Five ways to cut the cost of your nursery fees

Nursery fees are one of the biggest household expenses for parents across the UK - and for many families, they rival mortgage or rent payments. The good news? There are more ways to reduce what you're paying than most people realise.

Some of these are government schemes that have been around for years, but still fly under the radar. Others are newer. Either way, knowing your options could save you a meaningful amount each month. Here's what to look into.

1. Tax-Free Childcare

This is one of the most valuable schemes out there, and one of the most underused.

For every £8 you put into your Tax-Free Childcare account, the Government adds £2. That's effectively a 20% top-up on everything you spend on childcare, up to £10,000 per child per year - meaning you could save up to £2,000 per child, or £4,000 for a disabled child.

You're eligible if you and your partner (if you have one) are both working and each earning at least £120 a week and no more than £100,000 a year. It's open to parents of children under 12, and self-employed parents can use it too.

One important note: it can't be used alongside Universal Credit, Tax Credit, or Child Tax Credit. You'll want to check which option works out better for your situation.

👉 Find out more and apply at gov.uk/tax-free-childcare

2. Free Childcare Hours for 3 and 4-Year-Olds

All 3 and 4-year-olds in England are entitled to 570 hours of free childcare per year, typically taken as 15 hours a week over 38 weeks. And if you're working (and meet income requirements), you may be able to claim a further 15 hours on top of that, bringing it up to 30 hours a week.

The 30-hour entitlement kicks in from the term after your child turns 3, and you can apply from when they're 2 years and 36 weeks old. It stops when they start Reception.

It's worth speaking to your nursery about how they offer the funded hours - some settings allow you to spread them differently across the year, which can help with planning.

👉 15 hours funding | 30 hours funding

3. Funded Childcare for 2-Year-Olds

If you're receiving certain types of government support, your 2-year-old may be entitled to 570 funded hours per year too.

You're likely eligible if you receive Income Support, income-based Jobseeker's Allowance, Universal Credit, or Child Tax Credit, among others. Again, speak to your nursery - they'll be able to talk you through how funded hours work at their setting.

👉 Check eligibility here

4. Universal Credit Childcare Support

If you're already on Universal Credit, you could claim back up to 85% of your childcare costs up to £646 a month for one child, or £1,108 for two or more.

You or your partner generally need to be working (or have a job offer), but the number of hours doesn't matter. Your circumstances are reviewed monthly, so if anything changes - like your hours or income - it's important to update your account promptly.

👉 More info on Universal Credit childcare

5. Earn Cashback on the Fees You're Already Paying

Even after claiming everything you're entitled to, most parents are still paying a significant nursery bill each month - and almost no UK nursery accepts credit cards, which means most parents can't earn any rewards on that spend at all.

That's exactly why we built Kindo.

Kindo lets parents earn 1.75% cashback on their nursery invoices - higher than any major UK rewards credit card. The process is simple: you pay your nursery as normal via bank transfer, then upload your invoice into the Kindo app. We verify it and add Kindo Points to your account, which you can spend at over 190 partner brands including Amazon, Boots, M&S, Nike, and H&M.

On a £1,500 monthly nursery fee, that's over £26 back every month - or more than £315 a year just for doing something you were already doing anyway.

The app is free to download, with cashback available on a £6.99/month subscription.

👉 Download Kindo and start earning on every nursery invoice.

We hope this helps you find a few extra pounds each month. Nursery fees are a stretch for most families, but with the right combination of government support and tools like Kindo, you can make that spend work a lot harder for you.

Got a question about how Kindo works? drop us a message - we're always happy to help.