Child Care Costs 2025/26
How to cover the cost of childcare whilst in study can be a big concern for many student parents.
Whilst there are various options available, not all are available to students, and many are based on household income and/or additional eligibility criteria.
It is essential to be aware of how childcare costs will be met prior to starting study, as unfortunately we do continue to see student parents who believe that all child costs will be met, only to find out they do not qualify.
The following is an overview of the various options available:
Student Finance England
Some students can expect to get help with childcare costs through a Student Finance England (SFE) Childcare Grant but, as this is means tested, not everyone is eligible.
SFE operate the Childcare Grant as follows:
- The Childcare Grant is worked out as an annual maximum amount (which is means tested) and this is paid to a third party - the Child Care Grant Payment Service (CCGPS).
- Childcare Providers will have to bill the CCGPS for the full amount either on a weekly basis or for multiple weeks at a time (i.e. once a month). We advise you check with your provider to ask how they will choose to do this. This bill is then presented to the student for approval.
- It will be split into 85% (subject to a weekly cap) which the CCGPS will pay out of your Childcare Grant and 15% (plus any amount above the weekly cap) that you will have to pay yourself.
- Any left-over money at the end of the year will be paid back to Student Finance England – not to the student or to the childcare provider.
Childcare Grant from SFE
You can get up to 85% of your childcare costs paid.
The amount you’ll get depends on:
- your household income
- the cost of your childcare
- the number of children who are dependent on you
Details regarding Childcare Grants can be accessed at: https://www.gov.uk/childcare-grant/what-youll-get
2025/26 academic year
The maximum you can get is:
- up to £199.62 a week for 1 child
- up to £342.24 a week for 2 or more children
If your gross household income exceeds a certain threshold, it is unlikely you will be eligible for any SFE Childcare Grants so you will need to look at other ways to fund this.
A tapered reduction will be applied to all household income above the lower income threshold, meaning you may get some childcare grant, but not the full amount.
You can see more about this in the following table:
|
|
Childcare Grant (1 child)*
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Childcare Grant (2+ children)**
|
|
Maximum entitlement
|
£10,380.24 (52 weeks)
|
£17,796.48
(52 week rate)
|
|
Minimum payable
|
£0.01
|
£0.01
|
|
Lower income threshold for maximum grant
|
£9,727
|
£11,118
|
|
Upper income threshold for minimum grant
|
£20,107.23
|
£28,914.47
|
|
Grant reduction amount (loss of grant per £1 of income after deduction of lower threshold)
|
£1.00
|
£1.00
|
If you are funded by a different funding body (i.e. SFW, SAAS, SFNI) please check their childcare costs guidance.
Childcare Element of Universal Credit
If you are in receipt of Universal Credit (UC), then you may be able to get up to 85% of eligible childcare costs. There is an upper limit of how much you can claim this is:
For one child = £1031.88 per assessment period.
For two or more children = £1768.94 per assessment period.
The criteria for student parents to claim Childcare costs through UC is somewhat strict, and the majority of students will not be eligible.
However, there are exceptions, which you can read about at: https://www.gov.uk/guidance/universal-credit-childcare-costs#who-is-eligible-for-universal-credit-childcare-costs
Tax Free Childcare (TFC)
You may be able get up to £500 every 3 months (up to £2,000 a year) for each of your children to help with the costs of childcare. This goes up to £1,000 every 3 months (up to £4,000 a year) if a child has a disability.
Again, the eligibility criteria are strict, including criteria related to you, your partner (if you have one) your child/children, your income and your immigration status.
You can read more about the eligibility criteria at: https://www.gov.uk/tax-free-childcare
It is worth highlighting that in order to claim you, and your partner if you have one, will normally be expected to be working and earning the equivalent of 16 hours per week at national minimum wage for the next three months.
There are exceptions to this, often related to claiming disability related benefits, so it will be essential to read the guidance thoroughly.
If you meet the eligibility criteria, you’ll need to set up an online childcare account for your child. The Government will contribute £2 for every £8 you pay into the scheme, subject to a maximum of £2000 or £4000 Government Contribution per child, per year.
Details can be found here: https://www.gov.uk/get-tax-free-childcare
Free Childcare places for 2 year olds
Your 2-year-old may get up to 570 hours (15 hours per week) of free early education and childcare if you live in England and receive one of the benefits as listed in the following eligibility criteria:
https://www.childcarechoices.gov.uk/15-and-30-hours-childcare-support/additional-support/eligibility
A child can also get free early education and childcare if any of the following apply:
- are looked after by a local authority
- have an education, health and care (EHC) plan
- get Disability Living Allowance
- have left care under an adoption order, special guardianship order or a child arrangements order
Contact your childcare provider or local council to find out more.
15 hours of free funding for all 3- and 4-year-olds – universal funding.
All 3 to 4-year-old children in England can get 570 free hours per year. It’s usually taken as 15 hours a week for 38 weeks of the year, but you can choose to take fewer hours over more weeks if your childcare provider can offer this:
You can get it from the term after your child’s 3rd birthday, starting form the 1st of January, 1st of April or 1st of September.
You will need to contact your Ofsted registered childcare provider to find out more and advise them that you would like to use these hours.
30 hours childcare for eligible working parents in England
If you live and work in England you may be entitled to 30 hours funded childcare support from the term after your child turns 9 months old, until they start school.
Again, the criteria are strict and amongst other things, would ordinarily require that you (and your partner if you have one) are working and will be expected to earn the equivalent of 16 hours per week at national minimum wage; or are in receipt of certain benefits.
You can read the full eligibility criteria at: https://www.gov.uk/free-childcare-if-working/check-youre-eligible
If you are not eligible for the working parent offer you will still receive the 15-hour universal funding.
Your Earnings
As the criteria in places mentions earning the equivalent of 16 hours a week at NMW, you can find more guidance on specific amounts in the following:
- £2,539 before tax if you’re aged 21 or over (equivalent to £195 per week)
- £2,080 before tax if you’re aged 18 to 20 (equivalent to £160 per week)
- £1,570 before tax if you’re under 18 or an apprentice (equivalent to £120 per week)
|
|
Yearly
|
3 months
|
Weekly
|
|
21 and over
|
£10,158
|
£2,539
|
£195
|
|
18 to 20
|
£8,320
|
£2,080
|
£160
|
|
Under 18 or an apprentice
|
£6,281
|
£1,570
|
£120
|
Finally, as much of the guidance refers to approved childcare providers, if unsure, you can check what this means at: https://www.gov.uk/help-with-childcare-costs
Should you need it, you can find a great deal of further guidance and an easy-to-use option finder at: https://www.childcarechoices.gov.uk/
As always, please contact us at https://www.upsu.com/advice/enquiry/ if you need further support.
Last updated May 2025