Cost of raising a child hits nearly £200,000 

New research by MoneySuperMarket shows that raising a child in the UK costs anywhere between £143,412 and £500,982, depending on the childcare and schooling choices families make.  

By combining the latest Office for National Statistics (ONS) data with a new survey of UK parents, MoneySuperMarket’s analysis shows how underestimated the financial commitment of parenthood really is. Even when families can opt out of pre-school nursery childcare and wrap-around care at school, the costs of raising a child until 18 can still exceed £143,000. 

The data shows that the upper cost £500,982 (includes full-time nursery care, private school attendance, afterschool care and family holidays). The mid cost £194,246 (includes part-time nursery care, state school attendance, afterschool care and family holidays) whilst the lower cost £143,412 (no nursery care, state school attendance, no afterschool care and no family holidays) 

The new research shows that financial pressure on parents starts long before children reach school age. More than half of parents (51%) say they rely on grandparents or other relatives because formal childcare for pre-school-aged children is too expensive. Among parents with a child under 12 months, nearly three-quarters (72%) depend on family support for childcare. The research from MoneySuperMarket reveals that on average, full-time nursery care alone costs parents more than £13,000 a year in the UK.  

While state-funded education is free for families in the UK, the hidden and often unavoidable associated costs with sending a child to school are anything but; School-related expenses, such as uniforms, field trips, stationery supplies and sports kits, were ranked by parents in the UK as the single biggest unexpected cost over the past 12 months. Technology costs came in joint second, covering broken phones and laptop repairs. 

When household budgets are under pressure, holidays are often the first thing that families cut back on, with a third of parents (33%) saying trips away would be reduced first.  

Parents are making difficult personal finance choices to help raise their family: one in five (20%) have reduced their savings contributions, and one in 10 have cut back or paused pension payments to keep up with everyday costs of raising their children. 

Beyond the financial impact, MoneySuperMarket’s research also reveals: that 71% of parents feel stressed about the costs of raising their children and 73% feel anxious about the long-term financial impact on their household.

Whilst 72% feel guilty that they can’t always provide everything their children would like and 50% feel judged by other parents because of what they can or can’t afford.

With so many parents in the UK worried about the cost of raising a child, nearly three in 10 parents (29%) have decided not to have more children because of financial pressures, rising to 38% among parents aged between 18 and 24.  

A further 18% of parents also reported that they have chosen to have fewer children than originally planned due to the cost of raising a family in the UK. 

Kara Gammell, Life Insurance Expert at MoneySuperMarket said “Raising a child isn’t just about the big milestones, it’s the everyday decisions that quietly add up over time. Parents are constantly weighing up costs, from asking whether they can afford nursery fees this month, to deciding if they can say yes to a school trip or worrying about how they’d cope if something unexpected came along.  

“When you put real numbers against these choices, it becomes clear why so many families feel under pressure. While the long‑term cost of raising a child can feel daunting, having a realistic picture of day‑to‑day spending can help parents plan ahead, make informed financial decisions and think about the right protection for their circumstances – so they can focus on what really matters, their family.”