The cost of raising a child has increased by almost two-thirds since 2003, according to research by LV and the Centre for Economic and Business Research (Cebr).
Figures show that raising a child from birth until the age of 21 now costs £229,251 on average, an increase of 63% over the last 12 years.
Costs have risen by an average 5.3% every year since 2003, almost double the 3.2% average rate of inflation.
According to the Cebr, the average family now spends:
- £67,586 on childcare costs
- £42,389 on childcare in the first 4 years of the child’s life
- 29% of gross income on raising a child
- 27% of their income on nurseries for children under 3 year old
- £74,319 for education at free schools and £129,030 at private schools.
Parents are making financial changes in order to cope with the rising of costs of caring for their child:
- 44% have cut routine spending over the past year
- 63% are buying cheaper items
- 49% are using discounts and vouchers.
Myles Rix, managing director of protection at LV, said:
“Having children has never been more expensive and it is important that parents take steps to secure their families financial future. We urge parents to ensure that their family has a valuable safety net such as income protection in place. Costs such as childcare and education are continuing to rise and a significant part of a family’s income is spent on children.”