Nursery and Day Care Costs in London: What Parents Can Expect in 2026
Last updated: September 2026
London has some of the highest childcare costs in the UK, and prices vary widely between nurseries, even on the same street. This guide explains what drives the cost, what’s usually included, and how funded hours and Tax-Free Childcare can bring your bill down. For our own approach, see fees and funding at our Fulham nursery.
What does nursery cost in London?
The Coram Family and Childcare Survey 2026 reported that, after the funded entitlement for three- and four-year-olds, families in Inner London paid on average about £87 a week for 25 hours and £179 a week for 50 hours of nursery. Costs before funding, and for children under three, are much higher. Use these figures as a broad guide only: each nursery sets its own fees.
Why prices vary so much
- Your child’s age. Younger children need more staff (one adult for every three under-twos, and one for every five two-year-olds), so care costs more.
- Hours and sessions. Full days (often 8am–6pm) cost more than mornings or afternoons, but the hourly rate can be lower.
- Location and premises. Rents in central and west London are high.
- Size and staffing. Staff experience, qualifications and the number of adults per room all affect cost.
- What’s included. Meals, nappies, trips and extras can be in the fee or charged separately.
What fees usually include
Ask every nursery for a written breakdown. Fees often include:
- breakfast, lunch, tea and snacks;
- nappies, wipes and suncream;
- trips, activities and resources;
- progress records and parent meetings.
Some nurseries charge separately for meals, consumables or optional activities, especially during funded hours.
How funding reduces the cost
|
Your child |
Funding available |
|---|---|
|
9 months to 2 |
Up to 30 hours a week for eligible working parents |
|
2 years |
15 hours (families receiving support) or up to 30 hours (working parents) |
|
3 and 4 years |
15 hours for every child; up to 30 for working parents |
Funded hours are free, but they cover 38 weeks a year. If your nursery is open all year, ask whether you can stretch them for a steadier bill. On top, Tax-Free Childcare adds £2 for every £8 you pay, up to £2,000 a year per child. Tax-Free Childcare plus 30 hours →
How to estimate your monthly bill
- Ask the nursery for its fee sheet for your child’s age and the days you need.
- Subtract your funded hours (stretched over the year if the nursery allows).
- Add any charges for meals or extras during funded hours.
- Take off the Tax-Free Childcare top-up (20% of what you pay, up to the cap).
- Divide by 12 if your nursery bills monthly over the year.
A good nursery will happily do this calculation with you.
Is a nursery cheaper than a nanny or childminder?
Usually a nursery or childminder costs less than a nanny, but a nanny may work out cheaper for families with several young children. Childminders are often a little cheaper than nurseries. Compare all four options →
Questions to ask about fees
- What is included in the daily or monthly fee?
- What do you charge during funded hours?
- Can funded hours be stretched across the year?
- Do you accept Tax-Free Childcare?
- What’s the deposit or registration fee, and is it refundable?
- How much notice do I need to give, and are there fees for holidays or closures?
- How often do fees go up, and when?
Finding value, not just a low price
The cheapest place isn’t always the best value. Look at the Ofsted report, staff turnover, how long your child would spend outside, and what’s included. A slightly higher fee that includes meals and nappies may cost you less overall.
Closing: Looking for a small nursery in Fulham? Request our fee sheet and we’ll work out your monthly cost after funding.
