There’s no single answer to “how much does a nanny cost” — rates vary considerably based on hours, experience, and household needs. What we can offer is a clear picture of what actually drives the number, so you can budget realistically.
What affects the rate
- Hours and pattern: full-time, part-time, and live-in arrangements are priced differently
- Experience and qualifications: a qualified, highly experienced nanny commands more than an entry-level one
- Number and age of children: more children, or very young children, typically increase the rate
- Additional duties: driving, travel, or specific educational support can affect pricing
- Location: rates in central London tend to run higher than outer boroughs
Average nanny rates in London (2026)
According to the 2026 Nannytax Salary Guide, these are the average gross hourly rates (before tax and National Insurance) for nannies in and around London:
| Area / type of role | Average gross rate |
|---|---|
| Live-out nanny, inner London | £21.63 per hour |
| Live-out nanny, outer London | £21.73 per hour |
| Live-in nanny, London | £16.43 per hour |
Source: Nannytax Salary Guide 2026. Rates vary with experience, number of children, hours and duties. In a nanny share, families usually split the cost.
What’s included beyond the headline salary
As an employer, the salary itself is only part of the cost. You’re also responsible for:
- Employer’s National Insurance contributions
- Statutory holiday pay (typically 5.6 weeks pro rata)
- Pension auto-enrolment contributions, where applicable
- Payroll administration, whether done yourself or through a specialist service
The advertised hourly rate is rarely the full monthly cost — budget for the whole package, not just the headline number.
A worked example: the full annual cost
Here’s what a full-time live-out nanny in inner London could cost a family over a year in the 2026/27 tax year, based on the average rate:
Gross pay: £21.63/hour × 50 hours × 52 weeks (paid holiday included) £56,238 Employer’s National Insurance: 15% on earnings above £5,000 £7,686 Employer’s pension contribution: minimum 3% of qualifying earnings (£6,240–£50,270) £1,321 Total annual cost to your family ≈ £65,245 Families employing a nanny can’t claim the Employment Allowance, which is only available to businesses, so the employer’s National Insurance is paid in full. Most families also use a nanny payroll service to handle payslips, tax and pension.
Figures are illustrative, based on 2026/27 rates and thresholds. Your exact costs depend on your nanny’s hours, pay and tax code.
Getting an accurate figure
Because rates depend so heavily on your specific situation, the most useful thing you can do is talk to us directly — we’ll give you a realistic range based on your hours, location and children’s ages, checked against current market rates rather than outdated averages.