Raising a child 'costs £218,000'
Parents spend around £10,382 a year, £865 a month and £28.44 a day on their child's upbringing, insurer and retirement specialist LV= said in its Cost of a Child study, as it warned that families were unlikely to see the pressure ease in the near future.
Family budgets have come under intense pressure due to high living costs and deteriorating employment conditions, while consumers' savings are failing to make real returns.
Spending on education, including school uniforms, after school clubs and university tuition fees, has seen the biggest rise from last year, with a 5.1% increase, and is also the biggest financial pressure for parents, at a cost of £71,780.
Childcare and babysitting costs amount to £62,099, making up the second biggest total bill for parents, a 2.7% rise on last year. Total food costs have shot up by 4% in a year, amounting to £18,667, while parents also shell out more than £4,000 in pocket money.
Mark Jones, LV= head of protection, said: "With the coalition Government cutting back on benefits and local services, and with university tuition fees set to rocket, the costs associated with raising a family look set to remain a pressure point for families across the UK."
Children become their most expensive during the university years, between the ages of 18 to 21, when parents spend £17,459 a year on them, a 5% rise on last year. Many parents plan to share the cost of university with their children, with 15% saying their youngsters will need to part-fund university themselves.
Spending in some areas has been cut, with hobbies and toys costing £9,248, a 4.6% drop on a year ago, while leisure and recreation has also seen a 0.6% decrease, to total £7,303.
London is the most expensive place in the UK to raise a child, costing nearly £240,000, while the North East is the cheapest, at around £202,000.
The report was compiled by the Centre for Economics and Business Research (Cebr) and also includes a study of 2,119 UK adults.