A Solution to Over-Population

The Cost of Having a Family

 

The cost of raising a child has hit an all-time high, according to a new report.  Figures from insurer LV='s annual Cost of a Child Report show that the cost of a bringing a child up to the age of 21 has reached £222,458 - more than £4,000 higher than last year and up £82,000 on ten years ago.

The insurer estimates that this is set to reach £350,000 by 2023 if costs continue to increase at the same rate. 

The report will be a further blow for hard-working families as cash-strapped parents continue to struggle with rising household bills and wage freezes and cuts to child benefit. The right to receive the payments, worth £20.30 a week for the first child and £13.40 for further children, was removed earlier this month from households with one earner on a salary of more than £60,000 and reduced for families where one member is paid more than £50,000. 

Education and childcare remains the biggest expenditure for parents. The cost of education, including uniforms, after school clubs and university costs, has shot up from £32,593 to £72,832 per child in the last ten years.   Childcare costs have also rocketed, up from £39,613 in 2003 to £63,738 today. 

The rising cost of nursery care is high on the agenda for the Coalition. But it recently backed away from plans to give every parent with children under five tax relief worth about £2,000 per child. It had been billed as the principal policy to emerge from the Coalition’s Mid-Term Review. 

The cost of electronic gadgets has presented a new financial strain on family budgets, with annual spend increasing to £302, as have holidays, up from £11,458 a decade ago to £16,195. However, the increase on each is likely to be due to families committing more of their discretionary spending rather than being just down to price rises. 

“The cost of raising a child continues to soar and is now at a ten year high,” said Mark Jones, head of protection at LV=. 

“Everyone wants the best for their children, but the rising cost of living is pushing parent’s finances to the limit. There seems to be no sign of this trend reversing. If the costs associated with bringing up children continue to rise at the same pace, parents could face a bill of over £350,000 in ten years’ time.” 

Over the last ten years, London (£239,123), the South East (£237,233) and the East of England (£233,363) have remained the three most expensive places to raise children. 

While families in the South West have seen the biggest hike in costs, now paying £100,077 more per child than they were ten years ago. 

Category	Ten years ago: 2003	Last year: 2012	This year: 2013	% difference from last year	% difference from 2003
Education*	£32,593	£71,780	£72,832	1.5%	123.5%
Childcare & babysitting	£39,613	£62,099	£63,738	2.6%	60.9%
Food	£14,918	£18,667	£19,270	3.2%	29.2%
Clothing	£11,360	£10,781	£10,770	-0.1%	-5.2%
Holidays	£11,458	£15,532	£16,195	4.3%	41.3%
Hobbies & toys	£8,861	£9,248	£9,316	0.7%	5.1%
Leisure and recreation	£6,366	£7,303	£7,353	0.7%	15.5%
Pocket money	£3,386	£4,337	£4,458	2.8%	31.6%
Furniture	£2,074	£3,373	£3,462	2.6%	66.9%
Personal	£925	£1,143	£1,155	1.0%	24.9%
Other	£8,845	£13,761	£13,909	1.1%	57.3%
TOTAL	£140,398	£218,024	£222,458	2.0%	58.4%

1.5796 US Dollars (USD) is equal to 1 UK Pound.   Or…   £222,458 would be approximately $350,000 which is a nice size chunk of change.