The average gross annual salary of nannies is now £35,984 (£13.84 per hour), according to the latest data from nanny payroll provider, Nannytax.
Salaries are rising fastest in London and the south of England where there has been a 14 per cent increase in salaries.
It finds that a full-time nanny costs families in outer London and the home counties £40,300 a year (£15.50 per hour), while in central London their annual salary is £42,848 (£16.48 per hour), according to the figures for the 2022/23 tax year (see table below).
NannyTax
According to NannyTax's annual salary Index 2022/23, based upon responses from more than 600 parents with a nanny, one in ten respondents said they were unable to access a suitable nursery place for their child.
More than half (57 per cent) said they needed care to cover school runs, teatime or bath time. Half of parents said they work long hours and almost fifth work unusual shift patterns.
According to Ofsted figures the number of childcare providers fell by 4,800 in the 12 months to March this year and the number of places dropped by 24,500.
Call to extend the funded hours to nannies
Nannytax employment expert Kirsty Wild said that more than half of families only use nannies part time to cover childcare gaps and ensure they can carry on working.
‘We think the Government could be doing far more to help families cover nanny costs and help more women return to work,' said Wild, who wants the extended ‘free’ entitlement to include care offered by nannies.
Wild called the policy ‘nonsensical’ given the ‘clear need for care outside of nurseries’ and childminders’ operating hours.’
‘We’d like to see the Government make 30 hours childcare more flexible by including nannies. A Government top-up would help more hardworking families afford nannies to plug childcare gaps’, she said.
Nannytax says that costs of nannies can be reduced through nanny share arrangements where two or more families use the same nanny.
‘Because the cost of caring for two or three children is typically no higher than caring for one, it can be cheaper for families with multiple nursery-age children to use nannies over nurseries,’ added Wild.
