Tax-Free Childcare or the Workplace Nursery benefit?

Enter your salary and nursery bill to see which saves you more.

£
£
If you have more than one child at nursery, enter the total bill for all of them. If your child gets funded hours, enter the bill after they're taken off.
Children at nursery
Why we need this: Tax-Free Childcare is capped at £2,000 a year per child, so the number of children changes how much it can save you.
Does your partner earn over £100,000?
Why we need this: Tax-Free Childcare stops if either parent earns over £100,000. Choose No if you don't have a partner.

The Workplace Nursery benefit saves you £3,482 more a year.

Workplace Nursery benefit

Saves more
£5,482a year
£457 a month
30% off your nursery bill

Tax-Free Childcare

£2,000a year
£167 a month
11% off your nursery bill
Capped at £2,000 a year per child.

Good to know

  • You can't use both for the same nursery fees. You can use the Workplace Nursery benefit for nursery fees and Tax-Free Childcare for other childcare, such as an after-school club.
  • Tax-Free Childcare covers more types of childcare, including childminders and holiday clubs. The Workplace Nursery benefit covers registered nursery fees only.
  • Funded hours work alongside either option.
  • Tax-Free Childcare stops if either parent's adjusted net income is over £100,000. The Workplace Nursery benefit has no income limit.

This calculator gives estimates only and isn't financial or tax advice. Your actual saving will depend on your circumstances. If you're unsure which option is right for you, speak to a qualified financial adviser.

Illustrative figures using 2026/27 tax rates for England, Wales and Northern Ireland: income tax at 20%, 40% and 45%, with the personal allowance reduced above £100,000, and employee National Insurance at 8% and 2%. Scottish taxpayers will see different figures. Assumes your salary is your only income and you work full time (37.5 hours a week at the £12.71 National Living Wage).

Workplace Nursery benefit savings are based on Gogeta's scheme and are shown after all costs. Savings with other providers may differ.

Tax-Free Childcare: the government adds £2 for every £8 you pay in, up to £2,000 per child per year (£4,000 for a disabled child). Both parents must be working and meet minimum earnings rules.