What's the minimum wage for a nanny in the UK?

From April 2026, the National Living Wage is £12.71 per hour for workers aged 21 and over. However, most professional nannies earn significantly more than this minimum. Junior nannies or those in training may start closer to the NLW, but experienced, qualified nannies typically command £15-£25+ per hour depending on location and qualifications.

Can I claim nanny costs as a tax deduction?

Nanny costs are not tax-deductible as a personal expense. However, if you're self-employed or a business owner and employ a nanny to enable you to work, you may be able to claim it as a business expense. For employed parents, the main tax relief available is Tax-Free Childcare (if eligible). Consult a tax professional for advice specific to your situation.

What should I include in a nanny contract?

Your contract should clearly outline: hours of work and days per week, gross salary and payment schedule, holiday entitlement, notice period, duties and responsibilities, child-specific needs or preferences, and any additional benefits (e.g. use of a car, phone allowance). Employment law requires certain terms to be included. Using a nanny agency or specialist template (rather than writing from scratch) helps ensure compliance.

Is it cheaper to hire a nanny from abroad?

Whilst au pairs from abroad may be cheaper, they're a different arrangement to nannies. Au pairs usually provide part-time childcare and light housework, while nannies focus on childcare. Immigration rules are also stricter. For those seeking live-in childcare at lower cost, au pairs are an option — but they require visa sponsorship and carry different legal obligations.

Do I need nanny insurance or background checks?

Background checks (DBS checks) are not legally required for home-based nannies. However, many families request them for peace of mind. This is a conversation to have during recruitment. Enhanced DBS checks cost around £50-£100, and the nanny typically arranges and pays for this. Professional indemnity insurance is optional but some nannies carry it — ask during interviews.