There’s no single answer to «how much does a nanny cost» — rates vary considerably based on hours, experience, and household needs. What we can offer is a clear picture of what actually drives the number, so you can budget realistically.

What affects the rate

• Hours and pattern: full-time, part-time, and live-in arrangements are priced differently
• Experience and qualifications: a qualified, highly experienced nanny commands more than an entry-level one
• Number and age of children: more children, or very young children, typically increase the rate
• Additional duties: driving, travel, or specific educational support can affect pricing
• Location: rates in central London tend to run higher than outer boroughs

What’s included beyond the headline salary

As an employer, the salary itself is only part of the cost. You’re also responsible for:

• Employer’s National Insurance contributions
• Statutory holiday pay (typically 5.6 weeks pro rata)
• Pension auto-enrolment contributions, where applicable
• Payroll administration, whether done yourself or through a specialist service

The advertised hourly rate is rarely the full monthly cost — budget for the whole package, not just the headline number.

Getting an accurate figure

Because rates depend so heavily on your specific situation, the most useful thing you can do is talk to us directly — we’ll give you a realistic range based on your hours, location and children’s ages, checked against current market rates rather than outdated averages.

If you employ a nanny directly, you are legally their employer — in the same way a business is an employer to its staff. That comes with specific obligations most families haven’t dealt with before.

Registering as an employer

Before your nanny’s first payday, you need to register as an employer with HMRC and set up a PAYE (Pay As You Earn) scheme. This is what allows you to deduct and report tax and National Insurance correctly.

What PAYE actually involves

• Deducting Income Tax and Employee National Insurance from your nanny’s pay
• Paying Employer’s National Insurance on top of their salary
• Submitting reports to HMRC every time you pay them (known as Real Time Information)
• Issuing payslips each pay period

Minimum wage compliance

Your nanny must be paid at least the current National Minimum Wage (or National Living Wage, depending on age) for every hour worked — including any additional hours beyond their contracted schedule. Rates change periodically, so always check the current figure on gov.uk rather than relying on a number you saw a while ago.

Doing it yourself vs using a specialist

Some families manage payroll themselves through HMRC’s free tools. Many more use a dedicated nanny payroll service, which handles registration, monthly calculations, payslips and year-end reporting for a modest monthly fee — usually worth it for the time saved and the peace of mind.

Getting payroll right isn’t just about compliance — it protects your nanny’s entitlements, and protects you if anything is ever queried.

As your nanny’s employer, their holiday and sick pay aren’t optional extras — they’re legal entitlements, the same as for any other employee in the UK.

Statutory holiday entitlement

Under the Working Time Regulations, employees are entitled to a statutory minimum of 5.6 weeks’ paid holiday per year, pro-rated for part-time hours. This can include UK bank holidays, but doesn’t have to — it’s worth agreeing explicitly in the contract whether bank holidays are included in that 5.6 weeks or given on top.

Working out pro-rata entitlement

For part-time nannies, holiday is calculated proportionally to hours worked rather than days in the office — a nanny working three days a week is still entitled to the full 5.6 weeks, just calculated against their working pattern.

Statutory Sick Pay

If your nanny is off sick and meets the eligibility criteria (broadly, earning above the Lower Earnings Limit), they’re entitled to Statutory Sick Pay for qualifying sick days, paid by you as the employer and reclaimed in part in some circumstances. Rates and thresholds are reviewed periodically, so check the current figures on gov.uk when it’s relevant.

Most disputes over holiday and sick pay come from it never being written down clearly in the first place — not from bad intentions on either side.

Put it in writing

All of this should be set out plainly in your nanny’s written contract, along with how holiday is booked and how much notice is expected — it protects you both.

UK employment law requires that employees receive a written statement of employment particulars from their first day of work. For a role as personal and trust-based as a nanny, a proper contract isn’t just a legal box to tick — it prevents the vast majority of disputes before they start.

The basics it must cover

• Job title and a clear description of duties
• Start date and, if relevant, end date or trial period
• Working hours and days, including flexibility expectations
• Pay rate, pay day, and overtime terms
• Holiday entitlement and how it’s booked
• Notice period required on both sides
• Sick pay terms

Nanny-specific clauses worth including

• Use of a personal car for the role, and mileage reimbursement
• Confidentiality regarding your family’s personal life
• Social media policy regarding photos of your children
• Expectations around additional duties (light housework, meal prep) so scope doesn’t quietly expand over time
• What happens in case of the child being unwell, or the nanny being unwell

A good contract isn’t about anticipating conflict — it’s about making sure everyday questions already have an agreed answer.

Keep it a living document

As hours, duties or pay evolve, update the contract rather than letting verbal agreements quietly replace it. A quick annual review is good practice even when nothing major has changed.

Get it checked

Templates are a reasonable starting point, but for anything beyond a straightforward part-time arrangement, it’s worth having the final version checked by a professional familiar with UK domestic employment law.