Couples who are planning to start a family in London should know how expensive it is to raise a child this year. They should expect to spend more than a quarter million pounds just by raising a child.
Raising a child from birth to the age of 21 has increased more than £230,000, much expensive than an average semi-detached house. Parents will spend £70,000 or more for childcare excluding on educational expenses, according to The Guardian.
According to Centre for Economics and Business Research analysts, a regular parent may expect to spend a total cost of £231,843 for raising a child. It includes the education, childcare, food, and other necessities a child need until he/she turn 21 years of age. It is an increase of 65 percent since 2003.
Childcare cost increased from 4.3 percent last year, even the general inflation is just 0.2 percent with an average salary increase of around 2 percent, according to the researchers. Inflation from 78 percent for childcare since 2003 is far from 45 percent since then.
According to research, "The cost of raising a child has increased by more than £2,500 in the last year, and more than £13,000 over the last five years. In London, the cost of raising a child is now more than a quarter of a million pounds- £253,638." An average UK parent will spend more than 38 percent of their take-home pay.
Six out of 10 parents are struggling from spending more than a third of their salary for raising a child, according to Centre for Economics and Business Research (CERB). In Yorkshire, the total cost of raising a child is £214,559, which is lower than the average while in London the cost is higher at £253,638, according to International Business Times.
Liverpool Victoria managing director Myles Rix said, "The cost of raising a child is at all-time high and, with the price-tag of childcare continuing to rise, family incomes are being stretched ever further."
