The cost of raising a child has dramatically increased in the UK
The real-term costs of raising a child in the UK has increased by 11 per cent since 2003, according to research by family shopping club KidStart, with the average cost of raising kids in the UK increasing by 55 per cent, more than double the increase in rise of income.
According to Research Company CIP, from 2003-2011 the average cost of raising a child in the UK has increased by 55 per cent, meanwhile the average rise in UK income has only increased by a quarter.
This means that parents on an average single income of £21,473 a year could now spend on average up to 49 per cent of their earnings on raising their child compared, to just 38 per cent in 2003.
With the cost of raising a child increasing more than average income, the UK is now one of the most expensive countries to raise a child. Also, with the recent cuts in child benefits and rising university fees, this percentage is only set to increase in the future.
CEO of KidStart, Julian Robson, said: “Families are well aware that children are expensive but when this escalating cost is compared against the average rise in income we can clearly see why parents are burdened by financial pressures.
“With the recent cuts in child benefits, parents will need all the support and advice they can get to help make their money go further and combat the rise in living costs.
The research also showed that in UK 44 per cent of working parents cite financial pressures as their greatest worry. While the UK house price in September 2012 was £233,000 just slightly less than it would cost for you to raise a child in London from cradle to college - £234,263.
Furthermore, the most expensive period of a child’s life is the university years with an increase of three quarters from 2003 to 2011. This is due to increased tuition fees over the last 10 years.
For those looking for an affordable place to have a family, Sweden is the cheapest country to raise a child as parents only spend around five per cent of their income on the kids.
Julian added: “KidStart’s aim is to try and ease those money worries and help parents save for their children’s future.
“For families, knowing that they are saving money whenever they do a regular shop at one of our partner retailers is a huge relief as their money can stretch even further.”
KidStart is a shopping club for families. It helps parents save money for their children’s future every time they shop at an ever increasing range of top brand retailers. You simply sign up at www.kidstart.co.uk and start shopping at one of hundreds of KidStart partner retailers.
For every purchase you make KidStart will automatically credit your account with money to go towards your children’s savings.
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