Childcare comes in all shapes and sizes from nurseries and childminders to breakfast clubs and after school activities but regardless of which option you choose, you will undoubtedly want to know how much you can expect to pay.
If you are considering hiring a nanny as it’s the childcare option that is most fitting for your family, there are still differences in how much nannies earn depending on the type of nanny you are looking for, where in the UK you are located and which method you use to employ their services.
How much do private nannies earn?
A private nanny is a childcare specialist typically paid to look after a child or children in the family’s home. This differs from other forms of childcare where the child will attend another setting and there are normally children from other families being care for at the same time.
Due to the bespoke and individualised nature of nanny childcare, it can be a worry that they will be unaffordable, but this doesn’t have to be the case. There are different types of nannies such as part-time, live in and live out, all of which command different salaries. So that you can make an informed decision about the childcare for your family and find out the answer to ‘How much do nannies earn per hour?’, we have broken down the average costs for different types of nannies in the UK:
As the name suggests, a part-time nanny is employed for a portion of the week. This could be for set days or be daily for a set time such as to bridge the gap between your child finishing school and you getting home from work.
How Much Does a Part-Time Nanny Cost?
On average, you can expect to pay a part-time nanny:
- £18 per hour if you are based in London and your nanny is live-out
- £14 per hour if you are based in London and your nanny is live-in
- £400-£470 per week for 25 hours childcare (inclusive of tax and NI contributions)
A live-in nanny resides in the family home for the duration of their employment and as well as childcare, they usually also help with small household chores such as laundry and cooking. They often become another member of the family and due to living in your home, they offer flexibility for childcare that live-out nannies do not.
How Much Does a Live-In Nanny Cost?
Based on a 50-hour working week, the approximate cost of a live-in nanny is as follows:
- £500 - £650 gross per week excluding tax, national insurance, accommodation, and board
- In London, this rises slightly to a starting point of £600 gross per week
Live Out Nannies
A live-out nanny undertakes much of the same duties as a live-in nanny would do with the main difference being that they arrive at your home at a set time each day and leave in the evening.
How Much Does a Live-Out Nanny Cost?
Based on 50 hours per week, the average cost of a live-out nanny is:
- £16 - £20 an hour gross, depending on location and experience
- This is £800 to £1,000 gross per week (with employer's NI and pension on top)
A nanny-housekeeper will provide childcare and housekeeping duties according to any arrangement made. This could be that they look after your children before and after school but undertake household cleaning and tidying during the rest of the day or they may provide care for older children and teenagers who do not require as much supervision so that housekeeping is the main focus.
How Much Does a Nanny-Housekeeper Cost?
Costs for a nanny-housekeeper will vary according to hours worked and whether they are live-in or live-out:
- The salary for live-in nanny housekeepers ranges from £500 to £820 gross per week
- Live-out nanny housekeepers can expect to earn £16 to £21 gross per hour
- Salary may be higher if they are required to drive children to and from school
Au Pairs are often mentioned when speaking about nannies but there are distinct and important differences between the two. An au pair is usually a young person aged between 18 and 30 who comes from a foreign country and provides childcare and light housekeeping in exchange for accommodation, board, and a nominal fee. They aren’t childcare specialists and will potentially have no previous childcare experience.
How Much Does an Au Pair Cost?
In the UK, the average cost for an au pair is:
- £100 per week
- Accommodation and board
Other Considerations About The Cost Of a Nanny
Now armed with approximate costs for nannies in the UK, there are still some other key points to consider before you make your final decision.
Employer Tax, National Insurance and Pension Contributions
When a nanny earns over £123 per week (as at tax year 2022 / 2023), you must register as their employer if not using an agency or nanny specialist. There are legal ramifications for not doing so and you must also pay your nanny’s tax, NI and pension on their behalf from their gross salary. In addition, as their employer, you must also pay NI and pension contributions on top so it’s worth being aware that their gross salary is not the final cost to you.
The experience of a nanny does contribute to their salary. Nannies with more than three years’ experience will generally cost more than nannies who have just started their career. You’ll need to think carefully about what experience and skills you want your nanny to have and how this will affect what you are likely to pay them.
Cover For When Your Nanny Is Sick
If your nanny is unwell for any period, as their employer you will be responsible for managing sick pay and finding a temporary replacement until they can return to work. If your nanny qualifies and is sick for longer than four days, then they will be entitled to Statutory Sick Pay.
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