Question 1

How much does a nanny cost in the UK in 2026?

Accepted Answer

For a live-out nanny earning £13 net per hour, 40 hours a week, the true annual employer cost is roughly £38,000-£40,000 once you add employer NI at 15%, workplace pension at 3%, and 5.6 weeks holiday pay. Tax-Free Childcare can reduce this by up to £2,000 per child per year.

Question 2

What is employer National Insurance for a nanny in 2026/27?

Accepted Answer

Employer NI is 15% on all earnings above the Secondary Threshold of £5,000 per year (£96.15 per week). For a nanny earning £30,000 gross per year, employer NI is (£30,000 - £5,000) x 15% = £3,750 per year.

Question 3

Do I have to provide a workplace pension for my nanny?

Accepted Answer

Yes, if your nanny is aged 22 or over, earns more than £10,000 per year, and works in the UK. You must auto-enrol them and contribute at least 3% of their qualifying earnings (between £6,240 and £50,270). Your nanny contributes 5%. They can opt out, but you must still offer it.

Question 4

Can I use Tax-Free Childcare to pay my nanny?

Accepted Answer

Yes. The government tops up 20p for every 80p you pay into your Tax-Free Childcare account, up to £2,000 per child per year (£4,000 for disabled children). Both parents must earn under £100,000 per year to qualify. You can use the account to pay your nanny directly.

Question 5

What is the difference between gross and net nanny pay?

Accepted Answer

Net pay is what your nanny takes home after income tax, employee NI and pension deductions. Gross pay is the full amount before deductions. Most nannies in the UK quote a net hourly rate, so you need to gross up to work out the true cost. A nanny asking for £13/hour net will cost roughly £16-17/hour gross depending on their tax code.

What does a nanny actually cost?

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