Many parents weigh the decision of whether to send their little ones to a nursery or keep them at home for childcare. Key questions often are: how much will nursery care cost, and could home‑based care actually be cheaper or more practical? This article addresses those concerns, presenting typical nursery fees in the UK, their comparison to home childcare, and key considerations for parents.

How much does nursery cost nowadays?

Recent data from Coram Family and Childcare (2025) helps illustrate the typical fees many UK families face. In England, a full‑time nursery place for a child under two (approximately 50 hours per week) now averages £238.95 per week after funding entitlements. Costs for two‑year‑olds are slightly lower, and for children aged three to four, the weekly cost can drop further.

However, costs vary significantly by region. For instance, nurseries in inner London tend to be among the most expensive, while those outside major cities tend to be more affordable. Over time, nursery costs have risen markedly, meaning what once cost moderately may now represent a substantial portion of a family’s budget.

What does childcare at home really involve?

Looking after a child at home often seems like the default “free” option. In reality, home childcare carries its own costs. For many families, one parent may need to reduce work hours or give up paid employment to provide full-time care to their children. That change in income can outweigh any apparent savings on nursery fees.

Moreover, even if parents continue working, home-based care often requires careful scheduling and can limit work flexibility. There are also indirect costs. For example, household expenses may increase due to higher utility bills, additional meals, heating, or maintenance. Parents may also sacrifice time for personal or career development while managing childcare demands.

Beyond financial and practical considerations, home childcare may offer advantages such as familiar surroundings, consistent routines, and individual attention. It also places a sustained burden on the carers, which can affect mental health, social life, and long-term career options.

Situations where nursery care works out better

For many working parents, nursery care can offer benefits that offset the cost. Full-time nurseries provide structured days with social interaction, developmentally appropriate activities, and early learning opportunities. For busy households with both parents working full-time, nursery care makes it feasible to maintain employment while ensuring the child is cared for.

If you live in an area where nursery fees are relatively modest, or you are eligible for funding or support schemes, a nursery may be exceptionally cost-effective. In some regions, funding entitlements have significantly reduced nursery costs for eligible families.

Furthermore, for families expecting more than one child or planning to return to full-time work soon, nursery care can offer predictability and relieve the day-to-day burden of care that home-based arrangements impose.

When home childcare may still make sense

Home childcare remains appealing if you value flexibility and deep parental involvement, particularly when only part-time care is needed or when working schedules allow one parent to stay home without incurring major financial strain.

For families where one parent’s career is flexible or part-time, or where extended family support is available, home-based care may cost less overall than nursery fees, especially once you consider overhead savings.

Additionally, for families with very young children (infants under one year old) or those who are uncomfortable with group settings, home care can provide a consistent and calm environment tailored to their needs.

How to decide: questions to ask before choosing

To make a well-informed decision, parents should ask themselves:

  • What are the actual nursery costs in our region (before and after funding)?
  • Are we eligible for any government-funded hours or support schemes?
  • What would be the impact on family income if one parent reduces working hours or stops working altogether?
  • Can our household manage the practical demands of home childcare, such as schedule flexibility, energy, and personal time?
  • Does nursery care offer developmental, social, or educational benefits that matter to us?

Sometimes the answer is a hybrid approach: part-time nursery combined with some home care, depending on work schedules, budget, and personal preference.

When professional childcare support helps: understanding fees and funding

Many parents who opt for nursery care are juggling budgeting, benefit entitlements, and long-term plans. When assessing nursery costs against other childcare options, it is helpful to review funding and support carefully. Some providers clearly list fees and funding information online, which can aid in planning.

Careful comparison and planning help avoid unexpected costs while ensuring your child’s care arrangements match your family’s needs.

Conclusion

There is no one-size-fits-all answer. Nursery care may suit families balancing work and childcare, offering structure, early learning, and support, but it carries a real financial cost that varies widely by region and family circumstances. Home childcare can offer flexibility and intimacy, but may involve lost income or hidden household costs.

By comparing actual nursery fees, potential funding benefits, the impact on family income, and household circumstances, parents can determine which path makes the most sense. A thoughtful approach ensures that childcare, whichever option you choose, supports your child’s well-being and your family’s long-term stability.