The Nannytax annual salary survey for 2012 showed a nearly 5% drop in nanny wages in some areas, and the greatest increase was 1.6% on last year, but the cost of other childcare has risen by more than 6% according to the Daycare Trust’s annual report over the same period.
Although it might not be good news on an individual level for nannies, for parents there is a silver lining. Live in nannies are now the most affordable option when compared to other forms of childcare. Last year we indicated that nannies were the most economic form of childcare for families with 3 or more children. It seems this year nannies may be more affordable for some families with 2 children than a nursery place, with the average full time nursery place coming in at £11,000 (£22,000 for 2 children) and a live in nanny in Outer London and the Home Counties earning £21,963 gross and a live in nanny in the rest of the UK earning an average of £20,509. Nannies are also working longer hours, with 14% working more than 60 hours a week. This makes them ideal for families with long working hours or long commutes.
Childminders and nurseries are being forced by economic circumstances to raise their fees. Increasing bills for utilities and food, the cost of compulsory training and the time taken to update paperwork in line with OFSTED’s requirements are all taking their toll. In contrast nanny salaries have to respond to the national trend for salaries, as they depend on the amount parents have free to spend on childcare. Squeezed budgets from hikes in the cost of living mean lower salaries or fewer nanny jobs.
Whichever way you spin it, childcare in the UK still costs parents too much, and doesn’t pay providers enough, nannies included. Being expected to work more hours for less money isn’t a sign of a healthy economy even if it is happening to almost everyone. But what’s the answer?
Some solutions look at the cost of childcare in general – increasing the amount of childcare vouchers which can be offset against tax, or enabling parents to claim childcare against their tax return. Others wouldn’t apply to nannies, unless changes were made, such as ring-fencing funding or paying providers directly.
There are two other solutions would decrease the costs associated with employing a nanny. For parents eligible for pre-school funding enabling appropriately registered nannies to deliver those hours would make a big difference. Another would be to provide tax relief on the costs associated with employing a nanny, such as Employer’s National Insurance.
Employing a nanny is a choice, but it’s sometimes the only form of childcare that meets parents’ requirements. Even if there are other options, it’s a choice that parents should be free to make and these figures indicate that a nanny may be an option open to more people than ever.
bapn 