How much does
a nanny cost?
A clearer childcare budget starts with the whole picture: salary, employment costs and the support you need.
THE SHORT ANSWER
Nanny costs depend on location, experience, hours and responsibilities. Start with gross salary, then allow separately for employer costs and your agency fee.
A useful salary starting point
Nannytax’s 2026 salary guide reports average live-out nanny pay of £21.63 gross per hour in Inner London and £22.64 in Outer London and the Home Counties. Its annual figures assume 50 hours a week. These are payroll benchmarks, rather than a My Home Staff quotation or a promised rate for every vacancy.
Gross pay is the salary before the employee’s deductions. Take-home pay is the amount left afterwards. Agreeing the gross figure gives both sides a clearer starting point for discussing the role.
What might that look like each month?
| Weekly hours | Weekly gross | Annual gross | Monthly average |
|---|---|---|---|
| 20 | £440 | £22,880 | £1,906.67 |
| 40 | £880 | £45,760 | £3,813.33 |
| 50 | £1,100 | £57,200 | £4,766.67 |
Examples use 52 paid weeks and are arithmetic illustrations, not market quotations. Monthly averages are annual salary divided by 12. Additional employer costs and agency fees are excluded.
Salary is one part of your budget
Allow for employer National Insurance, pension contributions where applicable, payroll administration and appropriate insurance. Also plan for agreed expenses such as activities or travel, and any cover you may need during absence. Employee deductions already included within gross salary should not be added a second time.
Ask a payroll provider to calculate the total for your actual circumstances. A rounded budget is more useful than an apparently precise estimate built around the wrong assumptions.
Why two nanny roles can cost different amounts
Consider the children’s ages, the nanny’s relevant experience, working pattern, travel, driving and any specialist requirements. Short daily shifts or a split day can attract different expectations from a continuous working day. A combined childcare and housekeeping role needs a realistic division of time.
Start with the hours and duties you need, rather than trying to fit an extensive role around the lowest hourly figure. We can help you decide whether a nanny, afterschool nanny or nanny housekeeper is the best starting point.
Keep recruitment and payroll costs separate
Your agency fee covers the recruitment service and is separate from the nanny’s salary. Read our fees and what’s included, and ask us for a written quotation for your brief.
My Home Staff clients can ask us about our 20% Nannytax Payroll & HR service-fee offer. This discount relates to the eligible provider service, not salary, tax or pension contributions; we will explain how to access it.
Sources & further reading
Nannytax 2026 Nanny Salary Guide · GOV.UK: employing someone in your home
Sources checked 3 November 2026. Salary benchmarks retain the data period stated above. Employment guidance is general; check the current rules for your circumstances.
Let’s make it personal.
Tell us about your home and the support you have in mind. We can help you work out the right next step.