Nanny Costs UK
Nannies in the UK cost £10-20 per hour gross or £25,000-45,000 annually for full-time positions, representing a significant childcare expense offering personalized home-based care. Understanding nanny costs, employer responsibilities, and alternatives helps families choose appropriate childcare within budget. Part-time nannies cost £400-1,000/month for 15-25 hours/week while live-in nannies average £350-500/week net plus accommodation. Unlike babysitters for occasional evening care, nannies provide regular ongoing childcare requiring formal employment contracts and tax/NI contributions. Let's explore UK nanny costs for 2025.
Nannies work in your home providing dedicated care for your children, offering flexibility in hours, activities, and routines unavailable at nurseries. Families employ nannies directly, becoming legal employers responsible for payroll, tax, National Insurance, and employment rights.
How Much Do Nannies Cost?
Hourly Rates (Gross): £10 to £20 per hour before tax/NI. London £12-20/hour, regional £10-15/hour. Experienced nannies with qualifications £15-20/hour. Newly qualified £10-12/hour.
Part-Time Nanny: £400 to £1,000 per month gross for 15-25 hours/week. Three days/week (24 hours) at £12/hour = £288/week or £1,250/month gross.
Full-Time Live-Out Nanny: £25,000 to £45,000 per year gross. London £30,000-45,000, regional £25,000-35,000. Based on 40-50 hours/week. Plus employer NI contributions (13.8%) add £3,450-6,210/year.
Live-In Nanny: £300 to £500 per week net after tax. Lower cash salary than live-out but includes accommodation and often food. Total package value £20,000-30,000/year including room/board worth £5,000-10,000/year.
Nanny Share: 60-75% of solo nanny cost per family. Two families share one nanny caring for both sets of children together. £15/hour nanny = £9-11/hour per family. Saves £400-800/month per family.
Maternity Nurse (Newborn Specialist): £120 to £200 per day or £800-1,500/week. Short-term (4-12 weeks) specialized newborn care. Overnight care adds £150-250/night.
Additional Nanny Costs
Employer National Insurance: 13.8% on earnings above £9,100/year. £30,000 nanny salary = £2,884/year employer NI. Mandatory cost on top of gross salary.
Payroll Service: £5 to £20 per month (£60-240/year) for PAYE/NI calculations, payslips, RTI submissions to HMRC. NannyPaye, Nannytax popular services. DIY payroll possible but complex.
Holiday Pay: Minimum 5.6 weeks (28 days) paid annual leave statutory. £30,000 salary includes holiday cost, but need cover during nanny's holidays via babysitter (£10-15/hour) or grandparents.
Sick Pay: Statutory Sick Pay £116.75/week (October 2024) from day 4 for up to 28 weeks. Many employers offer contractual sick pay exceeding SSP.
Pension Contributions: Auto-enrolment requires minimum 3% employer contribution on qualifying earnings. £30,000 salary = approximately £650/year employer pension contribution.
Public Liability Insurance: £100 to £300 per year. Covers nanny accidents/injuries while working. Recommended though not legally required.
DBS Check: £40 to £60 one-time enhanced DBS check. Essential safeguarding requirement for childcare workers.
Activities and Outings: £50 to £200 per month for classes (swimming, music), day trips, craft supplies, entertainment. Usually agreed in contract who pays.
Factors Affecting Nanny Costs
📍 Location
London nannies earn £12-20/hour versus regional £10-15/hour. Inner London (Zones 1-2) highest at £15-20/hour. Northern England/Scotland lowest at £10-13/hour. Annual full-time difference: London £35,000-45,000 versus regional £25,000-32,000.
🎓 Qualifications and Experience
Newly qualified (CACHE Level 3, NNEB) £10-13/hour. Experienced 5+ years £13-17/hour. Norland nannies (prestigious college) £18-25/hour. Maternity nurses/specialists £15-20/hour minimum. Unqualified nannies illegal for registered childcare.
👶 Number of Children
One child baseline rate £12/hour. Two children add £1-2/hour = £13-14/hour. Three children £14-16/hour. Four+ children require exceptional experience commanding £16-20/hour.
⏰ Hours and Flexibility
Standard hours (8am-6pm, Mon-Fri) baseline rates. Early starts (before 7am) add £1-2/hour. Evenings/weekends add £2-5/hour. Overnight care £80-150/night. Flexibility and unsocial hours command premium rates.
Nanny vs Other Childcare Options
Nanny vs Nursery: Full-time nanny £30,000-40,000/year versus nursery £12,000-18,000/year per child. Nanny more expensive for one child, competitive for 2-3 children. Nanny offers flexibility, home environment, no illness closures. Nursery provides social interaction, structured learning.
Nanny vs Childminder: Nanny £12-18/hour versus childminder £5-8/hour. Childminder cheaper but shared care with multiple children in their home. Nanny provides exclusive attention in your home.
Nanny vs Babysitter: Nanny regular ongoing employment (£10-20/hour gross plus employer costs). Babysitter casual occasional care (£8-12/hour net, no employer responsibilities). Different legal status and purposes.
Nanny Share: Splits costs 60-75% versus sole nanny. £15/hour nanny = £450/month per family (each paying £9/hour for 12 hours/week) versus £720/month solo. Requires compatible families and schedules.
FAQs
How much does a nanny cost UK?
£10-20/hour gross or £25,000-45,000/year full-time. London £12-20/hour, regional £10-15/hour. Plus employer NI (13.8%), payroll costs (£60-240/year), pension (3%). Total employment cost 20-25% above gross salary.
Is a nanny cheaper than nursery UK?
No for one child - nanny £30,000-40,000/year versus nursery £12,000-18,000/year. For two children, costs similar. For three+ children, nanny cheaper. Nanny share (two families) offers middle ground at 60-75% solo nanny cost per family.
Do I need to pay tax on my nanny?
Yes, you are legal employer. Must operate PAYE, deduct Income Tax and NI from nanny's salary, pay employer NI (13.8%), provide payslips, submit RTI to HMRC monthly. Use payroll service (£60-240/year) or DIY. Illegal to pay cash-in-hand without tax/NI.
What is the difference between nanny and babysitter?
Nanny = regular ongoing employment (contract, PAYE, employer responsibilities). Babysitter = casual occasional care (ad-hoc, no employment contract). Nanny £10-20/hour gross plus employer costs. Babysitter £8-12/hour net cash. Different legal and tax treatment.
Can I get help with nanny costs?
Tax-Free Childcare scheme offers 20% government top-up (max £2,000/year per child, £4,000 disabled). Pay £8,000, government adds £2,000 = £10,000 total. Nanny must be Ofsted registered. Some employers offer Childcare Vouchers (legacy scheme) or workplace nurseries.
Conclusion
Nannies in UK cost £10-20/hour gross or £25,000-45,000/year full-time, plus employer National Insurance (13.8%), payroll services (£60-240/year), and pension contributions (3%) adding 20-25% to gross salary. London rates £30,000-45,000/year versus regional £25,000-35,000/year. Part-time nannies cost £400-1,000/month for 15-25 hours/week. More expensive than nursery (£12,000-18,000/year) for single child but competitive for multiple children. Nanny shares reduce costs 60-75% per family. Live-in nannies earn £300-500/week net plus accommodation worth £5,000-10,000/year. Tax-Free Childcare scheme provides 20% government contribution (max £2,000/year per child) for registered nannies. Consider childminder (£5-8/hour) or nursery for cost savings, nanny for flexibility and personalized care. Budget total employment costs £30,000-50,000/year London, £25,000-40,000/year regional for full-time qualified nanny. 👶
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Jane Smith |
| Am British, live in London (1985–present) |
