Coronavirus drives demand for nannies

The Nannytax Salary Index reveals the average cost of employing a nanny in Greater London and the Home Counties has risen by 19 per cent in the last year. Live-out nannies in Greater London and the Home Counties now earn an average of £13.26 per hour, compared to £11.15 in 2019/20.

It suggests that the increase is down to the effects of the pandemic, leading families to leave the capital and relocate to the suburbs, as well as demand for flexible childcare for working parents. A shortage of nannies due to Brexit also continues to be a factor.

Frankie Gray, founder and director of Harmony at Home, a nanny and household staff recruitment agency franchise, said they had seen a ‘surge in enquiries from new families in Greater London and the Home Counties who had relocated outside the capital due to being able to work from home because of the pandemic.’

Average salaries for nannies in Greater London and the Home Counties, image courtesy of Nannytax

About the research

The survey of nanny salary figures across the UK is carried out annually by Nannytax – the largest nanny payroll provider in the country. It is based on data from payroll records for the latest tax period, which this financial year started on 6 April 2020 and ended on 5 April 2021.

Unlike previous years, the latest Salary Index does not include live-in nannies as some live-out nannies switched to a live-in role during Coronavirus lockdowns.

Other key findings from the Nannytax Salary Index 2021/21 include:

• Part-time nannies have grown in popularity among families, in particular after-school nannies and nanny shares.
• London is the highest-earning region in the UK for live-out nannies, with those working in central London earning an average gross wage of £14.49 an hour.
• The majority of nannies have continued to work during the pandemic with just 36 per cent of Nannytax customers furloughing their nannies between April 2020 and April 2021.

Kirsty Wild, head of sales and marketing at Nannytax, said, ‘It’s no secret that a nanny can be one of the more costly childcare options. However, there are cost-saving benefits for families with more than one child when weighed up against nursery fees.’

She added, ‘At Nannytax, we have had a real close insight into the vital role nannies have played, most crucially over the course of the pandemic.

'We hope the Government will consider nannies in the on-going debates around financial support schemes for early years childcare.’

'Covid-19 caused significant shift in nannies' working hours'

BAPN – the Association for Professional Nannies, said since the onset of the pandemic, they’ve seen a significant shift in the employment patterns of nannies.

Managing director Tricia Pritchard explained, ‘Many nannies whose employers are now working from home have sought to amend their contract of employment accordingly, moving away from full-time fixed hours, to a much more flexible approach.

‘A number of nannies have moved to shorter working days, part-time, before and after-school only. Employers no longer require their nannies to cover those anti-social commute hours.’

She also said that a 'sizeable' number of nannies who lost their jobs due to Coronavirus set-up as early years/childcare consultants, which could have contributed to the shortage of nannies – highlighted by the Salary Index.

‘We’re hearing from a number of our corporate nanny agency members that they’ve got plenty of jobs but not enough nannies to fill them', added Ms Pritchard.

• Download the NannyTax Salary Index here