Is It Worth Going Back to Work After Nursery Costs? The Real Maths
By Clear Nursery Fees Team · 3 April 2026
Returning to work almost always produces a net financial gain, even after nursery costs. The exact amount depends on your salary, your area and which support you claim. This post models four salary bands using 2026 figures to show you the real numbers.
This post runs the maths for four salary bands using 2026 figures for tax, National Insurance, funded hours, Tax-Free Childcare and a typical full-time nursery place. The aim is to give you a starting point, not a precise personal forecast. Use the calculator at the end to model your specific situation.
The assumptions
- One child aged 1 year (too young for any funded hours)
- Full-time nursery: 40 hours per week, 51 weeks per year
- Both parents working (partner already in work)
- England only
- Nursery rates: North West average £55-£65/day (approx. £7-£8/hr), Inner London average £95-£115/day (approx. £12-£14/hr)
- Tax year 2025-26 rates apply
Once a child turns 9 months and meets eligibility, the 15 funded hours kick in, which changes the maths significantly. This comparison shows the hardest-case scenario: under-1s with no funded hours.
The four salary scenarios
£28,000 gross salary (North West)
- Gross monthly: £2,333
- Income Tax + NI: approx. £460/month
- Net take-home: approx. £1,873/month
- Nursery cost (40hr/wk, 51wks, £7.50/hr): approx. £1,300/month
- Universal Credit childcare element (85% of eligible costs, capped at £1,014.63/month): UC pays approx. £1,105/month back
- Net nursery cost after UC: approx. £195/month
- Net monthly gain from working: approx. £1,678
At £28k in the North West with UC childcare support, returning to work produces a meaningful net gain. The UC childcare element covers most of the nursery bill.
£35,000 gross salary (North West)
- Net take-home after tax/NI: approx. £2,280/month
- Nursery cost: approx. £1,300/month
- Tax-Free Childcare (not on UC at this income): £2,000/year government top-up = £167/month saving
- Net nursery cost after TFC: approx. £1,133/month
- Net monthly gain: approx. £1,147
At £35k you are likely above UC eligibility, so TFC is your main support. The net gain is still substantial but the nursery bill takes a bigger bite than at £28k with UC.
£50,000 gross salary (Inner London)
- Net take-home after tax/NI: approx. £3,070/month
- London nursery cost (£13/hr, 40hr/wk, 51wks): approx. £2,253/month
- TFC saving: £167/month
- Net nursery cost: approx. £2,086/month
- Net monthly gain: approx. £984
At £50k in London, almost two-thirds of net take-home goes to nursery. You are financially ahead, but the margin is thin. This is the salary band where the question "is it worth it?" feels most acute.
£80,000 gross salary (Inner London)
- Net take-home after tax/NI: approx. £4,480/month (includes higher-rate tax, student loan repayments vary)
- London nursery cost: approx. £2,253/month
- TFC saving: £167/month
- Net nursery cost: approx. £2,086/month
- Net monthly gain: approx. £2,394
At £80k, the nursery bill is painful in absolute terms but represents a smaller share of take-home. The argument for returning is financially clear.
The funded hours turning point
The calculations above are for under-1s with no funded hours. Once your child reaches 9 months and you both meet the working income threshold, you gain 15 funded hours per week (approximately £450-£600/month of value depending on your LA rate). At age 3, eligible families get 30 funded hours.
At the 30-hour stage, the North West £35k scenario net gain rises from £1,147 to approximately £1,600. The London £50k scenario rises from £984 to approximately £1,400.
What this doesn't include
These figures exclude:
- Commuting costs (which reduce net gain, sometimes significantly)
- Career progression value (earnings, pension contributions, future earning potential)
- Employer pension contributions (which often only accrue while working)
- Emotional and wellbeing factors
- Partner's salary and tax position (which affects UC eligibility and TFC thresholds)
The financial maths almost always points toward returning to work producing a net gain, even in the hardest cases. The question for many parents is whether the margin justifies the logistics.
Your actual number
Every family's figure is different. The salary bands above use average costs and typical tax positions. Your nursery's rate, your LA's EYNFF rate, your partner's income and which support you are eligible for all shift the outcome.
The Clear Nursery Fees calculator models all of these variables together and produces your specific monthly net cost, so you can run your own break-even calculation.