What the Fair Work Agency means for UK families who employ a nanny
The Fair Work Agency (FWA) is the UK’s new single body for enforcing employment rights, launched in April 2026, and it covers families who employ nannies. It can inspect, investigate and fine employers who underpay minimum wage or don’t keep proper records, with holiday pay enforcement to follow. If you pay your nanny correctly, give them their full holiday entitlement and keep records for six years, you’re already on the right track!
Employment in the UK is changing, and the government is making sure every worker gets fair treatment and the support to back it up. That's where the Fair Work Agency (FWA) comes in.
It can investigate breaches, issue civil penalties and take action against labour exploitation. A statutory advisory board guides it, made up of business, trade union and independent representatives.
It isn't just for UK businesses. The FWA also covers employment in the home, which includes families who employ nannies and other domestic staff.
At Kindred, we want to help our families stay compliant and keep up the good employment practices we know so many of you already follow. As an agency, it's our job to keep you informed about changes like this. So here's what you need to know.
What is the Fair Work Agency?
Until now, employment rights were enforced by a patchwork of different bodies. The FWA brings them together under one roof. It takes on the work of:
HMRC's National Minimum Wage enforcement team
The Employment Agency Standards Inspectorate
The Gangmasters and Labour Abuse Authority
The Office of the Director of Labour Market Enforcement
You now have one body, one set of rules and one place for workers to go if something isn't right. The FWA has real authority. It can:
Carry out inspections and investigations, without needing a formal complaint first
Issue financial penalties to employers who get it wrong
Bring employment tribunal claims on a worker's behalf
Take action on serious labour exploitation
For most families, this changes nothing day to day. The FWA’s approach focuses on helping employers who are trying to get it right, with penalties and further action reserved for those who repeatedly fall short.
What has the FWA enforced already?
Minimum wage enforcement was the FWA's first priority from day one. On 1 April 2026 the rates went up to:
National Living Wage (21 and over): £12.71 an hour
18 to 20 year olds: £10.85 an hour
16 to 17 year olds and apprentices: £8.00 an hour
Accommodation offset: £11.10 a day
Most of our families pay well above minimum wage, so why does this matter?
Because a nanny’s pay can slip below the line without anyone noticing. Watch out for:
Long days and extra hours. A salary that looks generous can fall below minimum wage once you divide it by the hours actually worked. Late finishes, early starts and unpaid "just this once" evenings can add up.
Gross vs net. Agreeing a net pay figure can cause confusion when tax and National Insurance thresholds change. We always recommend agreeing a gross salary.
Younger nannies. Make sure you're paying the right rate for their age, and move them up to the next band on their birthday.
It’s recommended to do a 6-month audit on payslips and keep in close contact with your payroll agency to ensure everything is above board.
What records do nanny employers need to keep?
From April 2026, employers must keep records of holiday and holiday pay for six years, the same as minimum wage records. We’ve created the Kindred Holiday Tracker. It's a simple way to record your nanny's entitlement, holidays taken and holiday pay, all in one place. It keeps you organised now and gives you the records you'll need when holiday pay enforcement begins
What will the Fair Work Agency enforce next?
Holiday pay is next on the Fair Work Agency’s list. The government is consulting on how this will work, and enforcement is expected from 2027. The FWA will be able to investigate holiday pay that’s been underpaid, recover what’s owed (going back up to six years), and fine employers who get it wrong. It’s also important to know that it’s your responsibility as an employer to make sure your nanny actually takes their holiday. Most nanny contracts say leave can’t be carried over or paid instead of being taken, but that only stands if you’ve given your nanny the chance to take it, encouraged them to use it, and reminded them before the holiday year ends. This is where your holiday tracker comes in handy and those holiday records should show all of this clearly. Statutory Sick Pay (SSP) will follow later. Since April 2026, SSP has been payable from the first day of sickness, rather than the fourth, and lower earners now qualify too.
It's worth getting things in order now, before holiday pay comes under the spotlight. For more information on holiday entitlement read Kindred’s recent blog - A holiday entitlement guide for Nannies and Families
How can families stay compliant?
Families who already follow good practice shouldn't be affected. Good practice is what we champion at Kindred, and it's what keeps great nannies happy and staying for the long haul.
Here's what you can do now:
Read the FWA's enforcement policy statement. It sets out how the agency will approach investigations and penalties.
Check you're meeting existing employment rights, including National Minimum Wage and holiday pay.
Review your contract. Does it reflect the hours your nanny actually works? If things have changed since they started, update it. Use our Helpful Kindred Contract Template
Get your records in order. Keep clear, accurate records of hours, pay, holiday taken and holiday pay, and keep them for six years.
Use a nanny payroll provider. Payroll providers keep on top of rate changes, pension auto enrolment and payslips, so you don't have to. Contact your Kindred consultant to receive a 20% discount on NannyTax services
Ask for help if you need it. You can contact the FWA directly at contact@fairworkagency.gov.uk, or talk to us!
Ready to hire the right nanny for your family?
We believe there’s a perfect match for every family if you ask the right questions. We pride ourselves on offering a matching service truly tailored to our nannies and families.
The bottom line
The Fair Work Agency isn't something to panic about. It's there to make sure everyone plays fair.
If you're paying your nanny properly, giving them the holiday they're entitled to and keeping good records, you're already most of the way there.
We'll keep you updated as the FWA's powers grow, especially as holiday pay and sick pay enforcement gets closer. And as always, if you're unsure about anything, from contracts and pay to holiday calculations, the Kindred team is here to help.
About Kindred Nannies
The team at Kindred Nannies has over 20 years of experience helping families find a nanny in the UK and abroad. We have assisted hundreds of nannies to find a rewarding nanny job caring for children of all ages throughout London and the surrounding areas.
