How Much Does a Nanny Cost?

Hiring a nanny in the UK typically costs between £13 and £20 per hour gross. But the real cost to you as an employer includes taxes, insurance, and holiday pay. Use our Cost & Salary Calculator to see the full picture in seconds.

Introduction

Hiring a nanny is a big decision – emotionally and financially. Whether you need full-time childcare or part-time help, knowing what it actually costs to employ a nanny in the UK will save you surprises later. In this guide, we’ll show you how much nannies earn, what you really pay as an employer, and what’s included in those costs.

Average Hourly Rate

In 2025, the average gross hourly rate for a nanny in the UK is between £13 and £20 per hour, depending on location, experience, and duties. That means a full-time nanny (40 hours/week) could cost £2,300–£3,500 per month gross.

Childcare in London and the South East is often more expensive than in the Midlands or North. Here’s a general guide:

Costs Beyond Salary

Hiring a nanny makes you a legal employer. That means you're responsible not only for their hourly wage – but also for several mandatory contributions. Here's a breakdown of the most common costs beyond salary:

When you legally employ a nanny in the UK, you’re expected to cover:

• Income Tax & National Insurance (NI)
  You must deduct Income Tax and employee NI from your nanny’s gross salary and pay employer NI on top. This is done through the PAYE system.
• Pension Contributions
  If your nanny earns more than £192 per week, you're legally required to set up a workplace pension and contribute around 3% of their salary.
• Paid Holiday
  Nannies are entitled to at least 5.6 weeks of paid holiday per year (pro-rated for part-time roles). This is a legal requirement.
• Statutory Sick Pay (SSP)
  If your nanny is off sick for more than three consecutive days, you may need to provide SSP – in many cases, this can be reclaimed from HMRC.
• Employer’s Liability Insurance
  You must hold valid employer’s liability insurance – it’s a legal requirement for anyone employing someone in their home.

These extras typically add 15–25% on top of your nanny’s gross salary.‍

You can also use our Nanny Cost & Salary Calculator to see your full monthly cost.

Additional Costs

Some other important (but sometimes overlooked) expenses include:

• DBS Check
  While not legally required for you as an employer, many families only hire nannies with a clear Enhanced DBS check. Most professional nannies already have one.
• Contract & Payslips
  You're legally required to provide a written employment contract and monthly payslips. These can be handled automatically with a payroll provider.
• Ofsted Registration (Optional)
  If you want to use Tax-Free Childcare or childcare vouchers, your nanny must be Ofsted registered. Not all are, so ask during the hiring process.
  ‍More about the Ofsted Registration

Optional Perks

These aren't mandatory, but many families offer them:

• Bonuses (e.g. Christmas or performance-related)
• Travel costs if your nanny uses public transport or their car for school runs
• Meals during working hours
• Gifts or extra days off for birthdays or long service

These extras help build a trusting, long-term relationship – and often improve retention.

We Handle Payroll and Paperwork for You

Hiring a nanny legally can feel like a full-time job: Registering with HMRC, calculating tax, running payroll, creating a contract, paying pension contributions, managing holidays…

That’s exactly what we take care of – start to finish.

• Registering with HMRC
• Creating a legal employment contract
• Calculating and paying tax, NI and pension
• Sending payslips and making salary payments
• Tracking holidays, sick days or maternity leave
• Verifying an Enhanced DBS check
• Ensuring valid employer’s liability insurance is in place
• Staying compliant with changing employment laws

You focus on your family. We’ll handle the paperwork.

Learn more about nanny payroll service