Errr, I thought Au Pairs got paid so little because they work only a few hours a day, get their board and lodging, and are here to learn English etc. It is a well known tradition isn't it?
I totally agree that proper nannies should be paid as such, with all the benefits etc that any normal worker would get. Paying below the minimum wage is unacceptable, though I guess you factor in the accommodation/food thing too if the nanny is live in.
Personally my nanny lives out, is English, and I pay her well above min. wage as I value her enormously, she has become a bit of a family retainer really, I suspect she will continue to be involved for many years to come on a p/t basis as we are paying for her to have a career change to a driving instructor, she will do that p/t and look after dd p/t when she is at nursery/school. I want that continuity.
I appreciate that not everyone can afford to pay their nannies a lot, but unless you can afford min. wage you should look for alternative IMO