 3 to 4 years old qualify for childcare funding between 15 and 30 hours per week under the Government’s FEEE programme. We stretch this funding up to 11 hours per week across the entire year (for the 15 hours funding) and 22 hours (for the 30 hours funding).

You can check your eligibility for Government supported funding here.

Some updates to funding entitlements are on the way for September 2025. Stay tuned, we’ll share updates on everything you need to know as it becomes available.

Tax Free Childcare

With the Tax Free Childcare scheme, for every £8 you contribute to your childcare account, the Government will add £2 – this means it’s possible to save up to £2,000 per child per year. This is a fantastic way to make your money go further!

Universal Credit for childcare

Working families who receive Universal Credit can claim back up to 85% of childcare provider costs, providing significant savings each month.

How Grandir UK makes childcare work for you

• Easy payment plans: Spread your costs over manageable monthly payments, with no unexpected surprises.
• Sibling discounts: If you have more than one child with us, you may be eligible for a discount.
• Nursery full-time cost savings: Choosing full-time care often comes with a reduced daily rate, perfect for busy working families

You can also take advantage of our new Nursery Fee Calculator – a quick and easy tool which makes finding out the cost of childcare nice and easy.

Start your childcare journey with confidence

At Grandir UK, we’re here to support your family every step of the way. Let’s find a childcare solution that works for you. To find out more, please get in touch with our helpful Parent Engagement Team, who are here to answer all your queries.