Nanny state of pay puts childcare out of reach

Nannies
are receiving inflation-busting pay rises as the economy shows signs of
recovery, but this is pushing childcare out of reach of many workers, according
to a new study.

The
Nursery World/Nannytax salary survey, out today, shows that a daily nanny in
central London now earns £27,320 a year, a rise of 6 per cent, while his or her
live-in counterpart had a 15 per cent rise to £21,343. The biggest rise came
for daily nannies in the country, who earned an average £18,546, up 18 per cent.

Nanny
agencies report an upturn in placements at the end of last year, particularly
in London and the Home Counties, but the demand for part-time nannies from parents
hard-pressed to pay full-time salaries without any tax breaks continues to grow.

Some
of the main findings of the survey, published in Nursery World’s Professional
Nanny supplement and compiled by Nannytax, are:


Daily nannies are paid £27,320 in central London (up 6 per cent); £22,120 in
the Home Counties (up 9 per cent); £18,786 in other cities/towns (up 12 per
cent); and £18,546 in the country (up 18 per cent)


Live-in nannies are paid £21,343 in central London (up 15 per cent); £17,458 in
the Home Counties (up 5 per cent); £15,521 in other cities/towns (up 7 per
cent); and £15,450 in the country (up 12 per cent).


Pay increases reflect the affluent top end of the market, but many parents at
the lower end have simply dropped out because they can’t afford to pay a nanny
out of their already taxed salary, with no tax credits available. A working
couple in central London would have to earn £19,785 each just to cover the
employment costs of a daily nanny.

Editor
of Nursery World Liz Roberts said: "These rises highlight how difficult it
is for many families to afford to hire a nanny, even if that is their preferred
option. The Government must look at ways to bring paying for a nanny into the
tax credit system."

Stephen
Louis, managing director of Nannytax, said: "The survey shows two clear
trends; first that parents continue to be willing to pay for the highest
quality childcare, and second that as parents’ own work-life balance becomes
more complicated, they are asking for increasing flexibility from their
nannies. This is something that my wife and I, as parents and employers of a
nanny ourselves, are keenly aware of."

By Quentin Reade

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