The cost of raising a child to the age of 11 has risen to more than £90,000, new research suggests.
In 2011, the average annual cost of raising a child in Britain was £8,307 compared with £7,222 in 2007, an increase of 25 per cent in the last five years, research by the Halifax found.
Inflation over the same period, as measured by the Retail Price Index, rose by 18 per cent, and parents now spend just under a fifth (18%) of their average household income on bringing up a child.
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The biggest increase in parent expenditure incurred by parents was the cost of schooling. In the last five years, the amount of money spent on uniforms, class materials, school trips and lunches increased from £684 to £849, a rise of 24 per cent.
The costs of nursery and childminding made up the second largest increase which have grown by 22 per cent to £3,346 in 2011. These typically accounted for 40 per cent of the total annual expenditure incurred by parents raising children, while nursery, childminding and the cost of schooling combined accounted for half of the total annual expenditure.
Parents spent £889 feeding their children in 2011, an increase of 14 per cent from £780 in 2007. Food accounted for 11 per cent of the total cost annual of raising a child.
Spending on children’s holidays also rose by 16 per cent from £636 in 2007 to £740 in 2011.
The amount spent by parents on children’s clothes fell from £602 in 2007 to £513 in 2011, down 15 per cent. This could have been due to the economic downturn, as heavy discounting took place amongst retailers, the Halifax suggested.
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It also said that the annual growth in spending by parents on their children had slowed three per cent in 2011, which represented a fall in real terms as inflation grew by 5.2 per cent between 2010 and 2011.
Martin Ellis, an economist at Halifax said: "The cost of raising a child under the age of 11 has increased by 15 per cent over the past five years. This has added to the already considerable strain on household finances during the economic downturn.
"Child care costs and education account for half, or £4,200, of the total annual cost of raising a child. This is a substantial sum for most households, so it pays to ensure sound financial planning when you are looking to start a family."