Parents being hit hard on the raising costs of raising a child

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Parents being hit hard on the raising costs of raising a child

Many British parents have been really hit by the news that the cost of bringing up a child and then sending them onto university has increased by £5000 in the past year alone rocketing the total estimated cost to around £227,266.

 

According to research conducted by the Centre of Economic Business Research who analysed family expenditure over the course of their children’s first 21 years in order to evaluate which direction costs involved with raising a child have been moving. They found that parents now spend an average 28% of their total salary on their children, most of the cost being down to education costs. The figure stands at £73,803 on average of a family’s total expenditure on children, with the second highest percentage being down to childcare which costs about £66,113.

 

Another survey found that 20% of parents have stalled on having a second child due to the financial burden on their income, whilst 71% admitted that they had cut their spending significantly. Last month, the yearly Cold of a Child report revealed that childcare costs had risen by 62% in the past decade, with family spending on children during their first year rising to 50% (£11,000). The report highlighted that changes to the benefit system last year really impacted on young parents with babies under the age of one – parents whose annual income totals higher than £50,000 will have to pay tax on their benefits, even if the other is not in employment. If a family earns over £60,000 no benefits are available to them. Along with this the report also highlighted the rising price of education in the country with university fees increasing the parental expenditure by 123%.

 

The highest rise was in 2013 on childcare costs, which went up 3.7% from costs in 2012. It has been estimated that the average monthly childcare cost for a parent is around £400 with many parents stating that they have to earn over £52,000 collectively to be able to afford to work and have childcare at the same time.

 

The survey also revealed that single parents were being hit hardest by rising costs with them now spending 54% of their pay on their kids. Charity Gingerbread said that an internal study conducted by them earlier this year produced similar results and has called for action to be taken to ease the financial demands on young, single parents. Fiona Weir the chief executive said “Three-quarters of single parents surveyed by Gingerbread feel worse off than they did a year ago, and almost two-thirds say they expect their financial situation to worsen over the next year…Single parents are doing a remarkable job holding their families together while under immense financial pressure – but it’s taking its toll. Many have pared back all they can and now face debt and very difficult decisions over heating and food for their families”

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