The cost of raising a child until they are 21 stands at £218,024, the research estimates.
Education costs rose 5.1 per cent over the last year to £71,780. Over £40,000 comes from university costs and fees, and the remainder includes school uniforms, bus fares and trips.
Since the report was first carried out in 2003, education costs have risen 120 per cent.
Food spending jumped four per cent in the year, and 25 per cent since 2003, to £18,667, whilst childcare and babysitting now costs £62,099 – up 2.7 per cent on the year and 57 per cent since 2003.
In response to soaring costs, two-thirds of parents are planning to seek out more low-price items in their weekly shop this year, while one-third are increasingly selling items online and in car boot sales to raise extra cash.
“Despite an uncertain economy forcing more pressure on the budget, it’s clear parents don’t begrudge the money they spend on children, and would rather do without themselves than radically cut back on what they can provide,” said LV’s Mark Jones.