Nannytax’s annual report reveals a full-time, live out nanny working 50 hours per week, now earns £4,342 more than last year.
According to the figures, the yearly salary for nannies across the UK, excluding London, is now £40,326, equivalent to £3,361 per month – a 12 per cent increase on the previous tax year.
In London alone, nannies have seen annual pay increases of 8 per cent. A full-time, live-out nanny now costs parents an average of £3,852 a month or £46,228 per year.
Nannytax attributes the rise in wages to ‘accelerated nursery closures and return to office mandates for parents, increasing demand.’
It also says the demand for nannies who provide dual roles, such as serving as a tutor, housekeeper, sports instructor or PA as well as a nanny, is driving up wages.
The data is 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.
'The struggle to secure nursery places is pushing more parents to consider nannies as an alternative.'
Kirsty Wild, nanny employment expert at Nannytax, explained, ‘We are seeing rising demand for part-time nannies who can do wrap-around care as more parents returning to offices find they can’t fit pick-ups and drop-offs around their commutes. Meanwhile, the struggle to secure nursery places is pushing more parents to consider nannies as an alternative.’
She added, ‘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.’
