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Latest News

Nanny state of pay puts childcare out of reach

by Personnel Today 22 Jan 2004
by Personnel Today 22 Jan 2004

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."

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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

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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