Raising a child 'costs £218,000'

ChildcareThe typical cost of raising a child to the age of 21 has risen to £218,000, with education, childcare and food making the biggest dents in parents' budgets, a report has found.

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.
The overall bill has increased by 55%, from £140,000 since the report was first published in 2003, and the latest figure is also a 3.3% rise on last year's total of £211,113.

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.
%VIRTUAL-ArticleSidebar%

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.
Read Full Story

FROM OUR PARTNERS