[Nursery World issue of January 23, 2003 NANNYTAX SURVEY OF UK NANNY WAGES
by Stephen Vahrman]
The average net pay for a daily nanny in central London rose by a further 5
per cent to £361 a week. This equates to an annual gross salary of just over
£25,000.
Taking into account the employer's National Insurance of almost £2,500 that
a working mother employing a nanny would also have to pay on this, she in turn
would need to be earning a gross salary of £37,500 just to cover the cost of
employing her nanny out of her own net earnings.
However, the average pay of a live-in nanny in central London actually fell
by 1.5 per cent to £268 net a week, or £18,000 gross a year.
On the other hand, live-in nannies in outer London and other towns around the
UK saw the greatest average increases for the year, by 7 per cent (£16,360 annual
gross) and 8 per cent (£14,151 gross) respectively, while their daily nanny
counterparts saw rises of just 3 per cent (£19,882 gross) and 5 per cent (£16,360
gross). Meanwhile in the countryside, the average annual gross income of a live-in
nanny rose by 3 per cent to £13,382, while daily nannies' rose by only 1.5 per
cent to £15,143.
The slowdown in the general economy and therefore with many parents having
to tighten their belts, and denied any tax breaks from the Government when employing
a nanny, the rising wages that nannies have expected over the past few years
have forced a growing number of parents to choose alternative childcare such
as au pairs, nurseries or childminders. Many others have opted for a nannyshare,
or employing only a part-time nanny, as a more affordable solution. Only parents
employing childminders in their own homes - an unlikely scenario - are currently
eligible for the new 'home childcarers' tax credits that come into effect this
April. But in its childcare strategy document on work-life balance published
last week, the Government still says it is 'considering how to widen the scheme
to include people who are not already childminders'.
Another consequence of the higher pay that some nannies can command nowadays,
as pointed out in last year's survey, is that parents want more for their money.
They expect more in the educational content that nannies can bring to the relationship
with their children - in some cases requiring an almost traditional governess
role - and, more controversially, in wanting their nannies to be more of a combined
nanny/housekeeper, especially while the children are at school.
This article has been sent by Bestbear.co.uk
, a unique and independent service listing recommended childcare agencies throughout
the UK, as well as offering researched information on all areas of childcare.
There is no charge for parents to use the website.