To obtain the value of childcare output, the number of hours of childcare required (see Volume) is multiplied by the wage rate of a live-in nanny. The source of this information is the Professional Nanny/Nannytax Annual Survey. The wage rates have been adjusted to take into account payment in kind (for accommodation and food) and to obtain a rate per child.

For further details see Chapter 6 of the HHSA Methodology.

The value of the output of childcare should be interpreted with caution, bearing in mind its sensitivity to some of the assumptions made. See Sensitivity Analysis for results using different wage rates.