Economic Fairness - Childcare Costs

Access to high quality affordable childcare is vital for London. Childcare is a substantial cost for families and is a factor in influencing the decision on whether to start a family. It supports the development of children and enables parents to work, impacting the health of the economy for all Londoners. Therefore, childcare costs are of broader interest to everybody – politicians and public alike.

We use data from the Coram Childcare Survey to look at the costs of childcare in London and across the country. It includes data for London, England and Great Britain for 2016-2025, including the costs of part-time (25 hours per week) and full-time (50 hours per week) nurseries and childminders for children aged under two and two years old, and the cost of after school care (after school clubs and childminder pickup) for children aged 5-11.

In 2024, 15 hours of free childcare for 38 weeks a year was introduced for working parents of children aged nine months to two years in England who meet certain eligibility criteria (based on hours worked and an income threshold; see 2025 Coram Childcare Survey for further details). This change in entitlements is reflected in the costs of childcare reported in the 2025 Coram Childcare Survey. The working parent entitlement will be further expanded to 30 hours from September 2025 for working parents of children from nine months to four years. These changes mean that there are now substantial differences in the cost of childcare between families who are eligible for the new entitlement, and those who are not eligible, as they are not in work or do not earn enough.

This page includes summary figures of the cost of childcare for children under two and for after school childcare for children aged 5-11.

The average cost of part-time (25 hours) childcare (nurseries and childminders) in London for those eligible for the working parent entitlement has reduced by 56% from 2024 (£192) to 2025 (£84). However, there has been a 10% increase in costs for those who are not eligible for free childcare (2024: £192; 2025: £210). The combined effect has meant that the costs of part-time childcare are 2.5 times higher for those who are not eligible than those are who are eligible. These costs are also 29% higher in London than England as a whole, and 8% higher in Inner London than Outer London.

In 2025, the average weekly cost of after school childcare for children aged 5-11 in London was £61 for an after school club and £127 for a childminder. Childminder costs were higher in Inner London compared to Outer London (17% higher), whereas the opposite was true for after school clubs, in that costs were higher in Outer London than Inner London (20% higher). Compared to England, the average cost in London is considerably higher (56%) for childminder pickup, but for after school clubs the cost is slightly higher in England (8%).