Nanny share or nursery: what each really costs

Updated 14 October 2026

The short answer: once your child's funded hours start, nursery is usually the cheapest way to cover a full working week. A nanny share costs more, but roughly half what a nanny of your own does, and it can win on hours, flexibility and timing. Here's the detail, so you can decide for your family.

Weekly costs side by side

Full-time care for one child under two in outer London, which includes Chiswick, in 2026.

Full-time means 50 hours a week; nursery and childminder figures are after the 30 funded hours, except the "no funding yet" row (25 hours at full price). Nursery and childminder figures are outer London averages from the Coram Childcare Survey 2026, before Tax-Free Childcare. Nanny figures are Pairfold's worked example, based on Nannytax's 2025/26 outer London average of £21.73 an hour and 2026/27 employer rates.

What the numbers don't show

Funded hours have conditions

Working parents in England can get up to 30 funded hours a week from when their child is 9 months old, usually for 38 weeks a year, starting from the term after you become eligible. Before then, and in weeks the funding doesn't cover, you pay the nursery's full price. Funded hours can't be used for a nanny.

Tax-Free Childcare works for both

The government adds £2 for every £8 you pay in, up to £2,000 per child a year. You can use it for a nursery, a childminder, or a nanny who's registered with Ofsted. In the share example, that could take a family's cost from about £35,900 to about £33,900 a year.

Hours and flexibility

Nurseries open fixed hours and charge for late pick-ups. A nanny works the hours the two families agree, which matters if you commute, work shifts or have a long day in town.

Ratios and setting

Nurseries in England must have at least one adult for every three children under two. In a share, one nanny looks after two or three children, at home, with outings to parks and classes.

Illness and waiting lists

Nurseries ask parents to keep ill children at home, which can mean lost work days. And places can be hard to get: in one national survey by the nursery search service Nuuri, 79% of parents had been put on a waiting list.

When each option makes sense

Nursery or childminder is likely better if

• Your child is old enough for funded hours and you're eligible.
• Your working hours fit the opening times.
• Keeping costs as low as possible is the main priority.

A nanny share is worth a look if

• You're going back to work before funded hours start, or you're stuck on waiting lists.
• You need longer or less regular hours than a nursery offers.
• You'd prefer care at home with one carer, and you'd otherwise consider a nanny of your own.

Or mix the two

Some families share a nanny for two or three days and use funded nursery hours for the rest. A three-day share of 30 hours a week costs each family about £410 a week in the same example.

Sources

• Coram Family and Childcare: Childcare Survey 2026 (outer London nursery and childminder costs)
• Nannytax: 2026 nanny salary guide
• Best Start in Life: how 30 hours childcare works
• Hounslow Council: free childcare expands to eligible families
• Cambridgeshire County Council: childcare entitlement for working parents (38 weeks a year, or stretched)
• HFL Education: staff to child ratios in early years (1:3 for under-twos)
• Nannytax: Tax-Free Childcare for nannies
• Insider: Nuuri parent survey on nursery waiting lists