Children are Becoming Ever Less Affordable as the Real Terms Cost of Raising a Child Rises by 11% Over the Last Eight Years

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Cost of raising a child compared to rise in income reveals UK is one of the most expensive countries to bring up children

Research collected by KidStart (http://www.kidstart.co.uk), the family shopping club, has revealed that the real-terms cost of raising a child in the UK has increased by 11% since 2003.

According to Research Company CIP, from 2003-2011 the average cost of raising a child in the UK has increased by 55.29%. However the average rise in UK income has only increased by 25.07%.

This means that parents on an average single income of £21,473 a year could now spend on average up to 49% of their income on raising their child compared to just 38% in 2003.

With the cost of raising a child increasing more than average income, the UK is now one of the most expensive countries to raise a child. Furthermore, with the recent cuts in child benefits and rising university fees, this percentage is only set to increase in the future.

Research collected across the UK and internationally has also shown that:

  •     In the UK 44% of working parents cite financial pressures as their greatest worry.
  •     The average UK house price in September 2012 was £233,000 just slightly less than it would cost for you to raise a child in London from cradle to college - £234,263.
  •     The most expensive period of a child’s life is the university years with an increase of 75% from 2003 to 2011. This is due to increased tuition fees over the last 10 years.
  •     Sweden is the cheapest country to raise a child as parents only spend 4.7% of their income. 13% is the average proportion of income that parents spend on their children across the globe.

Julian Robson, CEO of KidStart says: “Families are well aware that children are expensive but when this escalating cost is compared against the average rise in income we can clearly see why parents are burdened by financial pressures.

“With the recent cuts in child benefits, parents will need all the support and advice they can get to help make their money go further and combat the rise in living costs.

“KidStart’s aim is to try and ease those money worries and help parents save for their children’s future. For families, knowing that they are saving money whenever they do a regular shop at one of our partner retailers is a huge relief as their money can stretch even further.”

KidStart is a shopping club for families. It helps parents save money for their children’s future every time they shop at an ever increasing range of top brand retailers. You simply sign up at http://www.kidstart.co.uk and start shopping at one of hundreds of KidStart partner retailers. For every purchase you make KidStart will automatically credit your account with money to go towards your children’s savings.

-Ends-

For more information:
Charlotte Nicholds
Parys Communications
0208 875 7960

About KidStart
KidStart believes there is no greater feeling than doing something good for your kids. We help parents do something good every time they shop by putting money into their child's savings account for every purchase they make. FSA regulated, KidStart is free to join and use and works with hundreds of like-minded retailers. KidStart is not a typical loyalty programme; there are no points, no membership cards, no hassle, no catches, no hidden charges. Just cash for kids, it's that simple.

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Charlotte Nicholds
cnicholds@parys.com
0208 875 7970
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