Childcare costs in Merton 2026/27
Merton's 2026/27 funded hourly rate for 3 to 4 year olds is £7.64/hr, £3.86/hr below the Outer London regional average of £11.50/hr and £0.92/hr above the England national average of £6.72/hr. That ranks Merton 4th of 19 authorities in Outer London for funded rate. Use the calculator below to work out exactly what you'll pay each month after the funded hours are applied.
Across the standard 38 funded weeks, the 30 hours entitlement in Merton is worth approximately £8710/year for a 3 to 4 year old, before any private top-ups for additional hours, consumables, or meals.
| Age band | Funded rate | vs national | Calculator |
|---|---|---|---|
| Under 2 | £14.60/hr | +£2.13 | Calculate |
| 2 to 3 years | £10.75/hr | +£1.59 | Calculate |
| 3 to 4 years | £7.64/hr | +£0.92 | Calculate |
Frequently asked questions about Merton childcare costs
›What is the 2026/27 funded childcare rate in Merton?
For 2026/27, Merton pays providers £7.64/hr for 3 to 4 year olds, £10.75/hr for 2 year olds, and £14.60/hr for under 2s. These are the DfE Early Years National Funding Formula allocations effective April 2026.
›How does Merton's funded rate compare to the rest of Outer London?
Merton's 3-4 year old rate of £7.64/hr is £3.86/hr below the Outer London regional average of £11.50/hr, ranking 4th highest of the 19 authorities in Outer London.
›Will the funded rate in Merton cover my whole nursery bill?
Usually not in full. The funded hourly rate of £7.64 pays the provider for funded hours only, so any hours above your entitlement, plus consumables and meals, are charged at the nursery's private rate, which in Outer London is typically around £11.50/hr.
›How much is the 30 funded hours worth annually in Merton?
Across the standard 38 funded weeks, the 30 hours entitlement at Merton's 2026/27 rate of £7.64/hr is worth approximately £8710 per year for a 3 to 4 year old.
Neighbouring authorities (alphabetical)
- Kingston upon Thames£7.61/hr (3-4)
- Redbridge£7.03/hr (3-4)
Other authorities in Outer London
Compare Merton with other authorities
See the Outer London league table and compare Merton side by side with any English local authority on the comparison page.