How much does it cost to raise a child UK?

The cost of raising a child to the age of 18 can be broken down into a list of smaller costs, these include (but are not limited to):

• Housing - As well as rent and mortgage payments, households in the UK spend £5.20 a day on water, electricity and gas^[2]
• Food - The average food cost for a UK household is around £5,023 per year^[3]
• Clothing - On top of day-to-day clothing parents could be spending, on average, £337 per year on school uniform for each secondary school child and £315 per year for each primary school child^[4]
• Education - State schooling system is free but parents will need to pay out for textbooks, stationery, packed lunches, school trips, etc
• Childcare - Childcare takes up more than half of the overall cost of raising a child
• Hobbies - Afterschool clubs, activities, days out

• Nursery furniture
• Car seat
• Pram
• Safety gates
• Baby monitors
• Carriers
• Highchair

As well as smaller essentials, such as:

• Bottles
• Nappies
• Wipes
• Dummies
• Bibs

There are certain benefits you can claim from the Government to help with the cost of raising a child. These include:

Child benefit

Child benefit is a payment made to parents which can help towards family budgeting.

You can claim child benefit for each of your children, regardless of whether you’re in work or not.

Each child must be under 16 or under 20 if they’re in full-time education.

Payments are tax-free as long as neither parent/guardian earns over £50,000 a year.

You’re still able to receive this benefit if your salary is over £50,000 but you’ll be required to pay some back in your income tax.

As of 2023, claimants are eligible to receive £25.60 a week for their first child and £16.95 a week for each additional child^[6].

Child tax credit

Child Tax Credit is a type of benefit used to help low-income households with the cost of raising a child.

However, it’s one of the six benefits being replaced by Universal Credit. This means that new applicants will need to apply for the child element of Universal Credit, rather than Child Tax Credit.

This can allow you to claim back up to 85% of eligible childcare costs up to a maximum of £1,014.63 for one child and £1,739.37 for two or more children^[7].

If you or your partner are receiving the Severe Disability Premium you can still make a new claim for Child Tax Credit.

Tax-Free Childcare

Tax-Free Childcare is a government scheme that will help working parents with the cost of childcare.

It can help to pay for registered childminders, nurseries and nannies, as well as registered afterschool clubs, playschemes and holiday schemes, registered schools and home care workers working for a registered home care agency.

To be eligible, parents must be working and have children under 11 (or under 16 if your child has a disability), earn at least £2,379 as a collective in 3 months (if you're over 21), have no more than £100,000 adjusted net income (per year, per parent), be employed or self-employed.^[8].

You can apply online by setting up a childcare account on gov.co.uk.

For each £8 you pay into your childcare account, the government will pay in £2 up to a maximum of £2,000 per child or £4,000 per disabled child each year.

You can’t use Tax-Free Childcare at the same time as Universal Credit.