Aug 24, 2026
If you're starting to explore childcare options, one of the first questions you'll probably ask is: "Is nursery free in the UK?" or “Does funding mean my nursery care is free?” The short answer is that funded childcare can significantly reduce nursery costs, but it doesn’t necessarily mean that every aspect of your child’s nursery experience is completely free. The amount of funding your family receives depends on your child's age and your individual circumstances, and there may still be some costs for services that fall outside the government's funding programme.
At The Old Station Nursery, we know that understanding childcare funding can feel overwhelming. Between funded hours, Tax-Free Childcare and different nursery fee structures, it’s not always clear what you’ll actually pay.
That’s why we’ve created this guide, to explain how funded childcare works in England (where our nurseries are based), what it covers, what it doesn’t cover, and how you can estimate your own nursery costs with confidence.
In this guide, we’ll cover:
By the end of this guide, you’ll have a much clearer understanding of what support is available and what you can expect when choosing a nursery for your child.
Please note: childcare funding differs across the UK. Scotland, Wales and Northern Ireland have their own childcare funding schemes and eligibility criteria.
One of the biggest misconceptions about funded childcare is that it means every family will pay exactly the same amount for nursery.
In reality, every family’s childcare costs are different.
The amount you pay depends on a range of factors, including:
This means that while one family may pay very little for a few sessions each week, another may choose full-time childcare and have a higher monthly bill after funding has been applied.
To help illustrate how funding can affect nursery fees, here are a few simplified examples. For these examples, we’ve priced the nursery at £80.60 per day.
Example 1: Two days per week
Sarah has a two-year-old who attends nursery for two full days each week.
Without any government support, she would pay the nursery’s standard daily fees (2 x £80.60) at £161.20.
Sarah qualifies for 30-hour funding and, once her funded childcare entitlement is applied, the amount she pays reduces significantly, leaving only the remaining childcare costs and any applicable chargeable extras.
At this nursery, funding is stretched across the entire year (more information on this later), meaning that she receives 7.45 funded hours each day.
As her booking pattern is only two days, Sarah has not used up her total funded allowance.
After funding is applied, her total bill is £41.11 for the two days.
Example 2: Three days per week
James and Priya’s three-year-old attends nursery three days each week. The daily fee is the same as in Example 1.
Like Example 1, their 30-hour funded childcare covers part of their child’s attendance, helping to reduce their overall monthly fees.
As their booking pattern covers three days, they are using up their full entitlement of funded hours per week (22.35 hours).
Their total bill for three days is £61.66.
Example 3: Full-time nursery care
Emma and Tom require childcare five days a week so they can both work full time.
Although funded childcare won’t usually cover every hour their child attends nursery, it can make a substantial difference to their monthly fees by reducing the number of paid hours.
Like Example 2, they are using up their full funding entitlement – which is stretched over the first three days of their booking pattern.
The last two days of the week are charged at the private rate of £80.60. They also receive a small 5% discount on their weekly bill because their booking pattern spans the entire week.
As the fourth and fifth days in their booking pattern are charged at the full ‘private’ rate, they are not subject to any chargeable extras.
Their total bill for the 5 days is £211.72.
The easiest way to understand what you could pay is to use the Nursery Fee Calculator on your chosen Old Station Nursery location page.
Our calculator has been designed to provide a personalised estimate using our estimated 2026 nursery fees. Simply select your preferred nursery, enter your child’s age and attendance pattern, and the calculator will estimate your nursery fees while taking funded childcare into account where applicable.
Because every nursery has slightly different fees and every family’s childcare requirements are different, using the calculator gives you a much more accurate estimate than relying on average nursery costs.
If you’d like to discuss your options or understand how funding may apply to your family’s circumstances, our nursery teams are always happy to help.
The government offers funded childcare to help families with the cost of early education and childcare. The amount of support available depends on your child’s age and your family’s circumstances.
At The Old Station Nursery, we offer funded childcare to eligible families in line with the government’s guidance, helping to make high-quality early years education more accessible.
Many children are eligible for 15 hours of funded childcare each week, giving them the opportunity to learn, play and develop in a nurturing nursery environment.
This includes the universal 15-hour entitlement for all 3- and 4-year-olds in England, as well as eligible 2-year-olds whose families receive additional support or who meet certain criteria.
The funding is provided by the government and is designed to support your child’s early learning while helping families manage childcare costs.
Eligible working families may be able to receive up to 30 hours of funded childcare each week, from the term after their child turns 9 months until they start school.
This enhanced entitlement provides additional financial support for families who require more childcare, making it easier for parents and carers to balance work and family life.
Rather than receiving all 30 hours during school term time, many nurseries choose to stretch the funding across the year. This allows families to benefit from funded childcare for almost the entire year, providing greater consistency and making it easier to budget for childcare.
The government provides 1,140 funded childcare hours each year, which is equivalent to 30 hours per week for 38 weeks during school term time.
