February 19, 2016
The results of the NannyTax Annual Wage Survey have just been published for 2015. This is the most comprehensive and up-to-date study of its kind in the UK, and is based on data collected from 423 nannies, 771 nanny employers, and 62 nanny agencies—including Harmony at Home.
2015 has been a mixed year for nannies in the UK, with some winners and a few losers. Live-in nannies in Central London have been notable losers, experiencing a 2.56% dip in salary compared to 2014. However, outside London, average live-in nanny salaries have increased by 11.51%. In the case of live-out nannies, the salary trends have run in an almost completely opposite direction: with a steep rise in income in London and the Home Countries, and a dip of 3.46% throughout the rest of the UK. The area of greatest demand is for part time and After School nannies, resulting in a shorter average working week for live-out nannies compared to their live-in counterparts. Unsurprisingly, London tops the table for the highest paid nannies in the country, with live-out nannies earning on average £35k gross salary per year. On the downside, live-in nannies in London also work the longest hours, with an average working week of 48 hours.
Compared to 2014, there has been a significant increase in awareness, among nannies and employers, of the auto enrolment scheme for workplace pensions. By the end of 2017, all nanny employers will have to make pension schemes available to their employees, irrespective of whether they qualify for auto enrolment.
As with previous years, there was a large amount of confusion among nannies regarding their salary agreements. The majority of nanny employers prefer to negotiate salary based on gross income, whereas a significant proportion of nannies prefer to negotiate on net income. In 2015, this resulted in staggering 22% of nannies who were unaware of the nature of their agreements—i.e. gross or net! The vast majority of this confusion (83%) was among inexperienced nannies who were recruited directly by employers, rather than through an agency. At Harmony at Home we recommend that all nannies should negotiate salary based on gross income.
After a slow, but steady decline in voluntary registration with OFSTED, 2015 has seen a slight increase among nannies—up to 68.3%, compared to 64.4% in 2014. With the introduction of the Tax Free Childcare scheme in 2017, we predict that the demand for OFSTED-registered nannies is likely to increase (Childcare vouchers vs tax-free childcare). Nevertheless, current demand for OFSTED-registered nannies, among agency clients, was down 16% on 2014—with only 50% of clients expressing a preference for registration.
To see the full NannyTax report, please use the following link: NannyTax Annual Wages Survey Report
Rob Hodgkison, Harmony at Home Ltd. All Rights Reserved, 2016
Posted by Harmony at Home Head Office Team | Filed Under Expert Advice