Question 1

How many free childcare hours do I get?

Accepted Answer

From September 2025, eligible working parents can get 30 hours of free childcare per week for 38 term-time weeks per year, for children aged 9 months to 4 years old. To qualify, you and your partner (if you have one) must each earn at least £10,575/year (equivalent to 16 hours/week at the National Living Wage) and neither of you can earn more than £100,000 per year. If you are not a working parent, 3 and 4 year olds still receive 15 hours universal free childcare.

Question 2

What is Tax-Free Childcare and does it help?

Accepted Answer

Tax-Free Childcare is a government scheme where for every £8 you pay into a childcare account, the government adds £2 — effectively a 20% top-up. The maximum government top-up is £500 per quarter (£2,000 per year) per child. You can use it alongside your free hours entitlement for any additional paid hours. Eligibility mirrors the 30-hour offer: both parents must earn between £10,575 and £100,000 per year.

Question 3

What counts as childcare cost per hour?

Accepted Answer

The average UK nursery charges between £7 and £14 per hour, varying significantly by region. London rates are often £14–£20+/hour. Childminders tend to be slightly cheaper than nurseries. The free hours entitlement is funded at a government rate that may not cover all provider costs — some providers charge a top-up fee for extras like meals and nappies. Check with your provider for the exact cost per paid hour.

Question 4

Why might it not be worth returning to work?

Accepted Answer

If your salary is relatively low and childcare costs are high — particularly for children under 3 who don't yet qualify for free hours — the net monthly gain from working can be negative. This is most common when parents earn under £25,000 in high-cost childcare areas. However, the financial calculation is not the only factor: many parents return to work to maintain career progression, pension contributions, NI records, and their own wellbeing, even when childcare barely breaks even.

Question 5

Does this calculator account for pension contributions?

Accepted Answer

No — it calculates net pay based on income tax and Class 1 NI only. If you have auto-enrolment pension contributions deducted, your actual take-home will be lower (though you are building pension wealth in return). Salary sacrifice pension contributions also reduce your taxable income, which can affect your Tax-Free Childcare eligibility if your salary is close to the £100,000 limit.

Question 6

What are the eligibility requirements to qualify as a "working parent" for free childcare?

Accepted Answer

Each parent must earn at least £10,575 per year (equivalent to 16 hours/week at the National Living Wage in 2026/27) and neither can earn more than £100,000 adjusted net income. Self-employed parents count, including those just starting out. Parents on maternity, paternity, or shared parental leave are considered working during that period. The earnings threshold is checked when you apply via the Childcare Choices website  -  HMRC runs eligibility in real time using PAYE and self-assessment data.

Question 7

Can I take free hours as stretched hours across the year?

Accepted Answer

Yes  -  most providers in England offer both term-time and stretched options. Term-time: 30 hours per week for 38 weeks (570 hours/year). Stretched: roughly 22.5 hours per week spread across 51 weeks. The total annual hours are the same; the stretched option smooths out the summer gap. Not all providers offer both options, and some charge a higher session rate for stretched hours to cover the increased admin. Check with your specific nursery or childminder before assuming both are available.

Is It Worth Going Back to Work? Childcare Calculator