Childcare Costs in Wales: What Parents Need to Know in 2025

Childcare is one of the biggest financial commitments a family will make. In Wales, the picture is more complicated than many parents realise — and, right now, more expensive than in England. Whether you're returning to work after parental leave or planning ahead, understanding what you'll actually pay — and how to reduce it — is essential.

This guide breaks down the real cost of childcare across Wales, explains the government support available, and shows you how to find the best value provider for your family. Use our free childcare cost calculator to get a personalised estimate based on your child's age and your local area.

What Does Childcare Actually Cost in Wales?

The short answer: it depends on your child's age, where you live, and the type of provider you choose. But here are the headline figures.

According to Coram Family and Childcare's 2025 Childcare Survey — the most comprehensive annual snapshot of UK childcare costs — a part-time nursery place for a child under two in Wales now costs an average of £155.04 per week, a 10% increase on 2024. That's notably higher than the equivalent cost in England (£70.51 per week for eligible working parents), largely because the expanded funded entitlements introduced in England from April 2024 haven't been replicated in Wales.

For full-time care (around 50 hours per week), the monthly costs in Wales broadly look like this:

Under 2s: Expect to pay in the region of £1,789/month for a full-time nursery place
2-year-olds: Approximately £1,599/month
3–4 year olds (without funded hours): Around £1,447/month — though if you qualify for the Childcare Offer for Wales (see below), your out-of-pocket cost will be significantly lower

On an hourly basis, nursery rates across Wales average around £5.73–£6.68 per hour, varying significantly by location (more on that below). Childminders tend to cost around 15–20% less per hour than nurseries.

Not sure what you'd pay? Use our childcare cost calculator to get a figure based on your postcode and your child's age.

How Costs Vary Across Wales

Where you live in Wales makes a meaningful difference to what you'll pay.

Cardiff is the most expensive area for childcare in Wales, with average hourly rates around £6.68/hour. This reflects the higher operating costs in the capital — city-centre rents, higher staff wages, and strong demand for places. Within Cardiff, there's a noticeable difference between city-centre settings and those in suburban areas like Llandaff, Rhiwbina, or Pontprennau, where rates can be 10–15% lower.

Newport sits in the middle of the Welsh picture at around £6.11/hour — still elevated compared to rural areas, which reflects its proximity to Bristol and the M4 corridor's relatively strong labour market.

Swansea is more affordable at approximately £5.73/hour on average, making it meaningfully cheaper than Cardiff for families who have flexibility on location.

Rural and valleys communities tend to be cheaper still, though availability of registered providers can be more limited.

When comparing providers, always ask for the all-in hourly rate — some nurseries quote a headline rate that excludes meals, nappies or activities. Search nurseries and childminders in your area on ChildcareHub to compare like-for-like costs in seconds.

What Drives the Cost of Childcare?

Childcare pricing isn't arbitrary. Several factors combine to produce the fee you're quoted.

Type of provider. Nurseries and childminders both offer high-quality registered care, but they operate very differently. Nurseries tend to have higher overheads — rent, multiple staff, dedicated premises — while childminders work from home with smaller groups of children. This typically makes childminders 15–20% cheaper per hour. For families with babies and toddlers, many childminders also offer a more home-like environment, which some children settle into more easily.

Staff qualifications. Settings where a higher proportion of staff hold Level 3 qualifications or above often charge more — and rightly so. Qualified staff aren't just a regulatory tick-box; the evidence consistently shows they have a stronger positive impact on child development. When comparing providers, look at the qualification levels on their Care Inspectorate Wales inspection report.

What's included. This is where costs can really diverge. Some nurseries include all meals, snacks, nappies, wipes and activities in their headline fee. Others charge for these separately, sometimes significantly — the Welsh Government now permits providers to charge up to £10.80 per day for food as part of the Childcare Offer. Always ask for a full written breakdown before comparing quotes.

Location within a city. A nursery in central Cardiff will typically pay more in rent and pay higher wages to attract staff than one five miles out. Those costs are passed on.

Size and sector. Larger private nursery chains often have efficiencies of scale but less flexibility on fees. Smaller independent settings and community nurseries (including many Welsh-medium Cylch Meithrin groups) sometimes offer lower rates, particularly outside city centres.

How to Reduce Your Childcare Costs

The good news: there is meaningful support available for Welsh families. The bad news: not everyone who's eligible actually claims it.

The Childcare Offer for Wales

This is the flagship Welsh Government support for eligible working parents. If you and your partner (if you have one) both work at least the equivalent of 16 hours per week at the National Minimum Wage, and neither earns more than £100,000 gross per year, you may be entitled to:

30 hours per week of combined funded nursery education and childcare for 3 and 4-year-olds
Available for 48 weeks of the year — including school holiday periods, which is more generous than the equivalent offer in England
The 30 hours is made up of a minimum of 10 hours nursery education plus up to 20 hours of funded childcare

This is a substantial benefit. Working parents of 3–4 year olds using a full-time place (50 hours/week) pay an average of £119.23 per week after their funded hours in Wales, according to Coram's 2025 survey. Without funded hours, the same place would cost considerably more.

