Education and childcare remains the biggest expenditure for parents. The cost of education, including uniforms, after school clubs and university costs, has shot up from £32,593 to £72,832 per child in the last ten years.
Childcare costs have also rocketed, up from £39,613 in 2003 to £63,738 today.
The rising cost of nursery care is high on the agenda for the Coalition. But it recently backed away from plans to give every parent with children under five tax relief worth about £2,000 per child. It had beenbilledas the principal policy to emerge from the Coalition’s Mid-Term Review.
The cost of electronic gadgets has presented a new financial strain on family budgets, with annual spend increasing to £302, as have holidays, up from £11,458 a decade ago to £16,195. However, the increase on each is likely to be due to families committing more of theirdiscretionary spendingrather than being just down to price rises.
“The cost of raising a child continues to soar and is now at a ten year high,” said Mark Jones, head of protection at LV=.
“Everyone wants the best for their children, but the rising cost of living is pushing parent’s finances to the limit. There seems to be no sign of this trend reversing. If the costs associated with bringing up children continue to rise at the same pace, parents could face a bill of over £350,000 in ten years’ time.”
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