The cost of raising a child to the age of 21 has risen by 3.3% to £218,000 in the past year, according to research from LV=.
Education, including uniforms, after-school clubs and university tuition fees, is the biggest chunk of the bill and has risen 5.1% in the past year to £71,780.
Childcare costs account for the second-biggest expenditure, and this has risen by 2.7% to £62,099.
Children aged 18 to 21 are the most expensive, with costs for this age group rising by 5% in the past 12 months. With tuition fees rising to £9,000 at most universities from September, this is set to increase further. But many parents are unable to help their children pay for these fees and 21% say they don’t think their child will go to university as a result.
Mark Jones, head of protection for LV=, says: "Our report shows education costs have increased dramatically and despite financial pressures, many parents are seeking out savvy ways to ensure they can still afford their children’s higher education prospects. With tuition fees increasing this year we expect to see more parents making significant cut backs across the family budget to accommodate this."
Many parents are already looking cutting back and 67% are now buying cheaper food at the supermarket, while 35% are shopping in second-hand shops.