Children aren’t cheap anymore
UK Parents Now Spend £249,000 to Raise a Child, Moneyfarm Reports
The cost of raising a child in the UK has reached a record £249,000, according to new research by investment platform Moneyfarm. The sharp increase—up £26,000 since 2023—is driven by soaring childcare fees, rising living costs, and the growing lifestyle spending of teenagers.
Moneyfarm tracked 150 child-related essentials across low-, medium- and high-budget households. Depending on income level and spending habits, total costs can vary widely, ranging from £161,000 to £426,000 per child.
Teenagers Are Now the Most Expensive Age Group
The analysis shows parents spend the most between ages 15 and 18, totaling £65,016 in late-teen years. Spending on beauty, grooming, and personal care has doubled since 2023, reaching £1,182 per year.
Childcare Pushes Toddler Costs to £53,701
The second-costliest stage is early childhood. From birth to age three, parents now pay £53,701, largely due to rising childcare fees. Nursery bills alone can total £34,250, reflecting a 12% increase in a single year. By comparison, the UK’s consumer price index rose only 6% over the same period.
Costs Up £100,000 in a Decade
In 2015, the Child Poverty Action Group reported the cost of raising a child to 18 at £149,805. Today’s figures indicate an increase of nearly £100,000 over ten years.
Moneyfarm’s Chris Rudden said the accelerating rise is “unprecedented,” noting that families face pressure from all sides—food, childcare, technology, and the rising importance of social and cultural activities.
Experts Link Rising Costs to Falling Birth Rates
Economists warn that the financial burden is contributing to the declining fertility rate in England and Wales, which hit a record low of 1.41 in 2025.
Rebecca Montacute of the Social Market Foundation said high housing and childcare costs are major factors reducing birth rates, urging reforms in housing affordability, planning, and childcare support to address long-term demographic challenges.
