.png)
Hiring a full-time nanny now costs UK families £3,361 per month, or £40,326 per year, an increase of 12% or £4,342 on the previous tax year.
In London, nanny salaries have risen by 8% to £3,852 per month, or £46,228 per year – equivalent to an annual pay rise of £3,380.
Inflation-busting pay rises for nannies are attributed to accelerated nursery closures and return-to-office mandates for parents forcing up demand.
A full-time, live-out UK nanny working 50 hours per week is earning, on average, £4,342 more this year than last, according to the latest gross figures published annually by Nannytax, the nanny payroll provider and employment experts. The yearly salary for nannies across the UK (not including London) is now £40,326, equivalent to £3,361 per month – a 12% increase on the previous tax year.
In London, nannies have seen annual pay increases of 8%. A full-time, live-out London nanny will now cost parents on average £3,852 per month or £46,228 per year. Further out of the city in the Home Counties & Greater London, nannies have seen similar salary increases of 9% to £44,018 per annum – equivalent to a pay rise of £3,718.
Nannytax believes high demand for nannies is driving up salaries, with the latest ONS data showing access to childcare places is now a postcode lottery. The National Day Nurseries Association (NDNA) has reported nursery closures accelerated between September 2022 and 2023, with 72 more closures than the previous year, which it attributes to Government underfunding of placements. Meanwhile, fewer parents are working from home as employers urge people to return to the office for at least part of the week, which is having an upwards effect on demand for part-time nannies.
Average gross live-out nanny salaries for tax year 2023/24:
Nannies who received pay rises from existing employers are in a minority: only 22% of those who stayed with the same family for the tax years 2023-24 and 2022-23 were given a pay increase, which suggests that to access better rates of pay nannies may need to find new roles.
Kirsty Wild, nanny employment expert at payroll provider 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. We’re also seeing higher-income families looking for ‘hyphenated’ nannies, who offer childcare alongside other specialist skills. Special education needs and housekeeping are especially in demand, with SEN-nannies and nanny-housekeepers able to command a higher wage for a dual role.
“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. Working parents can also pay Ofsted-registered nannies via the underused Tax-Free Childcare scheme so it’s well worth checking eligibility on Gov.uk.
“We’d urge all families employing full- or part-time nannies to check they’re compliant with tax and employment rules. Common oversights include assuming nannies can be self-employed, when the vast majority must be employed, believing you can pay a nanny’s wages through a business – which isn’t allowed – and not understanding the rules around increasingly popular nanny share arrangements. When sharing a nanny with another family, the nanny must be paid at least national minimum wage by each family involved, who must also draw up separate employment contracts.”
Frankie Gray, founder and director of nanny agency franchise Harmony at Home, says: “In the past 12 months we have seen the market start to balance out in terms of the supply of jobs to the number of candidates. This is a stark contrast to the pandemic boom which saw nannies in ferocious demand from parents desperately needing childcare when nurseries were closed to all but the children of key workers. However, there is still a gap at the bottom of the market left by au pairs. Pre-Brexit, many au pairs would stay on as nannies after their placements finished – their childcare experience benefiting UK families – but this is no longer the case.
“We’re also seeing a change to job descriptions which is likely having an upwards effect on the wages of full-time nannies. 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.”
Author: Kirsty (Nannytax)
Instagram: @nannytaxuk
Comments