Check your eligibility and apply via GOV.Wales.

Flying Start (for 2-year-olds)

The Flying Start scheme offers 12.5 hours of funded childcare per week for eligible 2-year-olds during term time (39 weeks per year). Eligibility is currently targeted at families in deprived areas, though the Welsh Government is expanding the scheme. Check with your local Family Information Service or council to find out if your area is covered.

Important: Wales has not yet matched the expanded entitlements introduced in England, where working parents of children from 9 months can now access 15–30 hours of funded care. This is why childcare costs for under-2s and 2-year-olds are rising faster in Wales. Keep an eye on Welsh Government announcements for any future changes.

Tax-Free Childcare

Tax-Free Childcare (TFC) is available UK-wide, including in Wales, and can be used alongside the Childcare Offer for any hours you pay for privately.

The scheme works like this: for every £8 you pay into your online childcare account, the government adds £2, up to a maximum top-up of £500 per quarter (£2,000 per year) per child. For a child with a disability, the maximum rises to £1,000 per quarter.

Eligibility mirrors the Childcare Offer: both parents must be working and earning between the equivalent of 16 hours at National Minimum Wage and £100,000 per year.

Despite being a genuinely useful benefit, take-up in Wales is lower than in England — just 30% of eligible Welsh families used TFC accounts in 2021/22, according to HMRC data cited in House of Commons research. If you're not already using it, it's worth setting up. Apply via GOV.UK.

Universal Credit Childcare Element

If you're on Universal Credit, you may be able to claim back up to 85% of eligible childcare costs, with a monthly cap of £1,014.63 for one child or £1,739.37 for two or more children. This applies even for hours not covered by funded entitlements.

Childminders as a Lower-Cost Alternative

If nursery costs are stretching your budget, registered childminders are worth considering. They're regulated by Care Inspectorate Wales, can deliver the Childcare Offer for Wales hours, and typically charge 15–20% less per hour than nurseries. Many parents find the smaller, more flexible setting suits younger children particularly well.

Sibling Discounts and Referral Schemes

Many nurseries offer a discount of 5–15% for a second child attending the same setting. Some also offer referral discounts if you recommend the nursery to another family. These aren't always advertised, so it's always worth asking.

What Should Be Included in Your Childcare Fee?

Before signing any contract, get a clear written breakdown of what's included and what isn't. The following are commonly included by some providers — but not all:

Meals and snacks — some settings provide all food; others charge separately (up to £10.80/day under the Childcare Offer rules)
Nappies and wipes — more common in under-2s rooms, but not universal
Formula milk — most settings ask parents to supply their own
Sunscreen, change of clothes — typically supplied by parents
Extra-curricular activities — swimming lessons, music sessions, trips — these are almost always charged on top, and the Welsh Government is clear that these cannot be made a condition of accessing funded hours

Key questions to ask any provider before you sign up:

What's included in the daily/weekly fee?
What will I be charged separately for?
Are meals included, and if so, what are they?
Is there a registration or deposit fee?
What is the notice period if I need to change my hours or leave?
Do you accept the Childcare Offer for Wales? Are there any top-up charges?

Finding Affordable Childcare in Wales

The best way to find good value childcare isn't to go with the first nursery you visit — it's to compare. Here's how to approach it:

Start broad, then narrow. Search registered providers in your area on ChildcareHub. You can filter by location, type of care (nursery, childminder, Cylch Meithrin), language of provision (English, Welsh or bilingual), age range, and whether they accept the Childcare Offer.

Check their Care Inspectorate Wales report. All registered providers in Wales are inspected by CIW. Reports are public and give you a picture of quality, staffing, and any areas of concern — it takes five minutes to read one, and it's worth it.

Contact multiple providers. Fees and availability change regularly. A setting that was full six months ago may have spaces now. Some providers will also negotiate on fees or offer flexible hours that reduce your overall cost.

Think about your commute. A nursery that's marginally cheaper but adds 40 minutes to your daily journey may not save you money once you factor in travel costs and your time.

Consider Welsh-medium care. Wales has a network of Welsh-medium Cylch Meithrin settings across the country. Many offer competitive rates and are eligible to deliver the Childcare Offer. Raising a bilingual child is a well-evidenced cognitive advantage — and at the pre-school stage, it happens naturally through play.

The Bottom Line

Childcare in Wales is expensive — and right now, costs are rising faster than in England, largely because the expanded funded entitlements introduced for under-3s in England haven't been extended to Wales. That gap is likely to widen further when England moves to 30 hours for working parents of children from 9 months in September 2025.

That said, there is real support available — particularly the Childcare Offer for Wales for 3–4 year olds and Tax-Free Childcare for any privately paid hours. The key is knowing what you're entitled to and shopping around for the best-value registered provider.

Use our childcare cost calculator to see what you'd pay based on your child's age and your postcode — and search providers near you to start comparing today.

Sources: Coram Family and Childcare, Childcare Survey 2025; Welsh Government, Childcare Offer for Wales; Welsh Government Written Statement on Childcare Offer hourly rate, December 2024; Working Families, Wales free childcare guidance; Bevan Foundation analysis, March 2025.