Cost of raising a child soars

The report by Lverpool Victoria found the average amount mums and dads spend is £231,843.

That means it takes up more than a third of the average households income, with many parents not having a plan in place should they suddenly lose their job.

One of the most expensive times in a child’s life is the first four years, with families typically spending £74,723 as they provide for the new addition and handle the costs of childcare. 

To help relieve the pressure the government is piloting a scheme to provide 30 hours of free nursey care to pre-schoolers from September 2016.

Although a report suggests that less than half of nurseries will be able to provide the service due to lack of funding.

Tax-Free Childcare (TFC) is expected to launch in 2017, which claims to save self-employed parents up to £2,000 per year.

According to Iain McMath, who is the CEO of Sodexo Benefits and Reward Services which is a leading provider of childcare vouchers in the UK, the average saving will be closer to £600.

McMath said: “This is a situation that threatens not only household budgets, but also the wider economy, since it actively discourages many parents from working outside the home”.

He advises mums and dads to consider joining his scheme before it closes to new entrants in 2017 saying it could save families up to £25,000 over its 15 years duration.

The highest cost in a child’s life is university when the cost to parents reaches a staggering average of £17,815 per year.

Parents who send their children to private school can spend on average £373,000 by the time they hit 21, with boarding school costs inflating to £492,770. 

Nearly a third of outgoings are from babysitting costs, with many struggling to get support and childcare assistance from other family members and friends.

Family experts have attributed paying towards childcare as the reason many mothers are putting off having children until their 30s, and why many families are smaller.