British parents have been hit hard by the news that the cost of bringing up a child and sending them to university has increased by £5000 in the past year alone, taking the total estimated cost to around £227,266.
This is according to a research study conducted by the Centre of Economic Business Research who analysed family expenditure over the course of their childrenís first 21 years, in order to assess which direction child raising costs have been moving.
And the findings report emphatically disclosed that parents now spend an average 28% of their total salary on their kids, with the largest percentage being attributed to education costs. This figure stands at £73,803 on average of familyís total expenditure on children, with the second high percentage being attributed to childcare, which stands at £66,113.
A further survey conducted to supplement the findings of the primary research programme found that a number of parents have had to make substantial alterations to their plans due to the recent cut in benefits and the ever rising cost of living in the UK.
The survey revealed that 20% of the parents have stalled on having a second child due to rising financial burdens on their income, whilst a monumental 71% identified that they had cut their spending significantly.
Last month, the yearly Cold of a Child report revealed that childcare costs had raised by a sizeable 62% in the past decade, whilst family spending on children during their first year had risen to 50%, taking it up to £11,000.
The report highlighted that changes to the benefit system last year have had a lasting impact on young parents with children under the age of one, where 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. Furthermore, once one of families parents earn over £60,000, no benefits are available to them.
The report also highlighted the rising price of education in the country, with university fees surging the increase on parental expenditure by 123%.
The steepest rise in 2013 was shown to be on childcare costs, which were up 3.7% from back in 2012. It has been estimated that the average monthly childcare cost for a parent is around £400, with a number of parents disclosing that they had to earn at least over £52,000 collectively to be able to afford to work and have childcare side by side.
Childcare and babysitting costs showed the biggest annual rise, and are up by 3.7% since the last report. The Daycare Trust has put the average cost of childcare at £405 a month, and LV= found that mums believed they now needed to earn an average of more than £26,000 a year to make it worth returning to work.
The survey showed that single parents were being hardest hit by rising costs, now spending 54% of their pay on their children.
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.
Gingerbread chief executive, Fiona Weir, 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 ñ 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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