Anyone Successfully Hired a Nanny While on UC?

[JakeMichael]

Hi everyone,

I’m hoping to find someone who has successfully employed a nanny while claiming Universal Credit.

Both of my children receive DLA and have additional needs. My daughter has just started secondary school and my autistic son is struggling with nursery. I’m also pregnant, so we’re trying to set up proper childcare support for when the baby arrives.

I know UC reimburses 85% of childcare costs if the nanny is Ofsted-registered, but I’d love to speak to someone who has actually managed this process.

How did you set it up with Ofsted and UC?

Did UC base their reimbursement on gross or net pay?

Did they include employer costs like NI or pension contributions?

If you’ve done this and it worked, I’d be so grateful if you could share your experience.

Thanks so much!

Do you want a full time nanny? Do you realise how much they cost?

@JakeMichael Why do you need childcare for a newborn? Assuming you don't work or are on maternity leave?

I’m assuming @JakeMichael wants some help with her middle child and then baby

I’m not sure if uc will pay childcare costs while you are on ml

Planning for when back to work

Thank-you
This is correct

@JakeMichael Ah I see. Will you be taking the full year? Do you have a working partner?

Is a full time nanny not about £45k? I really don't think UC would pay that.

Not sure yet and yes we do

It used to be that they paid up to 85%, but it was actually less as it was 85% of a low maximum. So when DD was in nursery they would pay something like 85% of £600 a month, when the nursery cost nearly £2,000 a month. I doubt very much it will cover additional costs like employers NI, or holiday payments, but Citizens Advice may be able to help? Even one the companies for hiring nannies- they should absolutely be familiar with what’s possible.

Really depend have seen a couple about 22-26k

Use only pays for ofsted registered childcare and there is a cap, cap varies by area

@JakeMichael Please forgive me if I'm being daft, but why are you receiving UC if both you and your partner are in work?

I think the problem you face is finding a nanny to work for what you can pay. It will probably be below the current going rate in your area, so will be difficult to find someone. Being OFSTED registered means the nanny is already paying out, usually from their own pocket to stay compliant. It will probably be better to look for a childminder.

Lots of couples who work get uc

as wages are so shit

or they get help with rent /childcare

Low wage high rent high childcare and disabled children
Everyone should do a check online
We was struggling and then found out we was eligible which helps a little bit

I’ve looked into this as well have a child in SEN school who needs very specific care after school and we both work FT. Unfortunately I just couldn’t make it add up. We pay a somewhat incompetent babysitter at the moment (all done properly with NI etc). But I don’t think the government realises how very hard it is to work with a disabled child. I’m contemplating giving up work because we just can’t afford childcare that is safe for their needs and suitable. There are zero afterschool clubs for high needs children in our area, so a nanny or family are the only option.

@JakeMichael But surely not enough to hire a nanny?

Not sure tbh
We are far away from even adding it all up
We are just looking to see if anyone else has done it before making the dive

Minimum wage is around £27k for 40 hours per week. Most nannies work at least a 10 hr day, and you should expect to pay at least a few £ per hour over minimum wage for a qualified ofsted registered nanny. A very cheap nanny at £14 per hour on a 50 hour week is £36,400.

Wow didnt realise it was this much

If various disabled child elements and carers elements on the claim, the UC amount before deductions is likely to be high.

It's unfair to assume they have very little money. As per my comment above if both kids on DLA etc , the UC claim can be very high with the addition of disabled kids elements and carers elements, so they could be getting very decent wages and still qualify. Add in childcare elements and it will be even higher.

ODFOD

No one needs to be so fucking rude

So some of your questions - the nanny has to set up their own Ofsted register. You have to pay their NI and pension contributions and as they work for you, you also have to show this on their payslips (there are companies to help you like Nanny Tax). You also have to file an annual tax return and show all of this. If your nanny gets pregnant they are entitled to maternity leave and pay. You also have to pay them sick pay. As you are directly employing them you have to think about your legal benefits you get from your work and apply these to your nanny.

Sorry OP but if you are receiving UC I highly doubt you are able to pay a salary with NI and pension etc for a nanny. I would suggest a childminder or nursery.