Setting your hourly rate as a UK childminder

Most UK childminders undercharge. They look at the local nursery rate, subtract a pound or two because "I'm just one person at home", and end up earning less per hour than the staff at the nursery — with none of the pension, sick pay or holiday.

This guide walks you through a simple costing method that gives you a rate you can defend, then shows you how to actually raise it.

Why "the going rate" is a trap

Average UK childminder rates in 2026 sit around £6.00–£8.50 per hour outside London, £7.00–£12 in London. But "average" hides huge variation. Many of the lowest rates are people who haven't adjusted in 5+ years. Pricing to the average is pricing to the past.

The honest costing method

Step 1: Work out your real hours

You probably advertise 50 weeks × 50 hours = 2,500 hours a year. The reality is closer to:

• 5 weeks holiday (let's be human)
• 10 sick or family-emergency days
• 5 INSET/training days
• ≈ 4 hours a week of unpaid admin, planning, observations

That gives you about 1,900–2,000 chargeable hours, not 2,500.

Step 2: Add up your true costs

• Food, snacks, drinks for the children
• Toys, books, consumables
• Outings, classes, soft play
• Wear and tear on the home and furniture
• Heating, water, electricity (the use-of-home portion)
• Public liability insurance, Ofsted fee, DBS, first aid
• Professional association membership, CPD courses
• Software (ChildmindPro and similar)
• Mileage

For most childminders this lands somewhere between £4,000 and £8,000 a year.

Step 3: Pay yourself a real salary

Decide what you want to earn. Not what you'll settle for. Then add:

• Pension contribution (start with 5% of salary)
• Holiday pay (you took 5 weeks unpaid above — bake them in)
• Sick pay buffer (≈2 weeks)
• Tax buffer (25–30% of profit)

Step 4: Do the maths

(Desired take-home + tax buffer + costs) ÷ chargeable hours = your hourly rate.

Worked example: £28,000 take-home + £9,000 tax + £6,000 costs = £43,000. Divided by 1,950 hours = £22/hour. That's the rate you'd need to charge per child to hit that salary — but you typically mind 2–3 children at once, so your per-child rateis closer to £8–£11/hour.

Positioning against nurseries

Don't compete on price. Compete on what only a childminder can offer:

• Mixed-age siblings together
• Flexible hours, school runs, term-time only
• The same trusted adult every day for years
• Outings, gardens, real-world learning
• Home-cooked food, fewer illnesses

A 2026 family choosing childcare is choosing relationship, not babysitting. Charge accordingly.

How to actually raise your rates

1. Annual review baked into the contract. Every September you review rates and notify in writing for the following January. No surprises, no apologies.
2. Give 60 days' notice. Parents can plan; you don't lose families to a sudden jump.
3. Increase in line with inflation as a minimum. Standing still is going backwards.
4. Honest, brief explanation. "From January my rate increases from £7.50 to £8.25/hour, in line with rising costs. Thank you for trusting me with X." That's it.
5. Don't apologise. Your rate is the rate.

Funded hours and your rate

Local authorities pay £6–£8.50 for the funded entitlement. If your private rate is higher, you're effectively subsidising the government. That's fine if your books are full, but make sure you're charging for consumables and additional hours at your normal rate. See our funded hours guide for the detail.