In England you can use funded hours and Tax-Free Childcare with several types of registered childcare. They all follow the same Early Years Foundation Stage (EYFS) curriculum, but they differ in how they are run, who looks after your child and what they cost.
Day nurseries
A day nursery is a group setting on non-domestic premises, which can be anything from a converted house to a purpose-built building. Ofsted’s register data calls most of these “full day care”. They are registered with Ofsted, inspected under the early years framework, and look after children in rooms grouped by age.
- Staffing: legal minimum ratios are 1 adult to 3 children under 2, 1 to 5 for 2-year-olds, and 1 to 8 (or 1 to 13 with a qualified teacher) for ages 3 and over. See nursery ratios.
- Good fit if: you need longer hours, a single place for several years, or care for a baby.
- Things to check: opening hours and holiday closures, fees for non-funded hours, and your child’s key person.
Pre-schools and playgroups
Pre-schools and playgroups are also group settings registered with Ofsted. Ofsted’s register data calls these “sessional day care”, and they often run set morning or afternoon sessions, sometimes in community or church halls. Many take children from 2 or 3 years old, but age ranges vary, so ask.
- Good fit if: you want shorter sessions, a smaller setting, or want to use mainly funded hours.
- Things to check: the days and sessions on offer, whether you can combine them with another provider, and whether they offer funded places for your child’s age.
School nursery classes and nursery schools
Maintained nursery schools and nursery classes in primary schools are run by the council or a school, and are inspected under the school inspection framework, not as early years providers. Schools that admit children aged 2 and over are normally not required to register this provision with Ofsted.
- Staffing: for children aged 3 and over, the legal ratio is 1 member of staff to 13 children, with a school teacher and at least one other staff member qualified at Level 3.
- Good fit if: you want free hours at a school setting with a teacher, and sessions that fit school hours.
- Things to check: the hours and terms, whether the nursery takes 2-year-olds, and how admission to nursery relates to reception. A nursery place does not guarantee a place in the school’s reception class.
Childminders
A childminder is registered with Ofsted, or with a childminder agency, to look after children in return for payment. They usually work from a home, or from other non-domestic premises, and work alone or with a small number of assistants. A childminder:
- may care for up to six children under the age of eight at once, including their own children
- may care for no more than three young children (until 31 August after the child’s fifth birthday)
- should care for only one child under one at a time, with exceptions where each child’s needs are met
Childminders on the Early Years Register can offer funded hours, and can be paid with Tax-Free Childcare. Good fit if: you want a small group, a home setting, flexible hours or care that can cover school drop-offs. Things to check: cover for holidays and sickness, their qualifications and first aid certificate, and the latest Ofsted report.
What about nannies and relatives?
A nanny who looks after children in the home of one of the children, from up to two families, is exempt from Ofsted registration, and a nanny or relative cannot be paid with funded hours. A registered nanny can be paid using Tax-Free Childcare, and a relative can only be paid with Tax-Free Childcare if registered as a childminder.
Cost: nursery against childminder
Coram’s Childcare Survey 2026 found childminders cheaper than nurseries for 50 hours after funded hours in every English region.
| Under 2, 50 hours after 30 funded hours | Nursery | Childminder |
|---|---|---|
| Inner London | £185.10 | £179.83 |
| Outer London | £171.39 | £154.50 |
| England | £148.82 | £122.32 |
For 25 hours with no funded hours, an under-2 costs £238.01 at a nursery and £226.39 with a childminder in inner London. In outer London it is £216.94 and £199.09. See nursery fees in London for all the figures.
Questions
What is the difference between a pre-school and a nursery?
Both are group settings registered with Ofsted and following the EYFS. Day nurseries often offer longer days and more of the year and may take babies. Pre-schools often run shorter sessions and take children from 2 or 3. Because the labels cover a range of settings, what matters is the opening hours, ages taken, funded places and the latest inspection.
How much does a childminder cost per hour in London?
The DfE’s 2025 survey reports a national average for childminders of £6.36 an hour for under-2s, £6.30 for 2-year-olds and £6.21 for 3 and 4-year-olds. It does not publish childminder hourly fees for London on their own. London’s average across all provider types was £8.95, £8.92 and £8.60, and Coram’s weekly figures for inner London childminders are in the table above. Prices vary by childminder.
What is the 2-hour rule for Ofsted?
Ofsted does not register anyone as a childcare provider if they look after each child for less than 2 hours a day, unless it is before or after-school care. Childminders, by definition, care for at least one child for more than 2 hours in a day. See how to check a nursery.
Can I use more than one type of provider?
Yes. Many families combine a nursery or pre-school with a childminder. Funded hours can be split across providers, with limits set by your council, and government guidance says no more than 2 sites in a day.
