Cost of raising children going up

The cost of raising children has gone up in the last year, new figures have revealed.

According to data from Halifax, the average cost of bringing up a child to secondary school age has gone up by four per cent in the last 12 months to nearly £87,000.

Figures also showed that parents are spending around £650 a month on expenses such as schooling, food, holidays and clothes.

This equates to more than a third of average disposable income in the UK.

Perhaps unsurprisingly, the financial burden is particularly strong in the first year of their child's life.

Parents are spending almost £10,000 on average in the 12 months after their baby is born, with childcare being a key contributor to this figure.

Mothers and fathers are also getting hit by essential one-off purchases that had not been anticipated. For instance, one in three parents said they had to buy extra furniture after having a baby, while a similar proportion needed to purchase a new car.

Others invested in garden furniture, play equipment, entertainment devices and new white goods such as dishwashers after having children.

Many parents are absorbing these costs by trimming back on expenses elsewhere. For example, 51 per cent of mothers and fathers said they have cut back on going out with their friends, while 46 per cent do not eat out as often as they used to. Others are spending less on holidays and takeaway food.

Giles Martin, head of Halifax Savings, commented: "For many parents, the first 12 months of parenthood can be frantic and as our research shows, often the most expensive. 

"Having children is a huge commitment, both financially and emotionally. With unexpected costs along the way for the majority of families, it’s important to be realistic about how much things are going to cost and how much can be saved to meet the future needs of a growing family."