Raising a child more expensive than buying a house

• At £231,843, bringing up a child costs more than the average house
• The cost of raising a child takes up more than a third (38%) of the average UK household’s net income
• Childcare costs show the largest rise, increasing by 4.3% over the last year

The cost of raising a child in the UK, from birth to the age of 21, has reached £231,843 – making it more expensive than the average semi-detached house [1].

According to the 13th annual ‘Cost of a Child’ report from protection specialist LV=, the cost of raising a child has increased by more than £2,500 in the last year, and more than £13,000 over the last five years [2] In London, the cost of raising a child is now more than a quarter of a million pounds - £253,638.

The most expensive years are between the ages of one and four, with the cost of childcare and babysitting in particular adding to the financial strain, amounting to nearly a third (30%) of the total cost of raising a child [3]. Childcare costs increased by the most over the last year (4.3%), making it the second biggest expense after education.

With babysitting costs rapidly adding up, it’s no wonder separate LV= research found six in ten (61%) ask their friends and family to help, but nearly half (47%) say people are less available to pitch in than in previous years. One in seven (15%) parents say they have to pay for a babysitter more than once a week, rising to half (52%) of those in London.

The average annual cost of raising a child now takes up more than a third (38%) of the average UK household’s net income and six in ten parents (59%) admit they’re struggling to manage their outgoings.

However, half (49%) of parents don’t have a plan in place if the main breadwinner were to lose their income due to accident or illness and existing research suggests that only one in ten (12%) parents in the UK are covered by an income protection policy [4], which could provide parents with the financial safety net they need to keep the family afloat, which would provide income replacement until they are able to get back to work.

Myles Rix, Managing Director, Protection at LV= said: “The cost of raising a child is at an all-time high and, with the price-tag of childcare continuing to rise, family incomes are being stretched even further.

"An unforeseen illness or accident could have a huge impact on family finances and we would urge parents to ensure they have a plan in place to guard against a sudden loss of income, for example taking out an income protection product."

The full facts: Cost of a Child 2003 - 2016

*Does not include private school fees but does include day to day costs associated with going to school (e.g. school trips, text books, uniform and school lunch) and university fees. Sending a child to private school would add, on average, £141,863 for a child attending day school, or £260,927 for a child boarding at school, to the overall cost of raising a child, according to CEBR.

The cost of a child in 2011 was calculated at £218,024. £231,843 - £218,024 = £13,819.

The cost of raising a child is £11,040 a year on average (£231,843/21 years). The mean total weekly household income in the UK was calculated as £731.78 a week (£38,031.76 a year) using ONS data. Using Listentotaxman, the average net UK household income was calculated as £28,948.80 - £11,040 as a percentage of £28,949 is 38%.

Mintel Income Protection Report – February 2015. The data also shows that 9% of working households have some form of income protection policy.

Cost of a child by age

Cost of a child by region