Cost of raising a child hits £220,000

An annual study found the rising cost of childcare, education, food and a range of other items meant parents in Scotland face an average bill of £220,857, higher than the UK average of £218,024.

The Scottish figure, of which the cost of education and childcare makes up more than half, represents a 3.3 per cent rise on the previous year and a more than 60 per cent rise since 2003, the first year the survey was carried out.

The study, which was compiled by the Centre for Economics and Business Research (CEBR) on behalf of insurance and investment firm LV=, found that, across the UK, there had been a 120 per cent rise in the cost of education and a 57 per cent rise in the cost of childcare since 2003.

While London is the most expensive place to raise a child, Scotland remains more expensive than the national averages for both England and Wales.

The report found that across the UK, education accounted for the biggest rise in costs, with universities set to introduce fees of up to £9,000 later this year. However, Scottish students studying in their home country will remain exempt from fees. Mark Jones, head of protection at LV=, said: “Despite an uncertain UK economy forcing more pressure on the family budget, it’s clear that parents don’t begrudge the money they spend on their children, and would rather do without themselves than radically cut back on what they can provide for their children.

“From studying parents’ spending habits, we’ve seen the cost of raising a child steadily increase since our first report in 2003, and this trend shows no sign of stopping.”

While fees for private schools were not included in the figures, the report found that sending a child to a fee-paying school could add another £105,336 to the total cost. Commenting on the figures, Citizens Advice Scotland’s policy officer Matt Lancashire said: “Sadly, it comes as no surprise to us that the cost of raising a child has gone up with the VAT increase, high energy bills and the rising price of food.

“With household incomes falling, many people are struggling to clothe and feed their children in these difficult times.

“Anyone who is struggling can get free, independent help from their CAB. But the government also needs to take figures like these into account when considering their overall economic policies. Is this really the right time, for example, to be imposing welfare cuts on vulnerable families?”