How Much Does a Nanny Cost in London?

This question is the most popular enquiry we get from parents! How much does it cost to hire a nanny in London? Here are a few things to consider when researching your budget for a Nanny.

Becoming an Employer of a Nanny

A Nanny is an employee, therefore when you hire a Nanny you are becoming a domestic employer. An an employer, you will be responsible for the nanny’s full salary, tax, national insurance, pension and employers tax. This full list of costs is know as Employers Total Cost, and this is what you need to look for in tax calculators. You will also be responsible to have Employers Liability Insurance if this is not covered in your house insurance. Policies are usually around £100 for the year.

The Nanny Search

HOW you find your Nanny will also impact your costs. If you are using a Nanny agency, their fees are calculated on the nanny’s salary, usually on average around a month’s gross salary, or a percentage of the nanny’s annual salary. Childcare websites and job boards charge a monthly membership fee, averaging anything from £25-£70 per month.

Nanny Rates

What TYPE of Nanny will also effect your costs, as different types of Nannies have different rates. Research what type of nanny might suit your families’ needs. Check out our other blog on the different types of Nannies, and their average rates.

Nanny Pay Roll

The other associated cost is if you enrol a nanny pay roll company, to help with paying your nanny. Their rates on average range between £250-£300 per year. This should include HR support in setting up a contract, working out tax contributions and holiday entitlement. Some also offer employment HR advice.

Expenses for Your Nanny

Once you have hired your Nanny, expenses need to be considered. This is for children’s activities and classes, day to day petty cash, if your Nanny drives and uses her own car, mileage and wear and tear on her car will need to be compensated. This is usually around 45p per mile.

If you have any other questions or need any information on the cost of hiring a Nanny, do contact us!

Published on: Last updated: 1st December 2023

Any Questions?

We would be delighted to discuss any questions you may have! Please do not hesitate to contact us.