23.01.14
Cost of having children 62% higher than in 2003
The overall cost of raising a child is now at £227,266, new research suggests.
The annual Cost of a Child report, commissioned by LV= and compiled by the Centre for Economics and Business Research (CEBR), shows the cost has risen by nearly £5,000 from the previous year.
Total costs have increased by 62% since 2003, the report shows.
Rising childcare and education costs, as well as a great increase in the costs of the first year of life, have contributed to the rise. Single parents are hit hardest, and are now estimated to spend over half their annual income bringing up their children.
The report found that 71% of parents reported that they have been forced to make cuts to meet financial demands, spending an average of 28% of their annual income bringing up their children.
The most expensive places to raise a child in the UK are London, the South East and Northern Ireland.
Mark Jones, head of protection at LV= said, “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.
“We would also urge parents to think again before cutting back on insurance such as life cover or income protection. If either parent becomes unable to work or is no longer around then this type of insurance can protect you financially at a time when you most need it.”
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