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Nanny salaries fall, but working hours increase

Katy Morton of Nurseryworld summarises . . .

Nanny salaries have fallen by nearly as much as five per cent over the last year, against a national average salary rise of 1.4 per cent, a new survey reveals.
Findings from the Nannytax annual survey show UK nanny salaries have generally fallen, with live-in nannies facing the brunt of cuts to their wages.

Live-in nannies in outer London and the Home Counties are the worst affected, with their annual gross income falling by £1,550 from £23,513 in 2011 to £21,963 in 2012, nearly a five per cent decrease.

In Central London, where wages tend to be higher, live-in nannies saw their annual income after tax and national insurance fall from £26,017 in 2011 to £26,870 in 2012, a loss of £853, while live-in nannies across the rest of the UK were £782 worse off a year compared to in 2011.

According to Nannytax, which surveyed 702 nannies, 1,145 families employing a nanny and 46 UK nanny agencies between December 2012 and January 2013, this is the first time since 2008 that there has been a nationally consistent decline in nanny salaries.

Daily or live-out nannies in central London also saw their annual gross income fall by £392 from £34,516 in 2011 to £34,124 in 2012.

However, the picture is slightly different outside London, with daily nannies in outer London and the Home Counties and the rest of the UK seeing a slight increase to their wages in 2012 on the previous year.
Despite a reduction to most nannies’ salaries, more nannies are having to work longer hours, with 14 per cent working over 60 hours per week, up from two per cent in 2010 and 11 per cent in 2011. According to the nanny agencies surveyed, over half (55 per cent) of nannies work 51-60 hours per week. Data from the Office of National Statistics shows that the average UK working week is 37 hours. The survey, which provides an overview of nanny working conditions, skills and salaries, also found:
  • On average, nannies in the South earn more than nannies in the North, with the highest wages in central London and the lowest in Glasgow.
  • Families are changing the way in which they find and hire a nanny, with nearly half (49 per cent) basing their decision on recommendations from friends, around double the number last year. A third would look at a nanny specific job website, up from 11.5 per cent in 2011.
  • Nanny agencies remain the most popular route for finding a nanny with 59 per cent of families using them.
  • Most nannies (46 per cent) are aged between 21 and 30, with a third (31 per cent) aged between 31 and 40.
  • Half of nannies look after two children, with a quarter (23 per cent) looking after three and 9 per cent looking after four or more.

Helen Harvey, payroll services director at Nannytax, said, 'If you have the space, a live-in nanny might well be worth considering if you’re a working family. It’s certainly more realistic than previous years with nanny salaries down, against a general national wage rise, whilst other childcare costs are on the rise. The appeal is particularly strong if you’re based in Greater London or the Home Counties where live-in nanny salaries are down 5 per cent.'

AVERAGE WEEKLY NET & ANNUAL GROSS WAGES BY AREA
LIVE-IN NANNIES
 
Central London Outer London & Home Counties
Other Areas
Year End Weekly Net % Change Annual Gross Weekly Net % Change Annual Gross Weekly Net % Change Annual Gross
2012 389 -2% 26,017 336 -4.69% 21,963 317 -2.19% 20,509
2011 397 4.28 26,870 353 4.98 23,513 324 14.60 21,291
2010 380 7.04 25,842 336 6.67 22,523 283 0.35 18,527
2009 355 2.31 23,949 315 3.62 20,934 282 0.36 18,435
2008 347 -2.25 23,525 304
2.70
20,277
 281 4.46
18,542
2007 355
8,23
24,545
296
4.60
19,988
269
4.26
17,908
2006 328
4.50
22,582
283
1.80
19,079
258
2.40
17,142
2005 314
7.50
21,573
278
4.00
18,776
252
6.00
16,761
                   
LIVE-OUT NANNIES
 
Central London Outer London & Home Counties
Other Areas
Year End Weekly Net % Change Annual Gross Weekly Net % Change Annual Gross Weekly Net % Change Annual Gross
2012 495 -0.34% 34,124 428 1.63% 28,995 389 1.42% 26,017
2011 497 1.41 34,516 421 -0.11 28,713 384 6.68 25,877
2010 490 5.15 34,127 422 11.05 29,009 360 10.09 24,335
2009 466 3.79 32,316 380 1.60 25,842 327 -2.97 21,843
2008 449 -3.65 31,203 374 1.63 25,559 337 4.33 22,766
2007 466 14.22 33,179 368 6.98 25,548 323 8.39 22,100
2006 408 2.26 28,786 344 3.61 23,825 298 1.71 20,171
2005 399 4.00 28,171 332 2.00 22,971 293 3.75 19,948

All percentages have been calculated from combined data taken from the annual Nannytax nanny index and the 46 nanny agencies, 702 nannies and 1145 nanny employers who completed the 2012 Nannytax Wages Survey.

Article originally published by Nurseryworld, January 2013.

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