Raising a child to 11 ‘costs £90k’

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cost of raising a child

cost of raising a childParents and guardians have to spend a total of £90,000 in raising a child up to the age of 11, new research has revealed.

It equates to a yearly cost of £8,307 - up 15% from five years ago when it was given as £7,222, according to a study by the Halifax.

However, hard-pressed families may note that the cloud does fortunately have a vaguely-silver lining, as inflation over the same period has increased at an even faster rate.

Outlays

Sending a child to school is the single biggest cost of all, the research discovered, with costs such as uniforms, school lunches and classroom equipment really hitting households in the pocket.

Back in 2007 families had to spend £694 a year on schooling their child but that figure has risen by almost a quarter to £849, five years on.

Next on the list of largest outlays is childcare, as sending young children to nursery or a childminder had risen in cost by 22 per cent to £3,346 by 2011.

Perhaps unsurprisingly given the strain on household finances partly as a result of these outgoings, the study found that parents are spending less in real terms on food and clothes - although Halifax suggested that big retail discounts could also account for the decline.

Considerable strain

Commenting on the figures, Halifax economist Martin Ellis said the increasing cost of raising a child "has added to the already considerable strain on household finances during the economic downturn".

As the economic situation has worsened families have spent less on their kids, the study showed, with real terms spending on children growing by 3% compared to a 5.2% rise in inflation between 2010 and 2011.

Nevertheless, parents now spend almost a fifth of their income on raising a child.

Last week the Government told schools they have a "moral responsibility" in the current economic climate to ensure their uniform is not too expensive.

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