How much will it cost to raise a child in 2022?

8 minutes

Rising parenting costs are causing difficulties for families, whether it’s childcare or higher education fees. What will 2022 bring, and how can parents manage their finances?

  • The cost of raising a child is still increasing
  • Having a child is encouraging parents to pursue their careers
  • Higher education fees are leaving many unable to afford further education

Understanding the true cost of raising children in 2022 can help you plan your finances

The total cost of raising a child to 18 is calculated at £160,692 for a couple

The total cost of raising a child is the highest it has been since calculations started in 2012 according to the Child Poverty Action Group (CPAG).[1] This increase has been attributed to higher prices caused by inflation as opposed to a change in the basket of goods needed to raise a child.[2]

According to the CPAG, the cost of raising a child (excluding housing, childcare and council tax) from birth to 18 is now:

  • £160,692 for a couple family
  • £193,801 for a single parent/guardian[2]

Cost of nursery

Children in the UK receive free pre-school education from the age of three. Up to that point, parents who want to send their children to nursery have to pay for it themselves. The spiralling cost of nursery places doubles the rate of inflation and average cost for a part-time nursery place in 2021 was £138 per week. This means that families sending one child to nursery for 25 hours per week could expect to fork out more than £7,000 annually.[3] [4]

Childcare costs

A recent report revealed that the cost of childcare rose four times faster than wages between 2008 and 2016, and in London seven times faster[5]. The 2021 Childcare Survey from Coram Family and Childcare, which is recognised as one of the most comprehensive industry surveys, found that parents were paying on average 4% more for childcare in 2021 than they were a year previously for children up to 24 months, and 5% more for children aged two.[4]

Based on this growth, childcare costs are expected to increase in 2022 as well. Parents have already experienced rising childcare costs over the past three years with the government ending the childcare voucher scheme in October 2018. The vouchers have now been replaced by Tax-Free Childcare

‘We missed out on the first few months of Tax-Free Childcare after our daughter went to nursery as it's so badly promoted', says journalist and mum Shannon Kyle (@ShannonDotKyle). ‘It was only through a friend we heard about it and immediately signed up. The system is hard to navigate and sometimes goes wrong, but it saved us 20% per month on fees, which adds up to about £150 – a great saving.’

Added pressure on working parents?

Mintel data also suggests that mothers often have to return to work after giving birth due to high childcare costs. In 2017, 4.9 million mothers with dependent children were in work, up from 3.7 million in 1996. Statistics from 2019 show over three-quarters of UK mothers with dependent children are now in employment.[6]

Of course, money is only one factor. Women are now less likely to choose being a stay-at-home mother over their career ambitions. In fact, 24% of new mothers were more interested in their career after having a child.

Household spending costs

According to the latest Office of National Statistics (ONS) release, the average UK weekly household spend was £587.90 in 2020. However, there was a significant disparity in the highest and lowest spending regions of around £200 a week [7]. This has now risen slightly to £588 at the start of 2021 [8].

The average UK weekly household spend was estimated at £588 per week at the start of 2021

Government data shows that the Consumer Price Index including the housing costs of owner-occupiers, or CPIH, rose by 4.8% in the 12 months from December 2020 to December 2021[9]. The CPIH is based on the average prices for a basket of around 700 commonly purchased goods and services.

So, will bills increase in 2022?

‘Without a doubt household bills continue to climb,’ says Shannon. ‘We order things in bulk where we can, such as pet food, and we change our electricity and gas suppliers and insurers every year to get the best deal. It takes time to shop around but is often worth doing when we can.'

Ofgem announced a lifting of the price cap on standard tariffs for household energy towards the end of 2021 which will in turn see consumers' bills rise significantly. This could see some energy bills rise by up to 50% in the Spring.[10]

Education costs

Continuing cuts to the education budget could see schools relying more and more on parents’ voluntary payments.

Parents in the UK don’t actually spend much on education when compared to their other costs, due to the state school system. In fact, only 1%  of the average household spend goes towards education, according to the ONS. 

Parents aren’t obliged to help fund their schools, though, and children can’t be exempted from activities that need parental funding because their parents can’t pay. Of course, there will be parents spending more on education.

There are establishments that are finding novel ways to provide affordable private education despite the cuts, including The Independent Grammar School: Durham – a private school that opened its doors at the start of the 2018 school year, which is charging parents £63 per week.

It is when children reach 18 and begin considering higher education that the real costs begin to kick in. University fees for home students in the UK have risen to £9,250 per year, with a total average cost of £22,200 per student to achieve an undergraduate degree.[11] 

‘If your child is still young, then start saving for their higher education now,’ recommends Kalpana Fitzpatrick, financial journalist and founder of (@MumMoneyMatters). ‘One if the best ways to kick start their university fund is a stocks and shares Junior ISA. This is a long-term investment option for five years, or ideally ten years, but the return potential is much higher than that of a cash ISA.

‘But beware: once the money is in, it belongs to the child to do as they please with when they’re 18,’ she adds. 



[1] The cost of a child in 2021, Child Poverty Action Group.




[5] Trades Union Congress (TUC), 2017


[7] Office for National Statistics, 2020. Family spending in the UK: financial year ending 2020.