According to the latest Nannytax Annual Salary Index, London-based nannies are now earning an average £50,000 gross per annum, following a record annual rise. While this reflects the true value of experienced and professional nannies, it also highlights the growing financial pressure on working families—and the continued neglect of our profession by government policymakers.
Why Are Salaries Rising?
There are several reasons behind this sharp increase, but the most obvious is the soaring cost of living in London. Housing, transport, utilities, and food costs have all surged, meaning that nannies—like everyone else—need higher salaries simply to afford to live and work in the capital.
This means that for families employing a nanny, one parent typically needs to earn over £100,000 gross per annumfor this arrangement to remain financially viable. With no meaningful financial support from the government, this puts bespoke nanny care out of reach for many.
The Rise of Part-Time Nanny Roles
We’re also seeing a noticeable rise in part-time nanny positions as families try to “mix and match” their childcare—using nurseries or childminders to access the government’s 15 or 30 funded hours, and topping up with a part-time nanny.
This might work for some families, but it creates instability for nannies, who are left scrambling to patchwork together enough hours—often across multiple households. This fractured model can also encourage an increase in “cash-in-hand” roles, undermining both employment protections and tax compliance.
What About the Rest of the UK?
Outside of London, nanny salaries have also seen significant growth:
- South East & Home Counties: £41,000 gross
- Midlands & East of England: £36,000 gross
- North of England: £32,000 gross
- Scotland, Wales & Northern Ireland: £30,000–£34,000 gross
It’s clear that nannying is being increasingly recognised as a professional career path—but still without the structural support or respect it deserves.
These Are Professional Educators, Not Babysitters
Let’s be clear: professional nannies are early years educators. They hold childcare qualifications, complete regular safeguarding and first aid training, and deliver developmental, age-appropriate care tailored to the individual needs of children and their families.
Yet despite this, nannies remain completely excluded from government early years funding and frameworks. They are treated as babysitters in the eyes of policy—overlooked, under-recognised, and unsupported.
The Government Still Isn’t Listening
The decision to exclude nanny employers from the small employer exemption in the recent National Insurance hike was especially frustrating. It shows just how out of touch current policymakers are. Families employing one nanny were penalised like big businesses—despite only trying to secure consistent care for their children.
And it doesn’t end there. Once a household earns over £100k, parents lose access to the Tax-Free Childcare scheme. So, not only do you pay more tax as you earn more—you’re also punished further by receiving no support with rising childcare costs.
With nanny salaries now rising significantly, the £100k household cap is outdated and harmful. It risks pushing families away from legitimate employment and registered care.
Our Solution: Tax Breaks and Recognition
In the National Nanny Association’s manifesto, we proposed:
- Tax breaks for families employing a professional nanny
- Inclusion of nannies in early years education frameworks
- An urgent review of the £100k childcare support cap
- Protection and promotion of Ofsted-registered nanny roles
We warned the Department for Education that the lack of support would lead to a decline in Ofsted-registered nannies and an increase in unregulated roles. Sadly, our warnings were ignored.
The Sector Needs Change—Now
Families deserve choice. Children deserve high-quality, consistent care. And nannies deserve to be recognised for what they are: dedicated professionals contributing to early education and development.
It’s time for this government to wake up and put policies in place that reflect the modern realities of family life—and the true value of the nanny profession.