The Most Affordable UK Cities for Childcare
13 February 2024
7 min read
There’s been a 15% drop in the number of childcare providers in the UK since 2018, according to recent research. And, with the UK being the third most expensive place for childcare among members of the OECD, sourcing and paying for childcare is becoming increasingly more difficult. Yet, childcare is a necessity for most parents.
To help us to understand the impact it’s having on parents, we’ve discovered the most affordable and the most expensive cities for childcare in the UK.
We looked at the average cost of full time childcare in each city, the average number of hours of work needed to pay this fee, and the average net salary in each city to find out what percentage of parents’ monthly income goes towards childcare. We analysed this data to help parents make more informed decisions when it comes to funding childcare.
To help parents out in the best way we can, we've also gathered some expert tips to help current and soon-to-be parents manage rising childcare costs and alleviate some of the financial stress.
The most affordable cities for childcare in the UK
Liverpool ranks as the UK city with the most affordable childcare, with an average monthly cost of £800 — the lowest figure on the list. On average, men in the city would need to work 53 hours per month in order to pay the childcare cost, and women would have to work 57 hours for the same amount.
The average total net income for both a man and a woman in Liverpool is £50,351. That’s 19.1% of an average couple’s monthly net income to pay for childcare per month. This ranks as the second lowest percentage on the list, meaning parents here are paying out less each month for childcare expenses than most other cities in the UK.
Coming in second place is Bradford. Though the childcare costs are the same as Liverpool at £800 per month, the average salary in Bradford is £46,648 — that’s £3,703 less than Liverpool’s average salary. Despite being slightly more challenging to afford, Bradford proves to be one of the most affordable cities in the country for childcare, thanks to its lower monthly cost.
Stoke-on-Trent is third on the list. The cost for childcare here is slightly more expensive than Bradford, at £839 per month. The percentage of a man and a woman’s joint net income that is put towards childcare is 22.6%, which is a little more than in Bradford (20.6%), making it slightly less affordable.
The most expensive UK cities for childcare
London is ranked as the most expensive city in the UK for childcare, with an average monthly cost of £1,781. That's £981 more than Liverpool, our most affordable city on the list — a massive 123% difference in cost.
Men in the city would have to work 77 hours to pay for monthly childcare in England’s capital, whereas women would need to work 95 hours to cover the same amount.
The average total net annual income for both a man and a woman in London is £74,184. That means it takes 28.8% of total net monthly income to pay for childcare per month.
Derby is the second most expensive city in the UK for childcare. It costs less per month here than in London, but it’s still a significant amount at £1,350. The number of hours needed to work in order to pay this fee is also slightly less (for men, 75 hours and for women, 91 hours).
In third place is Bristol, where childcare costs add up to £1,333 per month. Although that’s a slightly lower figure, the average net income in Bristol is also lower, at £53,817, meaning parents again need to spend a higher percentage of their monthly salary on covering childcare costs (29.7%).
Cities in the UK with the highest percentage of salary spent on childcare
Parents in Southend-on-Sea are spending 31.2% of their monthly dual income on childcare, which is the highest percentage on the list.
Not every parent works with a dual income, and women alone would need to pay 74.9% of their monthly salary to pay for childcare here. For a single parent, that’s a staggering amount — a contributing factor as to why many parents are choosing to stay at home rather than work to avoid childcare costs.
Recent research from debt counselling charity StepChange highlights that women are four times more likely to be single parents than men, bearing a higher burden of childcare costs while also having a lower income on average. This means rising childcare costs have a disproportionately negative impact on women.
In fact, the research also reveals that 74% of women who are single parents were receiving Universal Credit in 2023, compared to only 33% of men in similar circumstances.
According to additional research by equal rights charity, Fawcett, around a quarter of a million mothers with young children have left their jobs due to childcare pressures. Considering these statistics, it’s clear to see why.
Plymouth is a close second, with 31.1% of two parents' monthly salary going into childcare. That’s a massive amount to spend on top of other essential costs like bills, food and paying a mortgage. For parents without dual incomes, men would need to use 54.1% of their monthly income on childcare, and women would need to sacrifice 73.4% per month.
Another city with a high percentage is Luton, where mothers on a single income would need to spend 78.6% of their monthly wages on childcare, working around 101 hours overall to meet the cost. Fathers alone would need to spend 50.8% of their wages on monthly childcare, working 79 hours overall.
Guidance on managing childcare costs
Raising a child comes with a fair share of financial challenges, particularly when it comes to the increasing costs of childcare. To help ease some stress, we’ve compiled some tips to help manage your finances when it comes to rising childcare costs.
Seeking support and advice
We’re on hand to support you with everyday money management. We understand that personal circumstances can change, and budgeting can be a challenge. We also know how essential childcare can be for many parents, and how difficult this can be to manage amongst other necessary costs.
Fortunately, there are many services you can turn to for help. Charities like StepChange offer free advice and support with things like budgeting and dealing with debt.
You can also visit our money management hub for online support and information on how to manage your day-to-day spending, or contact us for more advice and support over the phone.
Getting help from childcare schemes
To help manage childcare costs, there are government schemes being introduced in the near future. From September 2024, 15 hours of free childcare will be extended to all children from the age of 9 months.
From September 2025, working parents of children under the age of five will be entitled to 30 hours of free childcare a week.
Though there is no quick fix, these schemes are available to provide help, support and alleviate some of the financial strain.
Managing your money
Regular financial check-ins can be beneficial when trying to keep your money on track. Using the mobile app, online banking or automated telephone banking, you can easily keep track of your outgoings. Using an online budgeting tool is another great way to keep track of bills and daily spending, helping you save money in the long run.
Another useful method to adopt is the 50/30/20 rule. This means you spend 50% of your income on ‘needs’, 30% on ‘wants’, and 20% on savings.
In general, this is a great way to manage your money, but remember that each circumstance is different and you should adjust your budgeting accordingly.
Methodology and sources
To find out the cost of childcare across the UK, The Co-operative Bank created a seed list of cities, based on the 30 most populated cities in the UK. The most and least affordable cities for childcare in the UK was calculated using:
To calculate average yearly take home pay, we've used an online calculator inputting the gross annual salary, the standard 1257L tax code and 5% pension contribution.
We've calculated average hourly pay by dividing the calculated net take home pay by 52 times the average number of hours worked in a week.
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