Will it be more cost effective to hire a nanny for 2 children rather than send them to nursery?

[2point4kids]

I live in Ipswich. Have just worked out that to send my 2 children to nursery when I go back to work in October (they will be just 3 yr and 6 mo) will cost me approx £1650 per month. (5 days a week, 8am to 6pm)
I have NO idea how much nannies charge and was wondering if someone could give me a ball park idea so I can compare the 2 options...

Also, any ideas how I would look into nannies in my local area?

Thanks very much in advance!

Ooh I live in Colchester - Most nanies earn at least £300 net per week for those hours so in theory it would be cheaper also - if they were ill you wouldnt have to take time of work - if you needed to work later then you could without needing th rush back for nursery closing time. Where in Ipswich are you?

on the other hand, you would need to take time off if the nanny was ill or went to the dentist or whatever.

I think nursery can be useful if you have absolutely no backup care eg relatives nearby etc...

I am very near to the centre of Ipswich - IP2 (a 20 min walk into town)

Is that a live out average salary?
So if I am doing my maths right, the total gross salary that i would need to pay out is about 20k per annum?

I'm sorry if it is impolite to talk about salaries so bluntly - just trying to work out practicalities of going back to work

Both good points about taking time off, thanks.
I have MIL who lives a shortish drive away who would be happy to be called on in a back up situation, so that should be ok with either option I think...

We were in the same situation; if the nursery is fab and the kids like it and it is convenient, that's great. We couldn't cope with the drop-off and pick-ups from 2 separate nursery sites (diiferent age groups) and the struggle to be there by 6pm was wearing me down.
A nanny works out for us about £500 pcm more, but the flexibility and peace of mind is tons better. The baby gets 1to1 attention now the eldest is at school...and god knows how we'd have coped with school hours without a nanny!!
Dedicated companies such a PAYE for nannies can take care of payroll for you for little over £100 pa, and you can pay the nanny partly in childcare vouchers if your employer(s) offer them. Though nanny has to get Ofsted regfistered to receive pay in vouchers, which is a total bureaucratic balls-up and takes months.

Sorry - more questions!

Would I need to hire an accountant to work out the tax and NI etc for the nanny?

And how does it work with a live in nanny? What is the average salary and what else would I be expected to provide... all meals/food? own room with en suite I presume.. what else?

Sorry for all the questions! I hope that someone can help!

x post!

Oh thanks for that info about payroll, that sounds nice and easy and for 100 pa, well worth it I'd imagine.

Good point about childcare vouchers as well, will definitely look into those!

Is it a fixed salary whether the older child is at school or on holidays? My DS1 will be just 3 when I go back so will be starting pre-school a couple of months after...

Depending on age/experience etc I think the going rate for a live out full time nanny 8-6 would be somewhere in the region of £19-24k. Think you'd be lucky to get someone much below that unless possibly a first timer who has previously worked in a nursery, where salaries are so much lower that even a jump to £18k is a lot - but then you are gambling that they would adjust to working alone rather than in a group.

Activities for the kids would come on top.

You also need to factor in a weekly budget for activities be they outside the home, possibly requiring travel costs and admission fees or at home stuff like craft materials and baking plus meals at home that would have been provided by the nursery.

It can add up to a fair old amount if your nanny likes to get out and about and has the children making lots of stuff.

I'd say it's the same salary, regardless of how long a child is attending pre-school/school.

1600 gross works out about 285 nett so if you can find a nanny in ipswich who will work 5days for that, then might be worth employing a nanny.

good points, nannies will still look after children if ill, and are generally more flexible if you have to work late/get stuck in traffic etc

bad points - as jura said nannies do like to go out and about, esp in holidays, though some like me do try and limit BIG trips and try to get vouchers,make picnic lunch etc to cut down costs - also petrol costs can be high if you dont previde a car

good points - nurseries, once you have paid out money, you shouldnt get any hidden/extra costs so easier to budget

bad points - if ill, nurseries dont normally take children

a nanny will be paid the same whether one child at school or not, as they are still on call

childcare vouchers are a godsend, nurseries will accept them, and if your nanny is registered(cost to you£100) then you can use them with her as well - which really help with the costs

have you thought about using a cm,as possibly cheaper