Childcare Costs in London vs Salary (2026)
Full-time infant care in London runs about £1,750 a month — £21,000 a year, or 44.7% of the median United Kingdom household income of £47,000. Here is what that means for the decision to go back to work.
The London numbers at a glance
| Figure | Monthly | Annual |
|---|---|---|
| Infant daycare (0–2), full time | £1,750 | £21,000 |
| Preschooler care (3–4), full time | £1,550 | £18,600 |
| Median 2-bedroom rent | £2,200 | £26,400 |
| Commute for the returning parent | £180 | £2,160 |
| Groceries, family of four | £700 | £8,400 |
| Median household income | £3,917 | £47,000 |
Estimates for 2026, rounded. Childcare: Coram Family and Childcare — Childcare Survey. Income: ONS — Household disposable income. Housing: ONS — Private rent and house prices. See the full methodology and dataset.
What salary do you need to break even in London?
One child in care
£23,500
Gross salary needed just to cover £23,160 of childcare and commuting after tax.
Two children in care
£46,000
Gross salary needed to cover £41,760 of care for an infant plus a preschooler, and the commute.
Below those numbers, a second income in London is effectively unpaid work once childcare and travel are deducted — the classic second-earner trap. Above them, every extra £1,000 of salary is real money, plus pension contributions and the wage growth you keep by staying in the workforce (see the opportunity cost of staying home).
Break-even assumes the returning parent's salary is taxed on its own at United Kingdom rates, with no subsidy applied. Local subsidies — see the United Kingdom guide — can move the line significantly.
Run your own London numbers
London childcare questions parents ask
How much does daycare cost in London?
Full-time infant daycare in London averages about £1,750 per month (£21,000 a year) in 2026. Care for a 3–4 year old is lower, around £1,550 per month, because staff-to-child ratios are less demanding.
Is it worth going back to work in London?
With one child in full-time care you need to earn roughly £23,500 gross just to break even on childcare and commuting in London. With two children in care that rises to about £46,000. Below those lines the second income is close to unpaid work in cash terms, though pension contributions and future wage growth still count.
What share of income goes to childcare in London?
One infant in full-time care costs about 44.7% of the median United Kingdom household income of £47,000. Add a median two-bedroom rent of £2,200 a month and childcare plus housing consume roughly 100.9% of gross household income.
How can families in London lower childcare costs?
The usual levers are claiming every subsidy available in United Kingdom, sharing a nanny with another family, shifting to a 3–4 day week so you pay for fewer days, staggering parents' hours, and timing your return for when your child moves into the cheaper preschool room.
Compare with other United Kingdom cities
- Childcare costs in Manchester
- Childcare costs in Birmingham
- Childcare costs in Leeds
- Childcare costs in Bristol
- Childcare costs in Glasgow
- Childcare costs in Edinburgh
See all cities and states · Childcare costs by country · Living wage for a family with kids