Half of young parents can’t afford to have more children

Half (49%) of younger parents aged 18-34 have decided to not to have another child as it has become too expensive due to the rising cost of living according to research from Creditspring.

Younger couples who were planning on starting a family have also been forced to change their plans due to the financial climate. A third (31%) of people aged 18-34 wanting a family have now delayed doing so as it is currently too expensive.

With more than 50,000 people in the UK turning to fertility treatment each year, these options provide a lifeline for prospective parents looking to start a family – although this treatment is offered on the NHS, rules vary across the UK and it typically only covers limited rounds. However, a fifth (21%) of young women who were planning to undergo IVF treatment but now admit they can no longer afford it because of the cost of living.

For millions of people, starting a family is no longer possible due to their financial situation – a quarter (25%) of 18-34 year olds, over 2.3 million people, who wanted children have decided against doing so purely because it’s too expensive.

Research from Child Poverty Action Group estimates the cost of raising a child to age 18 hit £166,000 last year for a couple. Coupled with rising costs for essentials such as mortgage costs, energy bills and food prices, this places huge financial strain on households.

Given the financial cost of starting a family, it’s no surprise that the fertility rate in England and Wales fell to 1.49 children per woman in 2022, its lowest ever level. Similarly, there was a 3.1% decrease in births in 2022 compared to the previous year.

Neil Kadagathur, CEO and Co-Founder of Creditspring said “Starting a family is fast becoming a luxury that is financially out of reach for a huge number of prospective parents. Millions of younger people are in the impossible position of having to choose between children and their financial security.

“Credit has previously been seen as a backup option that people are forced to turn to in an emergency – however, as the cost of living crisis impacts all areas of society, it’s increasingly becoming a vital lifeline that enables people to fulfil their life plans. For many, starting a family without credit is simply not possible. However, finance providers need to ensure that they create products that are clear, transparent and safe in both the short and long term financial stability of their customers.”