The cost of raising a child to pre-secondary school age has risen to more than £90,000, figures reveal.
The average annual cost of raising a child up to the age of 11 in Britain has increased by £1,085 in the past five years, up 15 per cent from £7,222 in 2007 to £8,307 in 2011, the study by Halifax suggests.
Inflation, as measured by the Retail Price Index, rose by 18 per cent over the same period, with parents spending just under a fifth – 18 per cent – of their income on bringing up their child.
Schooling made up the largest increase in spending – including money spent on uniforms, class materials, school trips and lunches – with costs estimated to have increased by 24 per cent, from £694 a year in 2007 to £849 in 2012.
The costs of nurseries and childminding accounted for the second largest increase, growing by 22 per cent to £3,346 in 2011.
This typically accounted for 40 per cent of the total annual expenditure incurred by parents when raising their offspring, while nursery and childminding combined with schooling accounted for half of the total annual expenditure.
Spending on food and holidays fell in real terms, with parents spending £889 feeding their children in 2011, an increase of 14 per cent from £780 in 2007.
Meanwhile, the money lavished on children’s holidays rose by 16 per cent to £740 during the same period.
Spending on their clothing fell by from £602 in 2007 to £513 in 2011, or 15 per cent.
However, ‘heavy discounting’ among retailers to cope with the economic downturn could have had an impact on the figures, the report said.
Halifax said annual growth in spending by parents on their children had slowed since the UK’s ‘weak recovery’ from the 2008-2009 recession to 3 per cent in 2011 – a fall in real terms, as inflation grew by 5.2 per cent between 2010 and 2011.
Halifax economist Martin Ellis said: ‘The cost of raising a child under the age of 11 has increased by 15 per cent over the past five years.
‘This has added to the already considerable strain on household finances during the economic downturn.
‘Childcare costs and education account for half, or £4,200, of the total annual cost of raising a child.
‘This is a substantial sum for most households, so it pays to ensure sound financial planning when you are looking to start a family.’
Source: The Daily Mail