Nanny employers could face yet another expense if the Government takes up proposals in last month's pension report by Lord Turner. Under the plans, an employer would contribute 3p for every pound of an employee's salary to their pension. Susanna Whyte, spokesperson for the Association of Nanny Agencies, said, 'There are concerns that this might mean that some families are unable to afford to pay a nanny fair and reasonable wages including tax, the two national insurance contributions and the pension contribution.' She added that the extra cost might make families 'less careful about who they employ'.
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