Inputs
Your gross salary
£
Your pension sacrifice
Adjusted income: £90,250
%
Single parent
Partner's gross salary
£
Partner's pension sacrifice
Adjusted income: £42,750
%
Number of children
Child age
0-5 (pre-school)
yrs
Weekly childcare hours (per child)
hrs
Hourly childcare cost
UK average: £6-8/hr
£
Advanced settings
▾
Childcare weeks per year
38 = term-time, 52 = full year
wks
Results
Share your result
Under the cliff edge
You're claiming £12,160/year in entitlements
Net childcare cost
£3,040/yr
Monthly cost
£253
💰Gross childcare cost
£15,200
1 child × 40hrs × £10/hr — before any help
📊Net annual cost
£3,040
£253/month after all deductions
🎓Free hours value
£11,400
Government-funded hours
🏛️Tax-Free Childcare
£760
20% top-up, max £2k/child/yr
Take-home pay after childcare costs
Take-home after childcare
£100k cliff edge
Monthly cost by child's age
Guide
UK Childcare Cost Questions
What free childcare hours am I entitled to?
All families: 3-4 year olds get 15 hours/week free (universal, no income test). Working parents earning under £100k: 30 hours/week for 3-4 year olds, and 30 hours/week for children aged 9 months to 2 years (expanded from 15 hours in September 2025). Each parent must individually earn under £100,000 adjusted net income (gross salary minus pension contributions) and at least £10,158/year (16 hours/week at the April 2025 minimum wage of £12.21/hr). Single parents only need to meet the threshold themselves.
What is Tax-Free Childcare?
The government tops up your childcare payments by 20% — for every £8 you pay, they add £2, up to £2,000 per child per year (£500/quarter). Both parents must earn under £100,000 and at least £8,670/year. It covers children up to age 11 (16 if disabled).
Why is £100k such a cliff edge?
When either parent's adjusted net income reaches £100,000, you instantly lose Tax-Free Childcare (up to £2,000/child) AND extended free hours (worth £5,000-7,000/child). Plus your personal allowance starts being tapered away. The combined effect means earning £100,001 can leave you thousands worse off than £99,999.
How can salary sacrifice help?
Salary sacrifice pension contributions reduce your adjusted net income before the £100k test. If you earn £105,000, sacrificing £5,001 into your pension brings you to £99,999 — restoring all childcare entitlements AND the extra pension contributions grow tax-free. It's often the single most valuable financial optimisation for parents near the threshold.
What about childcare vouchers?
The Childcare Voucher scheme closed to new entrants in October 2018. If you're still receiving vouchers from before then, you can continue until your child turns 15 (or you change employer). New parents should use Tax-Free Childcare instead.
When do free hours start?
Free hours start the term after your child reaches the qualifying age. The three entry points are: 1 January (for children turning the age between 1 Sept – 31 Dec), 1 April (1 Jan – 31 Mar), and 1 September (1 Apr – 31 Aug).
How We Calculate
- Universal 15 hours — all 3-4 year olds, no income test
- 30 hours free (under 3s) — working parents with children aged 9 months to 2 years, adjusted income under £100k (expanded from 15 to 30 hours from September 2025)
- 30 hours free — working parents with 3-4 year olds earning under £100k (replaces and extends the universal 15)
- All working-parent free hours entitlements are lost
- Tax-Free Childcare eligibility is lost
- Personal allowance (£12,570) tapers away at £1 lost for every £2 earned over £100k, creating an effective 60% marginal tax rate
Uses 2025/26 HMRC tax bands and NI rates. This is an illustrative model, not financial advice.
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