How childcare costs are changing across the UK in 2025

Childcare costs are undergoing a significant shift in the UK in 2025. In England, newly expanded funded hours for working parents have driven substantial cost reductions for parents of children under three. Simultaneously, in Scotland and Wales — where the roll-out of funded hours is less advanced — childcare costs are rising for the same age group. These changes carry major implications for affordability, employment decisions, and regional inequality.

Dramatic cost falls in England for youngest children

According to the 24th annual Coram Family & Childcare survey, working parents in England with a child under two now pay on average £70.51 per week for a part-time nursery place — a decrease of 56% compared with 2024. A full-time place for the same age group now costs around £238.95 per week, down 22%. :contentReference[oaicite:1]{index=1} The survey also found that families not eligible for the new entitlements pay around £105 more per week than eligible families for similar care. :contentReference[oaicite:2]{index=2}

Rising costs elsewhere in the UK

In contrast, the same Coram survey reports that in Scotland the average part-time nursery cost for a child under two rose to £122.38 per week (+7% year-on-year), and in Wales it rose to £155.04 per week (+10%). :contentReference[oaicite:3]{index=3} Additionally, for three- and four-year-olds across Great Britain, childcare costs increased by almost 5% compared to 2024. :contentReference[oaicite:4]{index=4}

What support is changing for families

From April 2025, the childcare costs element of Universal Credit is worth up to £1,032 a month for one child, and £1,769 a month for two or more children, for eligible claimants. :contentReference[oaicite:6]{index=6} The government’s early years reform announced in February 2025 also clarified that additional charges by providers (for example nappies, meals) must be transparent and cannot be a condition of accessing funded hours. :contentReference[oaicite:7]{index=7}

Why these diverging trends matter

• Affordability and employment: Lower childcare costs in England may enable more working parents (especially women) to increase hours or return to employment, while higher costs in Scotland and Wales may constrain these choices.
• Regional inequality: The disparity between England and other UK nations risks widening regional skill and labour market gaps.
• Eligibility and access: The huge cost differences for families not eligible for funded hours in England highlight the risk of an affordability cliff for lower-income or non-working parents. :contentReference[oaicite:8]{index=8}

What to watch going forward

• Whether the entitlement for 30 hours funded childcare from nine months old (scheduled for September 2025) is delivered smoothly and whether it drives further cost reductions. :contentReference[oaicite:9]{index=9}
• How providers respond to funding pressures and whether rises in staffing, energy and regulatory costs push fees back up.
• Whether Scotland and Wales accelerate their funded childcare offers to close the cost gap.

The bottom line

For families in England with eligible children under three, 2025 may bring a meaningful relief in childcare costs. However, for those in Scotland, Wales, or families not eligible for funded hours, affordability pressures persist. The shifts highlight how policy design, eligibility criteria and regional implementation drive real differences in household finances.

References:

• Coram Family & Childcare – Childcare Survey 2025 :contentReference[oaicite:10]{index=10}
• UK Parliament – Paying for Childcare in England Briefing 2025 :contentReference[oaicite:11]{index=11}
• Government – Early years reform protections 2025 :contentReference[oaicite:12]{index=12}