Parents hit by rising nanny costs

Fewer parents can afford full-time nannies

The cost of employing a nanny has risen dramatically over the last year, according to a new survey.

Parents employing a daily nanny in rural areas can now expect to pay 18% more than a year ago - £3,251 extra.

Live-in nannies in the capital now earn an average salary of £21,343, up 15%, according to a survey by Nannytax for Nursery World magazine.

A daily nanny in the capital can expect to earn the most - typically £27,000, a 6% rise on the same period.

It means a working couple in central London, for example, now have to earn £19,785 each just to cover the employment costs of a daily nanny.

Job perks

One third of nannies are also offered other benefits with their jobs, according to the survey of 110 nanny agencies around the UK.

Typical perks of the job include the use of a car outside of working hours, or a petrol allowance if a nanny uses her own car.

Some nannies are also offered health club membership, a Christmas bonus and a mobile phone as part of their deal.

Liz Roberts, editor of Nursery World, said: "These rises highlight how difficult it is for many families to afford to hire a nanny, even if that is their preferred option.

"The government must look at ways to bring paying for a nanny into the tax credit system," she said.

Flexible nannies

Nursery World said the pay increases provided a clear sign that the economy had started to pick up.

Nanny pay rises* Daily nannies: £27,320 in central London (up 6%); £22,120 in the Home Counties (up 9%); £18,786 in other cities/towns (up 12%); and £18,546 in rural areas (up 18%) Live-in nannies: £21,343 in central London (up 15%); £17,458 in the Home Counties (up 5%); £15,521 in other cities/towns (up 7%); and £15,450 in rural areas (up 12%) *Source: Nursery World/Nannytax

The pay rises also masked the fact that an increasing number of parents were shunning help from a full-time Mary Poppins because of the expense involved, the survey found.

Instead, an increasing number of parents are working from home or part-time and looking towards a nanny for flexible support.

As many as 44% of nannies are now working part-time or in a nanny share, the survey said.

This shift in demand has led to a shortage of full-time jobs and surplus of qualified experienced nannies in the market.

Although many parents have seen their nanny costs rise over the last year, most agencies surveyed said they expect only inflationary rises this year.