High demand for nannies is driving up costs, as impact of childcare shortages hits families
Nursery costs, placement shortages and parents returning to work are all factors behind rising nanny costs, according to new data
The cost of hiring a full time nanny has risen by 12 per cent in a year, according to new data.
With average childcare costs rising across the board (they've risen seven per cent in the last 12 months) and parents struggling to access free childcare spaces in their area, more and more families are turning to nannies to help look after their children.
New figures from nanny payroll and employment experts Nannytax show that the cost of hiring a full-time live-out nanny in the UK is £40,326 per year (or £3,361 per month). That's an increase of £4,342 (or 12 per cent) compared to the previous year. In London, nannies have seen annual pay increases of around eight per cent, and now cost an average of £3,852 per month or £46,228 per year.
- London: £17.78 per hour, £3,852 per month, £46,228 per year - up 7.89 per cent
- Home Counties & Greater London: £16.93 per hour, £3,668 per month, £44,018 per year - up 9.23 per cent
- Rest of UK: £15.51 per hour, £3,361 per month, £40,326 per year - up 12.07 per cent
Data based on 5,500 internal payroll records for the tax year 2023/24. Salaries are in gross terms and based on a live-out nanny working full time, 50 hours per week.
Kirsty Wild, nanny employment expert at Nannytax, says: “We are seeing rising demand for part-time nannies who can do wraparound care as more parents returning to offices find they can’t fit pickups and drop offs around their commutes. Meanwhile, the struggle to secure nursery places is pushing more parents to consider nannies as an alternative."
For parents concerned about the cost of nursery, especially if they have more than one child, nannies can prove a cost effective childcare option, as Kirsty explains: “For families with multiple nursery-age children, a nanny can work out cheaper than the combined nursery fees, because they don’t charge extra for looking after more than one child at a time." If you opt for a nanny, you may be able to take advantage of the tax-free childcare allowance - where for every 80p you add to your childcare account (which is used to pay for your childcare), the government will add 20p, up to a maximum of £500 every three months (£2,000 a year). Your nanny must be registered with the tax-free childcare scheme and be regulated by a body such as Ofsted, the Early Years Register or the Childcare Register.
As the demand for nannies grows, so is the scope for tasks they undertake, with parents looking for 'hybrid nannies' to help their families. Frankie Gray, founder and director of nanny agency franchise Harmony at Home, says: "Historically, nannies were just nannies, but now we’re seeing the rise of the ‘hybrid nanny’ who might also serve as a tutor, housekeeper, music teacher, sports instructor, special education needs specialist, or PA. The added value to families who can afford it is such that they are willing to pay more for nannies who can offer more than childcare. Roles for hybrid nannies make up around one sixth of all current vacancies.”
GoodtoKnow Newsletter
Parenting advice, hot topics, best buys and family finance tips delivered straight to your inbox.
For more help with childcare costs, make sure you are claiming child benefit if you are eligible. Even if you don't want the payments, claiming has long-term benefits for your money.
Sarah is GoodtoKnow’s Consumer Writer & Money Editor - which means she writes about everything from this year's top toys and the newest toy releases, to discounts on days out and childcare costs. Sarah is passionate about helping mums save money wherever they can - whether that's spending wisely on the right toys and kidswear or keeping on top of the latest news around child benefit, the motherhood penalty. A writer, journalist and editor with more than 15 years' experience, Sarah is all about the latest toy trends and is always on the look out for toys for her nephew or Goddaughters so that she remains one of their favourite grown ups. When not writing about money or best buys, Sarah can be found hanging out with her rockstar dog Pepsi, getting opinionated about a movie or learning British Sign Language.
-
Evolution of Barbie explained: 6 ways the iconic doll has adapted over the years
We look at how Barbie has changed over the years, as the iconic doll celebrates its 65th birthday
By Sarah Handley Published
-
How do air traffic controllers make sure flights stay safe? An explainer for kids by The Week Junior
Air traffic controllers make sure thousands of planes stay safe
By The Week Junior Published
-
4 clear steps to financially handle a separation or divorce, according to money experts
Money is a huge factor to resolve when you split from your partner - and it can be daunting. But these steps can help give you an immediate plan to follow
By Sarah Handley Published
-
How to save money in the summer holidays - 20 easy ideas for parents
Try these quick tips to save money during the summer holidays, without compromising on fun
By Sarah Handley Published
-
Download this FREE pocket money summer supplement - brought to you by The Week Junior and Big Issue
Help your kids learn to manage their money this summer with this downloadable guide
By Adam England Published
-
Save up to £18 on cinema tickets with this secret Amazon Prime perk
Prime members can use this trick to save up to £18 on a trip to the cinema with the family this summer
By Sarah Handley Published
-
Two-child benefit cap: what is it and will it be scrapped?
We look at what the two-child benefit cap is and the likelihood of it being abolished, amid mounting pressure on the Prime Minister to scrap it
By Sarah Handley Published
-
Are you missing out on up to £2,000 a year to help with childcare costs? Here's how to claim it
With 1.3 million parents eligible, and only 500,000 claiming it, you could be missing out on free cash from the government to help with the cost of childcare and holiday clubs over the summer
By Sarah Handley Published
-
Morrisons launches Family Picnic Box for £20, but there is a way you can get it for less
Avoid sky-high food prices, and additional mental load, on day trips with the kids this summer with this genius picnic box from Morrisons
By Sarah Handley Published
-
Holiday childcare costs up 6% says new report, with supply shortages still an issue
Working parents facing higher costs when it comes to sorting childcare provisions during the school holidays
By Sarah Handley Published