New tax rules could force parents to give up their jobs next spring
Parents hiring nannies face extra £1‚100 yearly costs due to National Insurance changes coming next spring. Working families might need to choose between careers and staying home with kids
Next spring parents who hire nannies will face a tough-to-swallow tax increase due to Rachel Reevesʼs new policy: employer National Insurance will jump from 13.8pc to 15pc‚ while the payment threshold drops from £9‚100 to £5‚000
The change creates a double-whammy effect for working parents (especially those with non-standard work hours): theyʼll need to pay 21pc more in taxes. Joeli Brearley from Pregnant Then Screwed points out:
This will hit working parents hard‚ particularly mothers who still bear the brunt of childcare costs
London-based families currently paying £46‚228 for nanny services will see their yearly National Insurance costs rise from £5‚124 to £6‚184; while outside-London families paying £40‚326 will face an increase from £4‚309 to £5‚299
The situation is extra-challenging for medical professionals and other shift-workers. Jennie Bond from Nannytax explains: “For many families having a nanny isnt a luxury - its the only option for NHS doctors and nurses working rotating shifts“
Child-benefit changes add more stress to family budgets. The governments decision to drop plans for household income assessment means single parents earning £65‚000 still lose benefits‚ while dual-income parents making £59‚000 each dont. Jeremy Huntʼs previous promise to fix this by spring-26 was cancelled due to its £1.4bn cost to Treasury
