Pressures of Brexit see rise in UK nanny childcare costs

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Research conducted by Nannytax finds the average cost of hiring a nanny has risen by 8% since 2017/18.  The annual gross salary for Live-out nannies in Yorkshire and the Humber has risen by 13% since last year from £25,584 to £28,860.

Nannies represent a sizeable, well-trained and well-paid portion of the UK childcare workforce providing individual and quality care. The challenging economic and political climate is affecting employment in many sectors and the implications around Brexit have led to a skills shortage in the childcare sector with the reduction of EU workers pushing up employment costs along with the rise of the minimum wage.

There were 10,000 providers on 31 December 2018, down by 600 since 31 August 2018. Although the numbers of home childcarers have fluctuated over time, they are now 12% lower than they were on 31 August 2015. (Source:Ofsted).   

Nannytax, the UK market leader in nanny payroll services, has released its annual wages report, the Nannytax Nanny Salary Index 2018/19 which has revealed an overall increase in salaries for nannies across the country, with the average gross salary for Live-out nannies in London and the rest of the UK increasing by 8%. Similarly, the average salary for Live-in nannies has increased by 9% in London and the rest of the UK has seen an 8% increase.

Key Findings

Live-out nannies in London earn an average gross wage of £13.35 per hour, an 8.1% increase from 2017. This is the highest paying region for live-out nannies across the country.

Live-out nannies working in the rest of the UK earn an average gross of £10.96 per hour, an increase of 8.4% from our 2017 report.

Live-in nannies, working outside of London, earn an average gross figure £8.32, a 7.7% increase from 2017.

Outside of London, the South East of England is the highest paid area for Live-in nannies, who earn an average gross wage of £9.76 per hour, followed by East Midlands at £9.74 per hour.  The North West is the lowest with an average gross wage of £8.42 per hour, followed by the West Midlands at £8.90 per hour. Live-in nannies in Yorkshire and the Humber receive £9.57 per hour.

Outside of London, the South East is also the highest paid area for Live-out nannies, who earn an average gross wage of £12.45 per hour, followed by the East of England at £11.67 per hour and the South West at £11.51 per hour. The lowest is in the North West at £10.11 per hour, followed by the North East at £10.26 per hour. Live-out nannies in Yorkshire and the Humber receive £11.10.

Live-out nannies salaries have risen significantly across most regions since 2017/18 with Scotland and the South East both seeing a rise of 17%. (South East salaries rising from £27,762 to £32,370 and Scotland £25,303 to £29,505). The only exception is in the North West where salaries have reduced by 9% (£29,790 dropping to £26,296). However, the decrease in salary in the North West brings the region’s nannies back to what has been the UK average salary paid in previous years with the rest of the UK seeing a significant rise in pay in 2018/19.

Kirsty Wild, Head of Sales and Marketing at Nannytax, said: “With childcare costs at an all-time high choosing a nanny is not the cheapest option for working parents but hiring a qualified professional brings many rewards and individual care. With this expertise comes higher costs and salaries have also risen amid a Brexit fueled skills shortage. This rise in wages is of course good news for those nannies in employment but is another financial burden for working parents during a time of economic uncertainty.”

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