Reducing childcare costs in the credit crunch

Press Release - 1st April 2009

- Growth in nanny shares fastest in London, Midlands and Essex -

The number of nanny shares in the UK has increased 3-fold according to figures from Tinies, the UK's largest network of nanny and nursery staff agencies, and popular website NannyShare.co.uk. One in four nannies on Tinies books now works for more than one family, up from one in eight a year ago.

Registrations on NannyShare.co.uk have risen from 100 families a month in January this year to close to three hundred in March.

The increase has been greatest in London and the Midlands. NannyMatters has also seen a steady increase in the number of parents participating in nanny shares reporting that in November the number of its subscribers sharing a nanny reached 20% for the first time.

"In the current economic climate families are reviewing their childcare arrangements and looking at how they can reduce costs," said Oliver Black, director, Tinies. "Nanny shares are increasingly one of the most affordable childcare options for families, particularly where there is more than one child to look after."

Traditionally London and the South East has been the biggest employer of nannies and nanny shares with more than 50% of all nannies working for families in this area. However, interest in nanny shares is growing in other cities around the UK. Nannyshare.co.uk has reported an increase in the number of parents looking for nannyshares in Birmingham, Northampton and Essex where registrations have tripled in particular.

"Essex is a prime location for many city workers, the growth in interest in nanny shares in this area could well be another indicator of families looking to save money," continued Black.

The average cost of employing a nanny as part of a nanny share including tax and national insurance contributions is around £350-£420 a week which is then split between two families.

Working tax credits and childcare vouchers can both be used to pay for the cost of hiring an Ofsted registered nanny, even a shared nanny.

Any nanny can register with Ofsted and Tinies can help with this process. Families with a joint income of less than £66,000 per year can receive up to 90% towards the cost of hiring an Ofsted registered nanny via tax credits.

When employing a nanny, it is important that parents check that the necessary police reference checks are in place to allow that person to work with children. They should also always speak to previous employers for a reference and have a contract in place with the nanny.

Parents considering a nanny share should also consider whose home the children should be based in for the share, how the cost of the nanny should be divided (based on number of children cared for in each family) and when the nanny will take holiday. It is also not appropriate for the nanny to look after more than 3 children under the age 3 years or 4 children over the age of 3 years.