At The Old Station Nursery, where applicable, we spread these funded hours across 51 weeks of the year. This means your child receives approximately 22.35 funded hours each week, rather than 30 hours during term time only.
For example, if your child attends nursery for three full days each week (8:00am–6:00pm):
Many families find this approach more convenient because it provides consistent childcare throughout the year, rather than funding stopping during school holidays.
Childcare funding has expanded significantly in recent years, and many more families are now eligible for support than they realise.
Eligibility can depend on factors including how much you and your partner earn, your working circumstances and your child’s age. Funded childcare also usually begins from a set eligibility period rather than immediately on your child’s birthday.
You can find the most up-to-date information and check your eligibility on the official GOV.UK website. <hyperlinked>
One of the most common questions parents ask is:
“If I’m receiving funded childcare, why do I still have nursery fees?”
While your funded childcare hours are provided free of charge, government funding
At The Old Station Nursery, we believe it’s important to be open and transparent about how funding works, so you know exactly what to expect before your child starts with us.
For this reason, many nurseries apply chargeable extras. These charges help cover items and experiences that fall outside the funded childcare entitlement, ensuring children continue to enjoy a high-quality nursery environment every day.
While these costs may vary between nurseries and according to the sessions your child attends, Additional Service Costs can contribute towards:
These are all part of creating an engaging, stimulating and nurturing environment where children can learn, explore and develop through play.
Government funding is intended to support the delivery of early years education and childcare. It doesn’t fully fund the wider range of resources and experiences that many nurseries choose to provide.
That’s why many childcare providers across England make a distinction between the funded childcare entitlement and the additional services that enhance each child’s day.
At The Old Station Nursery, we are committed to providing rich learning experiences that go beyond the basics. From creative activities and outdoor adventures to nutritious meals and high-quality resources, we want every child to have the opportunity to thrive in a welcoming and inspiring environment.
These fees can vary between nurseries, depending on how much additional enrichment they offer – with some nurseries not charging at all. On days when funding is applied, this can vary from around £5-10 per day.
If these fees apply to a nursery you’re considering, they will be clearly indicated. Use our to work out the costs at your local nursery.
As well as funded childcare, many families may be eligible for Tax-Free Childcare – a government scheme designed to help working parents reduce the cost of approved childcare, including nursery fees.
If you’re paying for childcare, it’s well worth checking whether you qualify, as Tax-Free Childcare can significantly reduce your out-of-pocket costs.
Tax-Free Childcare works a little like an online savings account for childcare.
You pay money into your childcare account, and for every £8 you contribute, the government adds £2. This means the government contributes 20% towards your childcare costs, up to a maximum of £2,000 per child per year (or £4,000 for eligible children with disabilities).
You can then use the money in your account to pay your nursery fees.
Yes. In many cases, families can use Tax-Free Childcare alongside their funded childcare entitlement.
For example, your funded childcare may reduce the number of hours you need to pay for, while Tax-Free Childcare can then help reduce the cost of any remaining paid sessions.
Using both schemes together can make a significant difference to your overall childcare costs, particularly if your child attends nursery for more than their funded hours.
Eligibility for Tax-Free Childcare depends on your family’s individual circumstances, including your employment status and income, and your partner’s where applicable.
Because eligibility criteria can change, we recommend checking the latest guidance on the official GOV.UK website to find out what support is available to you.
The quickest way to find out if you’re eligible is by using the government’s online childcare service, which allows you to:
We recommend checking your eligibility as early as possible, particularly if you’re planning your return to work or looking ahead to your child’s nursery start date.
Want to find out more about childcare funding, when to apply and how to apply in your local authority? Head over to our Funding Ready page.
Ed, I’d just clarify whether this is 7 hours 45 minutes or 7 hours 27 minutes (in the decimal format converted into time)
Same here – 22 hours 35 minutes or 22 hours 21 minutes (as a decimal value converted into a time).
Ed, I’ve just tweaked this section to bring it in line with the info here:
https://beststartinlife.gov.uk/childcare-early-years-education/15-and-30-hours-support/
clarifying that all families with 3-to-4-year-olds have access to 15 hours, and those who get extra support have access to 15 hours for 2-year olds.
Same query as above.
7 hours 39 minutes
2 hours 33 minutes
Rejigged this section just to clarify when that eligibility period falls.
Added this in just to communicate that the government states that the funding isn’t designed for this – with an external link to the GOV UK page to add that strength.
Link: https://www.gov.uk/government/publications/early-education-and-childcare–2/early-education-and-childcare-valid-from-1-april-2026#:~:text=Government%20funding%20is%20not%20intended%20to%20cover%20the%20costs%20of%20meals%2C%20other%20consumables%2C%20additional%20hours%20or%20additional%20services.
Can we double check there’s no overlap with the elements that are required to deliver the funded early-years provision?
Internal link: https://www.theoldstationnursery.co.uk/fee-calculator/
External link: https://www.gov.uk/tax-free-childcare/check-if-youre-eligible