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Written by: Jane Preedy, 23 November 2017

The Chancellor has now made his Autumn Budget and while the newspapers bemoan stagnant economic growth and hope for more affordable housing, we have to think calmly about how the announcements affect the nanny industry.

There are two aspects of the Budget that will affect nannies, nanny employers and nanny agencies.

The National Living Wage and the National Minimum Wage will increase from April 2018

The National Living Wage for those aged 25 and over will increase from £7.50 per hour to £7.83 per hour from April 2018.

The National Minimum Wage will also increase:

  21 to 24 year olds

  18 to 20 year olds

  16 and 17 year olds


  £7.38 per hour

  £5.90 per hour

  £4.20 per hour

  £3.70 per hour

The tax-free personal allowance will rise to £11,850 from April 2018

The personal allowance – the amount people earn before they start paying income tax – will rise from £11,500 to £11,850.

This means that nannies on a gross salary agreement will see an increase in their take-home pay. For example, a nanny on an annual gross salary of 30,000 and a standard tax code will be £8.42 better off a month.

The BBC website has a calculator where you can enter a salary to see how much better off the recipient will be with the new tax-free allowance: http://www.bbc.co.uk/news/business-17442946.