London childcare decision guide
Nanny, au pair, childminder or nursery?
There is no single “best” childcare option. Compare where care happens, the hours you need, the number and ages of your children, group size, employer responsibilities and the real cost after any funded childcare entitlement.
Start with the care format, not the price tag.
A nanny provides childcare in your home and can be contracted around the household's required working pattern. The household will usually have employer responsibilities where it hires the nanny directly.
An au pair usually lives with the family and provides childcare in the home, but the title should not be treated as a cheap substitute for a nanny. GOV.UK states that au pairs are entitled to the National Minimum Wage or National Living Wage and the household must check the person's right to work. This is general comparison information, not immigration or employment advice; check the current GOV.UK rules before hiring.
A childminder is registered childcare, usually delivered in the childminder's own home. A nursery is group childcare delivered in a setting with several practitioners. Both can benefit from funded early-years entitlements where the family and provider meet the eligibility rules.
Nanny vs au pair vs childminder vs nursery at a glance.
Use the practical differences first. Cost only becomes meaningful once the hours and care model are comparable.
| Decision point | Nanny | Au pair | Childminder | Nursery |
|---|---|---|---|---|
| Where care happens | Your home. | Your home, usually with a live-in arrangement. | Usually the childminder's home or approved childminding premises. | Registered group setting. |
| Schedule | Contracted around the family's agreed days and hours, including early or late coverage where agreed. | Defined by the employment arrangement. A live-in arrangement should not be treated as unlimited availability. | Provider opening hours and contracted sessions; some offer school-run or holiday coverage. | Provider sessions and opening hours; late collection and closure policies vary by setting. |
| Care density | Family-specific rather than a nursery-style statutory group ratio. | Family-specific, but the label alone does not prove childcare experience or suitability. | Current England EYFS rules allow up to six children under eight per person, normally no more than three young children and usually one child under one, subject to stated exceptions. | Current England EYFS ratios are 1:3 for under-twos, 1:5 for two-year-olds and generally 1:8 or 1:13 for children aged three and over depending on staffing qualifications. |
| Cost basis | Salary for the employee plus applicable employer on-costs and any agency fee. | Employment pay plus accommodation and associated employer obligations where applicable; not a pocket-money-only comparison. | Usually a fee per child and booked hours or sessions. Funded entitlements can materially change out-of-pocket cost. | Usually a fee per child and booked sessions or days. Funded entitlements can materially change out-of-pocket cost. |
| Best starting point | You need home-based childcare tied closely to your family routine, or several children make per-child fees worth comparing with one employee. | You have a suitable live-in arrangement and have checked the employment and right-to-work rules for the individual. | You want a smaller registered setting, often with one main carer and a home-style environment. | You want a group early-years environment with fixed setting routines and peer interaction. |
The Department for Education has published updated EYFS frameworks that take effect on 1 September 2026. The core ratios quoted above are retained in those new frameworks, but families should still check the current provider rules when making a decision.
Which option gives the most flexibility?
Flexibility is not just the number of hours offered. It is how closely those hours match the household's real week.
2026 London cost evidence
What do the numbers look like in London?
The datasets are not directly interchangeable. A nanny figure is employee pay, while nursery and childminder figures are parent fees after specific funded-entitlement assumptions. An au pair must be paid according to current minimum-wage rules, so a generic “pocket money” figure would be misleading.
Nannytax's 2026 payroll data average for a live-out nanny. This is salary, not the household's total employment cost.
Coram's 2026 average for 50 hours a week where the working-parent entitlement covers 30 hours, so the family is effectively paying for 20 hours.
The comparable Coram 2026 figure for 50 hours a week after the same working-parent entitlement assumption.
Coram reports these Inner London averages for 25 hours a week for an under-two with no working-parent entitlement: nursery first, childminder second.
These figures are deliberately shown with their evidence basis. Funded childcare is normally term-time based and eligibility, stretching arrangements, deposits, consumables and provider extras can change the amount a family actually pays. Do not compare a weekly nursery fee with a nanny's hourly salary without converting both to the same coverage period and adding the relevant employment costs.
