These changes are effective from 1 September 2025
Overview
Children’s Centres and Children and Family Hubs are at the heart of Hackney Council’s commitment to children and families - providing high-quality sustainable childcare and essential family support services that give every child the best start in life.
This commitment is why, unlike many other local authorities, we chose to continue subsidising childcare while maintaining our network of children’s centres, providing a wide range of services, as well as nurseries for local parents
However, like many councils across the country, we are now facing significant financial pressures. To strengthen the ability of our Children’s Centres and Family Hubs to offer quality services for our families, while continuing to support those that need our help the most, we’ve had to make some difficult but necessary decisions about how we allocate our resources.
After carefully considering our options, we decided to maintain the council subsidies for families with an annual income below £55,000 that access childcare in our maintained Children’s Centres and Children and Family Hubs. This will ensure that some of our most disadvantaged children have access to additional support and high quality early education and childcare.
The changes
From 1 September 2025, changes to nursery fees will come into effect at some of our Children’s Centres and Children and Family Hubs.
- Families earning under £55,000 (Bands 1 and 2) will continue to receive a subsidy, but their childcare fees will increase by 7.5%, in line with other Council services.
- Families earning over £55,000 (current Bands 3, 4 and 5) will no longer receive a council subsidy and will pay the full cost of childcare.
- Children in need will continue to receive childcare support.
To reduce the impact on families, these changes align with the national expansion of government-funded childcare. From September, eligible children aged 9 months to 5 years old will be entitled to 30 hours of funded childcare per week, for 38 weeks of the year.
Summary of the changes to current fee bands
| Income band | Annual household income | September 2025 onwards |
|---|---|---|
| Band 1 | Under £34,000 | Approximately 7.5% fee increase |
| Band 2 | £34,000 to £55,000 | Approximately 7.5% fee increase |
| Band 3 | £55k to £70k | Full cost of childcare applies |
| Band 4 | £70k to £100k | Full cost of childcare applies |
| Band 5 | Over £100k | Full cost of childcare applies |
More information
We know this will be a difficult transition for some families, and we are here to help. Please do not hesitate to speak with your Children’s Centre manager or explore our FAQs for more details.
- Cabinet decision: Find out more about changes that were approved at Cabinet on 28 April 2024
- Detailed proposals: View Appendix 4 of February Overall Financial Position 2024-2025 Cabinet report
- Full fee schedule (from September 2025): Fee Structure September 2025
- Help Paying for Childcare: Visit our childcare support guide
Please also take a look at the financial modelling case studies which show what the changes may mean for different families: Financial Modelling Case Studies.