You’ve looked over your childcare options, and you’re pretty sure getting a nanny is the best choice for your family. The thing is, it’s not cheap. According to Money Helper, a full-time daily nanny in the UK costs an average of £500–£800 a week. This is considerably more expensive than day nursery, which costs around £263 a week. The higher price tag leaves some families asking: How can I make hiring a nanny more affordable?
How much you pay for a nanny depends on a wide variety of factors, some of which can provide opportunities for negotiating lower rates or saving money elsewhere. And nanny contracts are highly customisable, so there are many ways to tailor an arrangement that works for everyone.
Here are a few ways you can save money when hiring a nanny.
1. Share a nanny
One way families can save costs on nanny services is to pair up with another family and share a nanny. Nanny sharing allow families to enjoy a lot of the benefits of having a nanny—personalised, attentive, home-based childcare—without having to pay the full price for one.
Nanny sharing is a popular tactic among parents struggling to find affordable childcare in their area, or for those who can’t afford to hire their own nanny.
However, it’s worth noting that sharing a nanny doesn’t split the price of the nanny in half. Nanny-share setups are a lot more work for the nanny. They essentially have two different employers, and that can complicate things. As a result, nannies tend to charge more in nanny-share setups than with individual families. But because families split the costs, it still ends up being less than if they had hired their own nanny.
2. Consider offering additional benefits in exchange for lower pay rates
Work with your nanny to negotiate a lower rate in exchange for additional employment benefits—such as more paid time off, or allowing the nanny to bring their own child or grandchild to work with them. If you choose to go down this path, however, you must make sure that the nanny is receiving everything they’re legally entitled to. It’s a good idea to consult the relevant government regulations to make sure everything is by the books, and that your nanny isn’t being underpaid.
3. Choose a nanny with less experience or fewer qualifications
Nannies with university degrees, other certificates or specialised training are able to charge more for their services. But nannies who don’t have a long list of degrees can still provide high-quality care. Families should ask themselves what their most important qualifications are in a nanny and determine what they are willing to pay more for, as well as what they can live without. For example, you may be willing to hire a student nanny to reduce costs.
4. Take advantage of tax benefits
The UK government offers tax-free childcare benefits, as well as tax credits to help parents and guardians with the costs of childcare if certain criteria are met (an approved childcare provider, in-person care, etc). It’s worth consulting the government websites to find out if you’re eligible for any of these benefits.
5. Adjust your schedule
If you really love a nanny but aren’t sure you can pay their requested rate, you may need to get creative on your end. If the nanny is open to fewer hours and there’s flexibility on your end, work with your partner, employer or a family member to adjust schedules so you can reduce the number of hours your nanny will be needed.
Maybe you and your partner offset your work schedules by a few hours in the morning and in the late afternoon, so one of you leaves earlier and comes home earlier, while the other leaves later and comes home later. Or maybe a family member can do the few hours after school and before you arrive home from work. Arrangements like these can trim two to four hours a day off the hours you need childcare.
6. Consolidate outsourcing
Another common way families work to lower costs overall is to look at what other services they may be already paying for, such as house cleaning, and ask the nanny if they are comfortable taking on some of those responsibilities for an additional fee. Consolidating what families outsource into a single role—such as a nanny-housekeeper or simply a “household manager”—can help reduce costs overall.
This situation works best when the children’s schedules have breaks during the day in which the nanny can focus on other tasks, such as when kids go to school or take long naps.
Potential services some families outsource that could be offered to a nanny include:
- Meal prep
- House cleaning
- Dog walking
- Tutoring
- Grocery shopping
Think outside the box to trim costs where you can. Every little bit counts.