OneOrBoth

    Family Work & Childcare Affordability Calculator

    Make informed decisions about work, childcare, and your family's financial future. Compare scenarios side-by-side to see what works best for you.

    Universal Credit Childcare Calculator

    If you get Universal Credit and work, you can claim back up to 85% of childcare costs. Enter your monthly bill and number of children to see the most Universal Credit can pay, and how it compares with Tax-Free Childcare.

    Your numbers

    All children combined

    Result

    Universal Credit childcare element per month

    £935

    You pay per month£165
    Monthly cap for your family£1,071
    Tax-Free Childcare instead (per month)£167

    Universal Credit pays more than Tax-Free Childcare on these numbers.

    This is the childcare element only. Your total award also depends on earnings, which reduce Universal Credit by 55p for each £1 over any work allowance.

    You usually pay the provider first and report the cost in your Universal Credit account to be paid back.

    Is going back to work worth it? Run the full comparison

    How the childcare element works

    Universal Credit covers up to 85% of what you pay for registered childcare, up to a monthly cap: £1,071.09 for one child and £1,836.16 for two or more. You or your partner must be working.

    Universal Credit vs Tax-Free Childcare

    You can only use one. Universal Credit covers more of the bill (85% vs 20%), but your earnings reduce the overall award. The calculator compares the childcare help from each.

    Upfront costs

    You can get help with upfront costs like deposits and the first month's fees, rather than waiting to be paid back. Ask your work coach.

    Frequently asked questions

    How much childcare does Universal Credit pay?

    Up to 85% of your registered childcare costs, capped at £1,071.09 a month for one child or £1,836.16 for two or more children.

    Is Universal Credit or Tax-Free Childcare better?

    Universal Credit usually pays more towards childcare (85% vs 20%), but your earnings reduce the overall award. Use both calculators to compare; you cannot claim both.

    Do I need to be working to get childcare help on Universal Credit?

    Yes. You, or both you and your partner if you live together, must be in paid work, or have a job offer.

    Next steps

    Sources

    Results are estimates for planning. Rates change each tax year, so check the official source before you rely on them.