Costs Of Raising A Child Up Two-Thirds

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.”