The total cost of bringing up a child from birth to age 21 can now exceed a quarter of a million pounds, according to new research.

True, these figures include private school fees, but even without these, parents could spend £180,137 on raising a child from birth to the age of 21, according to Liverpool Victoria’s annual Cost of a Child survey. This is equivalent to £8,578 a year, £715 a month or £23.50 a day.

Even this lower figure is enough to buy an average house away from the highest priced areas of the country.

The survey by the friendly society shows that the cost of raising a child has increased by 28% since the survey began in 2003. Childcare and education are the biggest expenditures, costing parents £49,092 and £46,778, and having increased by 7% and 26% respectively since 2005 alone.

And rising still faster…

The cost of raising a child in the UK is also rising at a faster rate than property prices. The price of the average house has risen by 8% within the last year (to £181,186), whilst the cost of raising a child is up 9% on last year’s survey. This increase is also almost four times the rate of inflation.

Putting a child through university education now costs almost £32,500 including fees, books and living costs.

Parents who choose to privately educate their children can expect to spend an extra £71,000 if their child is a day pupil, or £130,500 more, if their offspring boards.

Childcare costs are the second largest expense. They have risen 7% in the past year and now cost parents over £49,000 per child.

"Raising a family requires careful financial planning and regular saving, as well as a great deal of hard work," said Liverpool Victoria's communications director Nigel Snell.

Financial planning/ savings

68% of parents have had to put on hold:

• Holidays - 61%
• Socialising - 60%
• Leisure activities - 51%
• Career changes - 42%