Analysis: Nanny salary survey - Record rises for nannies

With nannies' pay rising well above the rate of inflation across the whole of the UK for a third year in a row, our latest survey shows that nannies now have a real potential to earn a solid salary that compares favourably with other professions.

The average salary for daily nannies in central London has increased by £58, to £466 per week (after tax and NI has been deducted), giving an annual gross salary well above £30,000 for the first time. Live-in nannies in the same area are not far behind; they have seen an 8 per cent rise, bringing their average take-home pay to £355 a week. Healthy increases have also been reported for daily nannies outside the capital, where the average weekly salary has increased by 8.5 per cent on last year.

Professional nannies

Much has changed in the nanny industry since we published our first annual pay survey more than a decade ago. Then, most nannies were simply live-in help receiving cash in hand. Nannying in the 21st century is a career choice in its own right and not just something to keep you busy until you figure out what to do in life. As a result, we now see a much higher calibre of nannies. Many have training and experience in specialised areas ranging from child behavioural management, weaning and sleep training, to caring for children with disabilities.

And it is apparent that parents' attitudes have changed too. Despite the current climate of economic uncertainty, families are unwilling to compromise on good-quality childcare. And although the rate for daily nannies in central London has increased by 14 per cent, the survey results clearly show that it is only nannies with professional qualifications and extensive experience who can expect salaries in this range. Nannies who do not also have a first aid certificate and enhanced CRB check and keep up-to-date with the latest in child development will be disappointed if they ask for a premium pay rate. Rosemary Newton of Nannies of St James in London says, 'On the whole, the market is now much more professional, but unfortunately we still get many applications from inexperienced nannies with unrealistic expectations of their earnings potential.'

Although some resist it as an extra and possibly unnecessary expense, professional nannies will also get public liability insurance. This year's survey has seen a 10 per cent increase in the number of insured nannies. By being insured a nanny is giving a strong message to her employers that she recognises her responsibilities and values their trust.

The survey shows that 93 per cent of nannies now hold an enhanced Criminal Records Bureau check. The number of agencies willing to place a nanny without one has decreased - only 22 per cent say they would consider it.

Ofsted Childcare Register

Another sign of changing times is the new Ofsted Childcare Register (OCR), a voluntary register that allows parents some financial relief towards their childcare costs. The idea that the Government would openly accept that even nanny employers deserve some economic support would have appeared a contradiction in terms ten years ago. To be eligible to register, nannies must have an enhanced CRB check, a valid paediatric first aid certificate and public liability insurance. They must also confirm that they have the common core skills in childcare and are suitable to work with children.

The reception of the OCR has been mixed; many agencies complain about a lack of available information, and vague and conflicting advice on training requirements. There is also concern that Ofsted is failing to adequately differentiate between nannies and childminders, which may give rise to problems in the future. But the overwhelming response has been positive. 'Fantastic - a step in the right direction. Finally nannies will be respected as professionals,' says Frankie Gray of Harmony at Home Childcare in West Sussex.

'The OCR will help make nannies more affordable for more families,' says Zoe Hawkins of Scarlett's Nanny Agency in Hertfordshire. 'It also means nannies will have first aid, insurance and a CRB check. But I think it should be compulsory, as this would keep nanny standards high and could also see a decrease in unqualified, untrained childcare, which gives the nanny profession a bad name.'

Other agencies agree registration should be mandatory. Sam Kelly of Kids Matter in Leicestershire says, 'There should be a compulsory register for all qualified childcare, much like the GSCC for social workers and GMC for doctors.'

As long as the register remains voluntary, confusion over who should pay the fee for it is likely to continue. Most nannies want the parents to foot the bill, since they reap the financial benefits, whereas many parents assume a professional nanny will already be registered. Taking the initiative can pay off for nannies. As Sarah Barry of Colourful Care Nannies in London says, 'By registering themselves they are making their own contribution to help parents find employing a nanny more attractive.'

Flexible childcare

With the introduction of the OCR and rising nursery fees, a nanny no longer seems an expensive option, especially for a family with more than one child. But of course the real value isn't monetary; the simple answer to why so many families are now choosing to employ nannies is flexibility.

Look at the daily routine of a parent working in the City. The earliest you can drop a child off at most nurseries is 8am, which means that even if you live in London you won't be in the office until 9:30. You must then leave by 4:45 at the latest in order to get to the nursery in time for pick-up by 6pm. It's a stressful life even for the most Zen-like individual. Time is money for the nanny employer, and by caring for the children in their own home a nanny can also take on light housekeeping duties and shopping. If the parents are running late they have the peace of mind that their children will be fed and then go to sleep in their own beds. If a child is unwell, they can simply stay at home with the nanny.

Future trends

Of the agencies taking part in this year's survey, 40 per cent predict that salaries will continue to increase in 2008, though some suggest this may only rise in line with inflation. Any rises must also be viewed in the context of country-wide increases in the cost of living. Whatever 2008 may hold for nannies' earnings, one thing is certain - more parents now realise that a nanny can be an affordable and valuable childcare option, and they are ready to pay a professional salary.

Average Weekly net & Annual gross wages
LIVE-IN NANNIES

OUTER LONDON
YEAR-END CENTRAL LONDON & HOME COUNTIES

weekly net % change annual gross weekly net % change annual gross
2007 355 8?2 24,545 296 4?6 19,988
2006 328 4?5 22,582 283 2 19,079
2005 314 7?5 21,573 278 4 18,776
2004 292 -5 19,956 267 4 18,007
2003 308 15 21,272 257 5 17,302

YEAR-END OTHER TOWNS COUNTRYSIDE

weekly net % change annual gross weekly net % change annual gross
2007 269 4 17,908 268 3?6 17,797
2006 258 3 17,142 258 1?5 17,142
2005 250 5 16,612 254 7 16,910
2004 238 2 15,760 237 1?75 15,689
2003 234 7 15,521 233 12 15,450

DAILY NANNIES

OUTER LONDON
YEAR-END CENTRAL LONDON & HOME COUNTIES

weekly net % change annual gross weekly net % change annual gross
2007 466 14 33,179 368 6?7 25,548
2006 408 2 28,786 344 3?5 23,825
2005 399 4 28,171 332 2 22,971
2004 382 -0?5 26,937 325 2 22,514
2003 384 6 27,165 319 9 22,120

OTHER TOWNS COUNTRYSIDE

weekly net % change annual gross weekly net % change annual gross
2007 325 8?6 22,263 321 8?6 21,937
2006 299 2 20,322 296 1?5 20,095
2005 293 3 19,948 292 4?5 19,863
2004 284 3 19,335 279 2?5 18,939
2003 276 12 18,786 273 18 18,546

FURTHER INFORMATION:

- Asa Nilsdotter is the agency co-ordinator at the payroll service Nannytax (tel: 0845 226 2203).