Cost of raising a child reaches £229,250

22 January 2015

The cost of raising a child to the age of 21 has hit an all-time high of £229,251, up 3% from £222,458 this time last year, according to insurer LV=.

It says the cost has risen by almost twice the rate of annual inflation over the last 12 years, with parents now spending nearly a third (29%) of their annual household income on raising a child.

The largest cost is education (including school uniforms, books, stationary, trips, lunch and university fees), which accounts for an average of £74,319 per child for non-fee paying school. Parents that send their children to private school must find an additional £129,030.

LV= says education costs have rocketed by 128% since it commissioned the first report in 2003.

The second largest cost is childcare, which accounts for an average of £67,586, rising to £81,276 in London and is at its peak in the first four years of a child's life, when nursery fees must be paid and/or childminders required.

Pressure point

Myles Rix, managing director of protection at LV=, said: "Having children has never been more expensive and, with costs such as childcare and education continuing to rise, for many families across the UK this is set to remain a pressure point.

"No parent wants their child to go without and given a significant chunk of a family's income is spent on children, it is important that parents take steps to secure their household's financial future."

Other costs faced by parents include food (£19,517), hobbies and toys (£9,377), holidays (£16,675), clothing (£10,942), leisure and recreation (£7,486), and pocket money (£4,603).

Regionally, London and the South East of England remain the most expensive areas to raise a family - at a cost of £249,763 and £243,282 respectively. Yorkshire & Humber and Wales are the cheapest, at a respective £213,717 and £214,162.

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