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Can I pay my nanny using government funding?

For Families > Nanny Service > About our Part-Time Nanny Service

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Written by Support
Updated over 2 months ago

This help centre article has been written for the Koru Kids nanny service


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You may be able to pay your nanny using alternative funding, depending on which payment method you are looking to use. Most government funding requires that your nanny is Ofsted registered.

If your nanny is not yet Ofsted registered and you would like to register them, you can read about this here.

Using Childcare Vouchers, Childcare Grant or Tax-Free Childcare

If your nanny is Ofsted registered, we will deduct their net pay from your monthly invoice. You will pay your nanny's wages using your childcare vouchers or Tax-Free Childcare account. Any other charges (such as our service fee) will be paid to Koru Kids via direct debit.

It’s important to note that these payment methods typically can’t be used to cover additional costs like service fees, employer obligations, and advance payments, so these would need to be paid separately.

If you are using childcare grant, we will require further information to ensure we can accept this. Contact us below.

Using Universal Credit

We’ve found that using Universal Credit to pay for childcare through Koru Kids can be difficult, and requires a lot of back-and-forth with both the local authority and your nanny to be set up correctly.

The approaches and requirements for using Universal Credit for childcare costs can vary between local authorities/councils. We strongly recommend reaching out to your LA/council directly to understand the requirements and process before hiring a nanny through Koru Kids, to ensure that the costs can be covered.

Once you’ve confirmed the details with the local authority, please reach out to us with the information, and we’ll be able to advise further on next steps.

Using Funded Hours

I'm afraid we are not able to accept Funded Hours due to the way in which the payment system works. Funded Hours payments to childcare providers are often only made at the end of each term, which does not align with our payments system.

Nanny Share

We do also offer a nanny share service which is a cheaper option than hiring a nanny for sole care. If you know another family that also needs part-time care, one of our nannies can look after all the children at one of your homes. If the children get on with each other and go to the same school, these nanny shares can work brilliantly. You can find out more here.

We work hard to ensure our pricing is fair and simple. You can find out more about our pricing here.


If you choose to to pay your nanny via alternative funding, please contact us so we can support further.


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