Build a weekly coverage grid before choosing.
- Mark the hours that absolutely need cover.Include commute time, early starts, late finishes, school runs and any regular evening requirements.
- Count the children using paid childcare.Per-child nursery or childminder fees can change the comparison as siblings are added. A nanny is one employee, but the role can become more demanding.
- Decide whether care needs to happen at home.Home-based routines, collections, travel and sibling coordination may favour a nanny. A separate setting may suit families who value a group environment.
- Apply funded childcare correctly.Check eligibility and how the provider applies funded hours before using a nursery or childminder headline cost in your budget.
- Compare the complete cost.For a nanny or au pair, include the household's employer obligations where they apply. For settings, include paid hours and permitted extras rather than the funded headline alone.
From our work
We define the household timetable before treating a nanny as the answer.
Our current staffing enquiry asks for the role required, working arrangement, normal days and hours, preferred start date, postcode and a household brief. For a family still comparing childcare formats, those fields are more useful than beginning with “we need a nanny”. They expose the actual coverage problem first.
We would separate the week into fixed childcare blocks, commute or work constraints, school or nursery collections, and any home-based responsibilities that must happen around the children. If a registered setting covers the required hours and funded entitlement makes the cost attractive, a nursery or childminder may be the more sensible choice. This page is not a claim that every family should employ a nanny.
The nanny route becomes more relevant when the required coverage is tied closely to the household timetable: for example, early or late hours, several children with different schedules, home-based care or regular collections and activities. At that point, the next useful step is to cost the nanny role properly rather than compare a salary headline with a subsidised setting fee.
Nationality does not decide that comparison. If a family considers a Filipino nanny through Filipino Domestic Services, the candidate still needs to be assessed as an individual against the defined childcare brief.
Questions families ask when comparing childcare.
Is a nanny more expensive than nursery in London?
Often the headline nanny salary is higher than a subsidised nursery fee for one child, but the figures are not directly comparable. Nursery fees are usually per child and funded entitlements can reduce them sharply. A nanny is one employee whose salary and employer costs cover the agreed household childcare role. Compare the same number of hours and all children before deciding.
Is an au pair a cheap alternative to a nanny?
Do not assume so. GOV.UK states that au pairs are entitled to the National Minimum Wage or National Living Wage, and the household must check right-to-work conditions. The title also does not prove equivalent childcare experience. This is general information, not employment or immigration advice; check the current GOV.UK rules for the individual arrangement.
What is the difference between a childminder and a nursery?
A childminder is registered childcare commonly provided by an individual in a home-style setting, while a nursery is group childcare delivered by a team in a registered setting. Opening hours, group size, routines, fees and availability vary, so compare actual local providers rather than relying on the label alone.
Which option is best for a baby?
There is no universal answer. Consider the care hours, desired group size, feeding and sleep routines, availability of funded childcare, commute, sibling needs and whether care must take place at home. The same family may choose a different format as the child grows.
Can a nanny be useful when a child already attends nursery?
Yes, if the family still needs home-based coverage outside nursery hours, collections, sibling coordination or holiday support. Define the uncovered hours first so the nanny role does not duplicate care the household is already paying for.
What should I compare before asking Filipino Domestic Services about a nanny?
Write down the children's ages, the exact days and hours needing cover, commute or school-run constraints, whether care must happen at home, the number of children using paid childcare and the budget after funded entitlements. Then compare that requirement with the full cost of employing a nanny.
Sources and evidence boundary.
Cost figures use 2026 market evidence and are labelled by methodology. Childcare ratios and au-pair employment points use current official guidance. The page compares formats; it does not provide personalised employment, tax or immigration advice.
If home-based childcare fits the brief, compare the nanny route properly.
Use the nanny service page for role scope and the nanny cost guide for current London pay and employer-cost planning. If the wider household role is still unclear, return to the full role chooser.