Could Nursery Fees Rise After Budget 2026?

Nursery fees could come under pressure after Budget 2026, but no particular increase in parents’ bills is confirmed by the Budget. The useful next step is to check your provider’s pricing plans and compare the cost of the sessions you actually use.

What changed for nursery staffing costs?

Minimum wage rates will increase by 3.9% from April 2027. The National Living Wage for workers aged 21 and over will rise by 50p to £13.21 an hour.

That changes the pay floor for affected staff. It does not mean every nursery’s total costs rise by 3.9%, or that every parent’s invoice rises by that amount. Staffing patterns, existing pay, premises costs and funded income differ between providers.

What has the nursery sector said?

In its response to the Budget, the National Day Nurseries Association says the announced high-street business rates discounts do not include nurseries. It asks for childcare funding to reflect the wage increase. This is a sector body’s response, rather than confirmation of a fee increase at your nursery.

The combination could add pressure to some providers’ budgets. Whether they change fees, and by how much, depends on their own position. Ask for a written quote instead of using the wage announcement as a forecast for your bill.

What should I ask my nursery?

• When will the next fee review take effect, and what notice does my contract require?
• What is the price for my agreed days, hours and weeks of attendance?
• Which hours are funded, and which remaining charges are for childcare, food or other items?
• Are there optional items or a different session pattern that would change the bill?
• Can I have an itemised comparison between my current invoice and the proposed new one?

If your provider spreads funded hours across the year, our stretched-hours guide helps you compare the weekly pattern. Compare equivalent attendance before deciding which quote costs less.

How would a higher eligible bill affect my deposit?

Tax-Free Childcare normally adds £2 for every £8 you pay in, within the scheme’s limits. The following example assumes you qualify, have enough top-up allowance left and have no existing account balance. It is arithmetic, not a predicted nursery fee rise.

For an extra £100 of eligible childcare, you would pay an extra £80 into the account and receive a £20 government top-up under those assumptions. If you have used all your available top-up, you would need to cover the full extra £100 yourself, assuming no account balance is available.

Use the calculator with your actual eligible bill, available balance and top-ups already received. If you use Universal Credit childcare support, read our scheme comparison before considering a switch.

Do I need to change anything immediately?

Check your contract and ask about planned charges before changing payments or attendance. Keep paying the amount your provider has agreed. A national cost announcement alone does not establish a new invoice amount.

For the other parent-related announcements, see our Budget 2026 overview.