The average salary of a full-time nanny in London has passed the £50,000 mark for the first time, a new survey reveals today.
Families can now expect to pay £50,726 per year for a full-time nanny, or £19.51 per hour after the average gross annual salary of a London nanny surged by a record £4.500 in one year.
Latest figures for the 24/25 tax year 24/25 from nanny payroll provider Nannytax show nannies in the capital have enjoyed a record 9.7% pay rise, equivalent to £4,498 a year for a nanny working full-time, 50 hours per week. Over the past five years, the average wage of a London nanny has increased by almost half.
Families living in the Home Counties can now expect to pay £17.86 per hour or £46,436 annual salary, a rise of 5.5% or £2,418 on the previous tax year.
Just over half of families who hire nannies do so on a part-time basis – for 21 hours per week on average – with many plugging childcare gaps before and after school. Hiring a nanny for 21 hours per week costs, on average, £410 per week in London or £331 per week in the rest of the UK.
Kirsty Wild, nanny employment expert at Nannytax said “Increasingly, families are hiring nannies willing to take on additional responsibilities – such as PA duties, SEN support or tutoring – in a hybrid role that commands a higher price. Agencies report this premium is around 20%. But there is a high price tag on reliable, consistent and flexible nanny care in general.
“Despite the vital role they play in the UK’s childcare landscape, nannies are not included in the 30 hours free childcare scheme, which puts them out of reach for many families who would benefit hugely from working with a nanny. These include parents who work shifts or long hours, as well as children with complex care needs or who require language support.
“Of course, for families on waiting lists for nurseries, or without childcare provision nearby, hiring a nanny may be the only option, so for those looking to reduce childcare costs nanny shares are well worth considering. The families involved pay at least minimum wage to the same nanny, which is cheaper than the going rate.
“Eligible working parents can pay Ofsted-registered nannies via the underused Tax-Free Childcare scheme. However, three quarters of nannies are not on this register. So, families who want to use this scheme might benefit from paying their nanny’s annual Ofsted registration fee.
“Families employing nannies should 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, and adding a nanny to a company’s payroll, which isn’t allowed.”
