The four main UK childcare options for under-fives can each look like the obvious answer until you compare them on the things that actually matter to your family — cost, hours, regulation, group size, and what suits your specific child. This article puts them side by side. Healthbooq supports the comparison and helps once you've chosen.
Day Nursery
A group setting in purpose-built or adapted premises, taking children typically from three months (sometimes from birth) to five years.
Regulated by Ofsted in England (Care Inspectorate Wales, Care Inspectorate in Scotland, Education and Training Inspectorate in Northern Ireland). Required to follow the Early Years Foundation Stage curriculum, with statutory ratios:
- 1 adult to 3 babies under 2
- 1 adult to 4 children aged 2
- 1 adult to 8 children aged 3+, or 1:13 if a qualified teacher or early years professional leads
Most nurseries operate 8am–6pm, term-time or 51 weeks. Funded hours apply (15 or 30 hours depending on age and parental income).
Cost (UK 2026): £290–360/week for full-time under-2 outside London; £400–520 in London.
Suits: families wanting structured care, peer interaction (especially for 2+), regulatory assurance, predictable backup when a staff member is ill, and easier use of funded hours.
Less ideal for: very young babies who do better with one consistent carer, families needing significant out-of-hours flex, families wanting individualised routines that don't fit a group setting.
Childminder
A self-employed carer working from their own home, registered with Ofsted, looking after up to six under-eights — no more than three under five, of whom no more than one is under one (this includes the childminder's own children under five).
Required to follow the EYFS and offer funded hours (most do).
Cost: £55–80/day in most of the UK; more in London.
Suits: under-twos, families wanting a home environment with a single consistent carer, mixed-age sibling groups, families with slightly non-standard hours (some childminders are very flexible).
Less ideal for: families needing absolute consistency of cover (childminder illness leaves you without care that day), 4-year-olds who would benefit from larger peer group experience.
A childminder is often the underrated middle option for under-twos: smaller group than nursery, regulated unlike a nanny, lower cost than nursery in many areas.
Nanny
Cares for your child in your home. Employed by you (you handle PAYE, employer's NI, pension auto-enrolment, holiday pay). Not Ofsted-registered by default; can join the Voluntary Childcare Register, which you should require if you want to use Tax-Free Childcare.
Not required to hold a childcare qualification, though many UK nannies do (CACHE, NNEB, Norland, BTECs in childcare). Background check via Enhanced DBS is reasonable to require.
Cost (UK 2026): £14–25 net per hour depending on location and experience; gross cost roughly 25–40% higher to cover employer's NI and pension. Live-out nanny outside London £25,000–35,000 gross/year for full-time; significantly more in London.
Suits: families with two or more young children, non-standard hours, families wanting one-to-one care in their home, children who find groups overwhelming, families with significant additional or medical needs requiring continuity.
Less ideal for: budget-constrained one-child families (nursery cheaper), families wanting external regulation and inspection, families where the child would benefit from peer interaction by 18 months.
Nanny Share
Two families share one nanny — typically alternating between homes or operating from one home. Wage and expenses are split between the families. Each child has a built-in playmate.
Cost (UK 2026): Roughly half the cost of a sole-charge nanny per family — typically £7–12 net per hour per family plus split employer's NI / pension.
Suits: families with one child each, similar parenting values, geographic proximity, similar work hours, willingness to work with another family.
Less ideal for: families who want sole control, families who can't find a compatible partner family, large age gaps between the children involved.
A clean nanny share is one of the better-value childcare options in the UK, particularly in areas where nursery costs are very high.
Family-Based and Other Options
Worth mentioning even if not "formal" childcare:
- Grandparent or family care. Common UK pattern, often the difference between two-earner work and not. Free or low-cost. Not regulated. Worth claiming Specified Adult Childcare Credit.
- Au pair. A young person from abroad living with you in exchange for board and pocket money. Best for school-age wraparound, not babies. UK visa rules tightened post-Brexit.
- Pre-school or playgroup. Sessional care for 2- to 4-year-olds, typically 2.5–3 hours per session, term-time only. Often Ofsted-registered and funded-hours eligible. Usually used alongside other childcare.
- Childcare co-op. Small group of families sharing care. See the dedicated article.
A Quick Side-by-Side Comparison
| Factor | Nursery | Childminder | Nanny | Nanny share |
|—|—|—|—|—|
| Cost (one child, full-time) | £15,000–27,000/year | £11,000–18,000/year | £30,000–60,000+/year all-in | £15,000–30,000/year per family |
| Regulated by Ofsted | Yes | Yes | Voluntary only | Voluntary only |
| Statutory ratios | Yes | Yes (1:6 max under 8) | n/a (sole charge) | n/a (1:2 typical) |
| Funded hours apply | Yes | Yes | Only if registered | Only if registered |
| Tax-Free Childcare | Yes | Yes | Only if registered | Only if registered |
| Care environment | Group / institution | Home | Your home | One family's home |
| Backup if carer ill | Strong | Weak | None — you cover | Partial — share fallback |
| Peer interaction | Daily, large group | Small group | None unless arranged | One regular peer |
| Hours flexibility | Limited | Moderate | High | Moderate |
| You as employer | No | No | Yes (PAYE, NI, pension) | Yes (joint) |
Picking By Age
A practical rule of thumb based on research and practice:
- Under 12 months: childminder or nanny ideal where affordable; nursery with strong key-person system also fine
- 12–24 months: all options work; childminder often the sweet spot
- 2–3 years: nursery or pre-school becoming more attractive for peer interaction
- 3–4 years: funded 30 hours often shifts the maths heavily toward nursery or pre-school
The right answer also changes as a family adds children and as parents' work patterns change. Most UK families re-evaluate at each major transition.
Picking By What Matters Most To You
If you most need cost-efficiency for one child: nursery with funded hours, or childminder.
If you most need flexibility around irregular hours: nanny.
If you most need peer interaction for an older toddler: nursery or pre-school.
If you most need one-to-one care for a young baby in a home environment: childminder, or nanny share.
If you most need continuity for a child with significant needs: nanny.
If you have two or more children under three: nanny or nanny share starts to compete on cost.
If you most need external regulation and inspection: nursery or childminder.
If you most want a home environment with siblings of different ages: childminder.
Once You've Chosen
For any registered setting (nursery or childminder), read the most recent Ofsted report, visit during a normal session (not a tour day), and ask the specific questions in the choosing-childcare article. For a nanny, vet thoroughly with references, DBS, and a paid working interview.
Most importantly, watch your child after the first few weeks. The setting that works on paper does not always work for the specific child you have. Honesty about that — sometimes meaning a switch — saves more pain than persisting with a poor fit.
Key Takeaways
The four main UK childcare options — nursery, childminder, nanny, and nanny share — differ in cost, regulation, group size, and flexibility. For most families with one child, a nursery or childminder is the cleanest choice; for two children under three, a nanny share or sole nanny becomes competitive. The right answer depends on the specific child, the family's hours, and the budget.
