Raising a child now costs over a quarter of a million pounds, according to research released today by insurer LV=. The price of raising a child has risen from £222,458 last year to £227,266 today.
The annual "Cost of a Child" report found that education and child care remain the largest items of expenditure. Single parents continue to be the hardest pressed by the rising overall cost of goods and services. In 10 years the price of these goods has increased by a hefty 33.6 per cent.
The escalation in costs over the past year was largely driven by a seven per cent hike in the price of child care for children under ones.
Parents now spend 28 per cent of their annual income providing for their child - a figure that rises to 54 per cent for one parent families.
LV= says parents are being particularly squeezed by changes to the child benefit system. The research found that one in four mums have gone back to work earlier than they wanted to and almost one in five work more hours due to the the changes.
Mark Jones, head of protection at LV= commented:
Having children has never been more expensive. The costs associated with raising a family are set to remain a pressure point for families across the UK but seeing the cost of raising a child in its entirety can help people think about how to secure their family’s financial future should anything unexpected happen.