How Much Does It Really Cost to Hire a Nanny in the UK?

Why nanny costs feel confusing

You ask around, search Google and speak to a few agencies… and still get a dozen different answers.

That’s because the hourly rate is only one piece of the puzzle. Once you hire a nanny, you become an employer – which means tax, National Insurance, pension and a few other extras.

This guide keeps it simple, so you can work out a realistic monthly budget.

Step 1: Know your nanny’s gross pay

Most nannies in the UK are paid a gross hourly rate.

What you’ll agree depends on:

• Where you live (London and big cities cost more)

• Your nanny’s experience and qualifications

• Hours and duties (sole charge, school runs, extra housekeeping, SEN, etc.)

As a very broad guide, many families now pay somewhere in the £14–£20 per hour gross range for a live-out nanny, with London at the higher end. Full-time roles are usually 40–50 hours per week.

The key thing is that you agree a gross rate, not net. From that gross figure, tax and employee deductions are taken before your nanny’s take-home pay is sent.

Step 2: Add your on-costs

Once you know the gross salary, you then add your employer responsibilities. These are what most parents forget to budget for:

• Employer’s National Insurance

• Employer pension contributions (if your nanny is enrolled)

• Holiday pay (at least 5.6 weeks per year, pro-rated)

You may also have:

• Employer’s liability insurance

• Payroll service or software fees

• Agency fees if you used a nanny agency to recruit

The result is your total cost of employment – and it’s usually noticeably higher than the headline hourly rate suggests.

A quick example

Imagine you hire a nanny at £16 per hour, 40 hours per week, for the whole year.

• Gross annual salary: £16 × 40 × 52 = £33,280

• Then you add: employer NI, pension contributions and any other extras

By the time everything is included, your real annual cost will be several thousand pounds more than £33,280 – and that’s before agency fees or extras like travel, overtime or classes.

This is why a clear cost breakdown before you make an offer is so important.

Ways to make costs more manageable

If the numbers feel daunting, there are a few options that can help:

• Nanny share: Two families split the cost, while the nanny earns more overall.

• Term-time or part-time roles: Fewer hours bring the total down.

• Tight role definition: Being clear on duties avoids “scope creep” that quietly pushes the rate up.

The goal isn’t to underpay your nanny – it’s to be realistic about what you can commit to for the long term.

How Hirelo helps parents budget properly

At Hirelo, we built our platform so parents don’t have to guess.

• You see the difference between gross salary and your true employer cost.

• Payroll, tax, NI and pensions are all handled correctly.

• Your nanny is paid accurately and on time, every month.

So when you’re asking, “How much does it really cost to hire a nanny in the UK?”, the answer is: more than the hourly rate – but it doesn’t have to be confusing.

With the right tools, you can hire confidently, budget clearly and build a fair, professional relationship with the person who looks after your children.