Raising A Child 'More Expensive Than Buying A House'
The cost of raising a child in Merseyside, from birth to the age of 21, has reached £233,832 – making it more expensive than the average semi-detached house. According to the 13th annual ‘Cost of a Child’ report from protection specialist LV=, the cost of raising a child has increased by more than £2,500 in the last year across the UK, and more than £13,000 over the last five years.2 In the North West the figure rose from £222,831 in 2015 to £223,832 in 2016
The UK Average is now £231'843 The most expensive years are between the ages of one and four, with the cost of childcare and babysitting in particular adding to the financial strain, amounting to nearly a third (30%) of the total cost of raising a child.3 Childcare costs increased by the most over the last year (4.3%), making it the second biggest expense after education. With babysitting costs rapidly adding up, it’s no wonder separate LV= research found six in ten (61%) ask their friends and family to help, but nearly half (47%) say people are less available to pitch in than in previous years. One in seven (15%) parents say they have to pay for a babysitter more than once a week, rising to half (52%) of those in London. The average annual cost of raising a child now takes up more than a third (38%) of the average UK household’s net income and six in ten parents (59%) admit they’re struggling to manage their outgoings. However, half (49%) of parents don’t have a plan in place if the main breadwinner were to lose their income due to accident or illness and existing research suggests that only one in ten (12%) parents in the UK are covered by an income protection policy4, which could provide parents with the financial safety net they need to keep the family afloat, which would provide income replacement until they are able to get back to work. Myles Rix, Managing Director, Protection at LV= said: “The cost of raising a child is at an all-time high and, with the price-tag of childcare continuing to rise, family incomes are being stretched even further.
“An unforeseen illness or accident could have a huge impact on family finances and we would urge parents to ensure they have a plan in place to guard against a sudden loss of income, for example taking out an income protection product.”