Cost of Raising A Child Has Risen 55 Percent In Less Than A Decade

By: EW News Desk Team   Date: 26 January 2012

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EW News Desk Team

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EconomyWatch, News Desk Team

 

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26 January 2012

Things are getting expensive with the rising cost of living. A new study has found that raising a child just got 55 percent more costly, with education, childcare and food the biggest ticket items in the basket.

According to the Cost of a Child 2012 report, it costs 120 percent more today to educate a child to the age of 21, compared with 2003, while the cost of childcare has soared 57 percent over the same period.

When compared with 2011, the cost has increased by 3.3 percent to raise a child to the age of 21.

The report, which was compiled by the Centre for Economics and Business Research (CEBR) on behalf of insurance and investment firm LV=,  found that across the UK, education accounted for the biggest rise in costs, with universities set to introduce fees of up to £9,000 (US$14,088) later this year.

Related Infographic: Is Higher Education the Next Big Bubble?

The overall bill has increased by 55%, from £140,000 (US$217,760) since the report was first published in 2003 to £211,113 (US$339.122), equivalent to £28.44 (US$44.23) a day.

Mark Jones, LV= head of protection, said:

With the coalition Government cutting back on benefits and local services, and with university tuition fees set to rocket, the costs associated with raising a family look set to remain a pressure point for families across the UK.

Related: U.K. Inflation

Related News: UK Unemployment Reaches 17-Year High

But he added:

Despite an uncertain economy forcing more pressure on the budget, it is clear parents don’t begrudge the money they spend on children, and would rather do without themselves than radically cut back on what they can provide.

According to the respondents, more than 67 percent said they would manage their expenditure by switching to budget brands, and 43 percent admitted to saving less.

When it came to attitudes towards university education, most parents said they hope to be able to provide for tuition costs, while 15 percent said their children would have to co-fund their own university fees.

Related News: UK Consumer Confidence Plunges to Record Lows

Related Story: Anarchy in the UK: The Socio-Economic Factors Behind The London Riots

 


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