You are now leaving the Turn2us site. Turn2us is not responsible for content on third party sites.



The cost of raising a child exceeds £230,000

  • 17/02/2016
  • Author:MartinKitara

New report finds that raising a child to 21 has risen 65% since the first survey in 2003

Mother and child

The cost of raising a child and supporting them to the age of 21 has reached over £230,000 – making it more expensive than the average semi-detached house, according to research by the Centre for Economic and Business Research (CEBR).

The research commissioned by insurance specialist Liverpool Victoria (LV=) looked at the expenses over the first 21 years of life, from food and clothing to hobbies and education.

The cost of raising a child has now increased by more than £2,500 in the last year and more than £13,000 over the last five years. In London, the cost of raising a child is now more than £250,638.

These amounts are based on a child attending a state school. Parents who send a child to private day school can expect to spend at least £373,000 until they reach the age of 21. The cost rises to just under £500,000 if the child is attending boarding school.

Parents now have to spend more than a third (38%) of their take-home pay just to be able to afford one child. More than £70,000 will be spent on childcare and £74,000 on education-related expenses, such as uniforms, school lunches, text books and school trips.

Cost of childcare rises by 78%

The most expensive years are between the ages of one and four - the cost of childcare and babysitting in particular. These amount to nearly a third (30%) of the total cost of raising a child. Childcare costs rose by 4.3% last year making this the second biggest expense after education. The cost of childcare has risen by 78% since 2003 far outstripping the rate of inflation.

While childcare costs are rapidly adding up, the research also found that six in ten (61%) of parents ask their family or friends to help, but nearly half (47%) say people are less available to pitch in than in previous years. One in seven (15%) parents say they have to pay for a babysitter more than once a week, rising to half (52%) of those in London.

LV= comment

Myles Rix of LV= said: “The cost of raising a child is at an all time high and with the price tag of childcare continuing to rise, family incomes are being stretched even further.”

Turn2us help

If you are bring up a child, there may be benefits, grants or other financial support available to you. The ‘Bringing up a child’ section of our website has information about ways you might be able to get help.

Other sections on our website you may find useful are:

If you are struggling financially, you can also use our Benefits Calculator to check your entitlement to benefits and our Grants Search to see if you are eligible for help from a charitable fund, based on your personal circumstances and needs.

The Your Situation section on our website contains information resources on benefits and grants and a Find an Adviser tool to help you find face-to-face advice in your local area.

Source: Liverpool Victoria press release: Raising a child more expensive than buying a house



 

Anything wrong with this page?

Tell us the problem

Please enter your name
Please enter a valid email address
Please enter what you were doing
Please enter what you'd like to report
Please enter the security code shown
Close

Thank you

If you would like to tell us more please visit our contact page

Close