Fewer parents cut insurance

The seventh annual survey from LV= on the Cost of a Child, shows that, for the first time, parents pay more than £201,000 on raising a child from birth to the age of 21. This is £9,610 a year, £800 a month or £26 a day.

It found 19% of parents had cancelled or reviewed their insurance products and income protection cover to help with family budgeting. This is down from 23% who said the same at the start of 2009.

The survey by the UK's largest friendly society shows the cost of raising a child has increased by 4% in a year and is up 43% over the seven years since the survey began in 2003. Childcare at £54,696 and education, at £52,881, are the biggest costs.

The £201,809 total cost is made up of:

Expenditure Dec 2009 / Jan 2009 / 2003

• Childcare £54,696 £53,818 £32,853
• Education £52,881 £50,240 £32,593
• Food £17,490 £17,205 £14,918
• Clothing £14,035 £13,281 £11,360
• Holidays £13,207 £11,920 £11,458
• Babysitting £11,003 £10,826 £6,760
• Hobbies & Toys £10,780 £10,313 £8,861
• Leisure and Recreation £7,772 £7,415 £6,366
• Pocket money £4,338 £4,144 £3,386
• Furniture £2,770 £2,366 £2,074
• Personal £1,107 £1,037 £925
• Other £11,731 £11,207 £8,845
• Total £201,809 £193,772 £140,398