Fees not competitive

[ViewsAreMine]

We're trying to decide between choosing a nanny and a childminder. We've always thought a childminder would be cheaper. However, we're being charged per hour for each child (2 of them). When we crunch the figures, nanny fees which are currently £12/13 gross an hour come out cheaper. Does this mean childminder only works if you've got just the one charge?

One more question, are childminders classed as self-employed?

Yes, CMs are self employed.

Yes, for multiple DC a nanny can work out much the same price it dheaper. But remember that with a nanny, you need to supply all incidental expenses (her food, will she be taking them out and about?) and ha you included all the costs of employment (payroll, or are you doing it yourself? And employer pension contributions, which people sometimes forget about but which are are required)

Your nanny sounds too cheap tbh. A nannies should cost £30k plus the cost of food / expenses / fuel etc (with experience, qualifications etc) and you pay all expenses on top. A lot of au pairs or housekeeper-babysitters market themselves as nannies but they are not. So from that perspective the childminder would he expensive even when comparing just the cost if one child.

£12-£13 gross for a nanny in my area is quite typical. Childminder's though are around £6, so with two children a childminder is lower cost. Nannies tend to be lower cost when there are three or more children involved.

On top of those figures for the nanny you need to include pension contributions, consider whether you pay sick leave. You also need to take into account how much it will cost you to cover them if they are sick (although this is the same with a CM).
You are also liable for maternity cover if they get pregnant, and you need to facilitate medical appointments re any pregnancy. This can be reclaimed but it can take some time.

The advantage is less hassle to drop off and pick up, some tidying and housework re children can be done - ie changing their bedding etc.

Have you costed employers national insurance, pension, nanny payroll, admittance to all activities, transport and mobile contract for nanny plus utilities and food as your kids will be at home all day?

Most childminders change by the hour and some for the day per child. You may get lucky and be offered a slight sibling discount but it’s not something everyone offers as siblings are hard work and if they leave that’s then two spaces to fill. Childminders are self employed and usually don’t charge for there sickness, holiday, but everyone is different but all will charge for the child’s sickness and holiday. Usually childminders are cheaper compared to a nursery and nanny’s are cheaper if you have more than one child but if they work solely for you, you will have to pay them holiday, maternity, sickness, pensions and NI. Nannies don’t have to be registered with Ofsted so if they are not then you will not be able to use childcare vouchers, tax free vouchers and they also can not offer the funded hours at all.

There is a big difference between the way that childminders and nannies work

Childminders - are self-employed and their contacts will differ slightly regarding things like food/trips

Nannies are your employee and the hourly salary is only the starting point of the costs involved. On top of the salary you will need to pay for

• a kitty for activities
• mileage costs if nanny is driving your child in her car
• nanny's food when on duty
• payroll costs to pay over nanny's tax/NI
• employer costs such as NI, annual paid holidays, sick pay, maternity pay etc

Go nanny!!! Seriously your life will be so much easier

@Teddybear45.

You’ve said that without knowing where the OP lives

In any event, I’m in a very affluent SE town and £13 an hour nanny is average

If cm us self employed then are they supposed to get holiday pay?

Childminders set their own rates including holiday charges. Some charge when they take a holiday but not if you take holiday, some charge 50/50, everyone is different