Cost of raising a child increases to £220k

The cost of raising a child to the age of 21 now stands at £222,458.

Research by LV= has calculated how much money parents can expect to part with over the course of the first 21 years of their kids' lives. This factors in a series of expenses, such as education, food, clothing and childcare.

The figure is up more than £4,000 from last year, while there has been an £82,000 hike in the past decade. This highlights the financial pressure facing many people in the UK, as they are having to fork out more money for their kids at a time when wage growth is weak and the economy is struggling.

Education and childcare remain the biggest outlay for parents, costing £72,832 and £63,738 respectively over a 21-year period. On top of this, mums and dads will typically spend £19,270 on food and £16,195 on holidays.

The expense associated with raising a child may prove to be too much for many individuals and this could force them to seek out help in order to take control of their finances. In this case, taking out a debt management plan might be the best course of action, as it provides them with a way of reducing their repayments.

They will be able to renegotiate their debt repayment terms with their creditors, which should mean interest charges are frozen and it avoids the need for formal insolvency procedures.

Speaking about the study, head of protection at LV= Mark Jones said: "The cost of raising a child continues to soar and is now at a ten-year high. Everyone wants the best for their children, but the rising cost of living is pushing parents' 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."

By Amy White