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The cost of raising a child

According to the 13th annual ‘Cost of a Child’ report from LV=, the cost of raising a child has increased by more than £2,500 in the last year.

Cost of a child

The annual LV= Cost of a Child report calculates the cost of raising a child from birth to 21 years old.

Now in its thirteenth year, our latest research shows costs have reached an all-time high of £231,843 – more expensive than the average house [1].

Some interesting figures from the research:

  • The average annual cost of raising a child now takes up more than a third (38%) of the average UK household’s net income.
  • The biggest increase over the year has been 4.3% for childcare costs.
  • Six in ten parents (59%) admit they’re struggling to manage their outgoings.
  • 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.


The Cost of a child calculations, from birth to 21 years, were compiled by the Centre of Economic and Business Research (CEBR) for LV= in December 2015 and are based on the cost for the 21-year period to December 2015.
[1] According to statistics from Halifax Regional House Prices for Q4 2015 (released on 07.01.2016), the average price of a semi-detached house in the UK is £219,255– this is £12,588 less that the cost of raising a child to the age of 21.

Discussing the findings

Video thumbnail

A video about the findings of our cost of a child research.

Watch our costs of a child video

Calculate your costs

Use our calculator to work out the cost of your child. Simply enter their age and we'll calculate the cost of raising them until the age of 21. You can 'add another child' and get the total cost of all your children.

Parents' money-saving tips

Danielle Whitehead talks about her money saving tips

Parents talk about the costs of children and ways to budget.

Watch our video on childcare money-saving tips

Cost of a child - the facts

Children in a row

We have got a breakdown of all the costs of a child to help you understand how it all adds up.

How can we help you save?

With the cost of raising a family continuing to climb each year it’s unsurprising that it is putting enormous pressure on household budgets. Highlighting these costs can help parents to better manage their finances as well as consider putting measures in place to ensure they have a secure financial future should they unexpectedly find themselves without a regular income.

Here are some money saving tips:

  • Be a savvy shopper - look for deals and online coupons when doing your weekly shop.
  • Work out a monthly budget - Write down your monthly expenses and try and save some each month for a rainy day.
  • Have the right cover in place - protect your family should you die or lose your income to an accident or illness.

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.

Myles Rix, Managing Director, Protection at LV=

Life Insurance

Provides a one-off lump sum for your loved ones if you die during the term of the plan.

Income Protection

Protects you against loss of income if you're unable to work because of an accident or sickness.

Mortgage Payment Protection

Helps you pay your mortgage or rent if you're unable to earn your normal income because of accident or sickness.

LV=, County Gates, Bournemouth, BH1 2NF, UK