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Recent research says the average cost of having a child in the UK is around £223,256! That’s about £12,400 a year, or £1,030 a month.

Unsurprisingly, childcare makes up a large portion of this. Figures reveal parents are paying about £270 a week for 50 hours of full-time care for a child under two in England and Wales. But things are looking up, or rather, costs are going down. You may be able to reduce your bill by up to 20% by applying for tax-free childcare.

The government has recently increased the financial support for childcare for parents on universal credit by 47%. Jeremy Hunt’s 2023 budget also included plans to expand 30-hours free childcare to children aged between nine months and two years in England.

Primary school starts the September after the child turns four. Your childcare costs could drop to around £60 a week if you only need after-school care. But as your child gets older, you may also sign them up for music or sports classes, and there may be regular trips to the cinema or theatre.

Research suggests parents spend an average of £14,500 on enriching activities for their children between the ages of four and 18.

To get you started when waiting for your family to start, we look into the average costs of setting up for a baby. Don’t forget that many of the items on this list can be sourced second-hand or borrowed from friends. If you ask around, you’ll also receive the best tips on what you’ll need.

• A car seat. £100 – £200.
• Clothes – babies grow fast so don’t go overboard, but do make sure to get several onesies. Plus plenty of bed linen and muslins. £50 – £60
• Nappies – Tip! Buy in bulk. £12 – £24 in the first month
• Feeding – For breastfeeding, you’ll likely need specific clothes. Plus, maybe a breast-pump and a few bottles. Average cost: anywhere from £25 to £500. For bottle feeding, you’ll need formula milk, sterilising equipment, and bottles. £50 – £100 a month.
• Moses basket or cot. From £70.
• Baby bath. £10-£50
• Pram – A travel system including a car seat, carrycot, and pram may work out cheaper overall. £150 – £1,000
• Changing bag – You’ll need somewhere to put everything when you’re out. Look for lots of pockets! But a normal backpack or bag can work just as well. Around £25
• Play mat. Around £25
• Baby bouncer – Somewhere safe to put your baby while you go to the loo! Average cost: £20 – £300
• Changing mat. Around £7
• Baby monitor – you’ll probably need a monitor once your baby starts sleeping in his or her own room. See if any local mums have one they don’t use anymore hiding in a cupboard. £20 – £250
• Stair gates – once your baby starts crawling, you need to secure the stairs to prevent accidents. £15 – £50
• High chair. £30 – £300

Cost - Cutting Tips for Parents

While having a baby can be expensive, there are plenty of ways you can cut costs. Here are some top tips:

• Look out for special offers.
• If you earn under £60,000, apply for child benefit as soon as you can after the birth. You will probably get a leaflet about it at the hospital or when you register the birth.
• See if you can borrow items you will only need short term, such as stair gates, from friends.
• If you choose reusable nappies, check whether your local council offers a voucher that can go towards paying for them, or a free nappy kit.
• New mums are entitled to free prescriptions and dental care from the moment they become pregnant until their baby’s first birthday. So get your teeth checked before your baby turns one.
• Keep buying second-hand clothes – these are really handy for nursery, where your child will probably get covered in food and paint. Keep an eye out for second-hand toys too.
• Do babysitting swaps with local parents.
• Sell on anything you no longer need.
• Your local library can often be the best place to find free activities, as well as books and toys to borrow.

Source: https://www.thetimes.com/money-mentor/income-budgeting/family-finance/starting-family-baby-costs