Is net £10-12p/h really the going rate for a nanny in London? How do most people afford it?

[Lalababy]

I am on maternity leave and heading back to work when my DS2 turns 6months - and have now started to advertise for a nanny. When I went back to work with my first DS I sent him to daycare. However, this time I though a nanny might make more sense as I have 2 children - one of whom is only 6 months and the older one goes to nursery anyway. However, it seems that all the replies have said they want between £10-£12net. I get paid £60k a year - if I pay a nanny net £10ph from my take-home pay - I barely would have £50 in my pocket. Yet I see lots of people who live around me who have a nanny. Am i missing something or am I the most underpaid person in London!!!

£10-12ph net is the going rate in London.

Most people afford it by making use of childcare vouchers, cutting back elsewhere and basically by earning enough to pay for it.

It's the cheapest option for 3+ children. It's sometimes cheaper or at least comparable for 2 children, but it depends on the cost of nursery/childminders in your area.

How much do you think the person caring for and taking full responsibility for your DC, for the majority of their waking hours, during their most formative years should be paid?

If you're looking to cut costs you could consider a live-in nanny, a nanny share or a nanny with own child.

Most people cant afford a nanny.

You're incredibly fortunate that your income will support a nanny with money left over. Many people end up in effect paying to work or not really earning anything and sending children to daycare (in order to maintain career/ etc).

£10 per hour net where I am (NW London, zone 3). I'm a GP, work for 3 days and have a nanny for two days only and it still costs over half my take home salary. If I needed her for all 3 days it wouldn't be worth working.

Crikey I Imagined a Nanny in London would get paid more than that! That doesnt seem enough!

We have an after school nanny and pay that, in term time it's ok but I'm already calculating the cost of school holidays when they arrive.

I think it depends what you mean when you say "nanny" I suspect that is correct if you are looking for a nanny with qualifications. If you are open to having someone that is willing, has some childcare experience and possibly comes is not a native English speaker you should be able to find someone for less. I have had two very successful "nannies" (in SE London Zone 2) both stayed for 4 years working ft for £9-10 gross per hour. One I found through a friend and another via gumtree.

You afford it because there is no alternative. Its scary.

Btw advertise a gross salary and if people are interested they will apply, if they are not they will not.

Gross that up for tax and NI rastamam. And bear in mind that they're being paid for 5 x 10 hours if they're full time. And they will get holidays unlike most people who charge by the hour.

But yes OP, look into tax-free vouchers - that should save you thousands a year although it does restrict you to an OFSTED registered nanny.

Jeez - while I take the point of "how much do you think someone who looks after your kids should be worth" - at the same time - from a job and pay perspective - is looking after kids really that difficult?

It is not like I am expecting the nanny to turn my kids into geniuses. All I want is someone to feed, bathe, play and make sure that the kids are happy and don't get hurt.

Surely it is kind of ridiculous that childcare is so expensive that there are people are paying to go to work just to maintain a career.

What we need is a childcare vouchers that are equivalent to what we are actually required to pay rather than just £125 a month!

Ms Foggy - I will be on the look-out for "nannies". The truth is that I have no childcare qualifications and I reckon I make an excellent carer [if I say so myself!!!]. So realistically if someone has experience / their own kids and is generally a responsive, responsible person who loves kids - that is all I really need.

'And they will get holidays unlike most people who charge by the hour.'

They will get holidays like ALL employed people. Nannies don't 'charge'. They get paid. You offer a salary and they accept. If you wish to advertise a daily/weekly/monthly/annual rate you can.

I know that, Outraged. Nannies are salaried employees which is why they get holiday pay and employers pay NI - I was contrasting with many people who charge by the hour who are self-employed - eg babysitters or agency nannies.

Is it still cheaper than 2 nursery places?

For us, two nursery places were cheaper, maybe not on the face of it but once holidays, NI, cover if nanny was sick, CCV etc were factored in.

Lots of people have one salary "cancelled" by childcare costs. But you are working for the longer term, as they get older and go to school or get free hours. And you need to view it as coming out of the joint pot (if you are with your DP) not as just your cost.

Lala are you really suggesting a subsidy of up to 27,000 pounds a year to every working parent? Including millionaires at one end and people earning 12,000 fruit picking at the other? Because that's what "childcare vouchers equivalent to what we actually pay" would mean. I think it's unlikely in the current economic climate but feel free to start your own political movement.

The new scheme coming in in the Autumn will save you 4,000 off your bill which seems like a pretty good deal to me. There are a lot of people out there, including a startling number on MN, who object to any tax breaks for childcare at all either because "they're your kids, you pay for them" or just because of class hatred aroused by the word "nanny".

You don't mention whether you have a DH/DP - we've had a nanny since I returned to work when my twins were 9 months old and I see the cost as a joint household cost, not just coming from my salary. It was still significantly cheaper than 2 nursery places which were approaching £100 per day per child. £60k is not a huge income in London tbh.

You have to bear in mind that your nanny also has to live in or near London, with living and commuting costs to match.

I totally agree op

The net wages are high because many people are not paying tax and ni. I actually had a nanny explain to me at interview how I would be able to pay 12 net rather than 10 at no extra cost to me if I put only half of her hours through nanny tax.

How about a childminder? That is what I am using now. It means you don't have the responsibility of being an employer and it is up to them to pay their taxes correctly.

Dear god, you're not really expecting the state to pay for your children when you're earning £60k per year????

ginmakesitallok i think that the fact that a parent who makes 60k can barely afford to work is extremely unfair and detrimental for the economy.

She can't "barely afford to work" though can she? It's not costing her 60grand in childcare!!

No, it costs her 60k - taxes.