As the cost of living continues to increase, childcare fees are at an all-time high, and the housing ladder harder than ever to climb onto, many people are having to make tough choices when it comes to whether they can afford to have children.
With UK birth rates at a record low and the cost of raising a child at its highest since records began in 2012, it’s perhaps unsurprising that many people feel priced out of having a family.
According to the Child Poverty Action Group, raising a child to the age of 18 can cost between £160,000 and £194,000.
These figures can be even higher if parents are living away from their family and unable to rely on their network for free childcare or support like hand-me-down prams, cribs, and clothing.
As a result, increasing numbers of couples are choosing not have children because of the effect it would have on their finances. Research commissioned by Forbes Advisor found that 24% of couples with a dual income and no kids have decided not to have a family for this reason.
It’s not just couples contemplating starting a family that have been impacted, a survey by Bambino Mio found that 22% of parents are choosing not to expand their families and have a second or third child because they can’t afford it.
And it’s not just this generation who have been affected; according to Jody Day from Gateway Women, one in five women are childless by midlife and 80% of those say they haven’t had children due to circumstance, not infertility.
Let’s look at the reasons behind this shift in more detail:
Cost of education
Many people feel forced to delay having a family due to the high cost of completing their education and getting started in their career. For people who choose to go to university, a typical undergraduate degree will leave a graduate with between £35,000 and £40,000 of debt.
Once entering the workforce, the average UK graduate salary is £38,500, but depending on their chosen career path, people can earn as little as £16,000 or as much as £90,000 a year in their first job.
Of course, a starting salary only applies if you’re able to find a job. The unemployment rate among recent graduates (since 2020) is 12.7% meaning that one in 10 graduates struggle to find employment despite potentially incurring several thousands of pounds of debt to earn their degree.
All these factors combined have led many younger people to put off having children until later in life when they have paid down their student debt and feel more established in their careers.
Cost of living
The increases in the cost of living in the UK have left many people struggling to cover their existing costs, let alone think about adding the expense of a child. With inflation in March 2024 currently at 3.2%, prices of everything from your weekly food shop to clothing and energy are still higher than they were a year ago when inflation hit record highs of 11%.
Rising prices have been compounded by rising interest rates. Many couples who have finally been able to get themselves on the housing ladder and may be contemplating having a child have now had to put plans on hold as their mortgage payments have increased by hundreds of pounds each month. These pressures are even more intense for single people who may have considered going it alone, but now can’t make their budget stretch.
Cost of unstable economic conditions
Higher prices are just one of the symptoms of an uncertain economy and many people in the UK are dealing with housing and job insecurity that can make it harder to think about becoming a parent.
With UK house prices nearly 20% higher than they were before the Covid-19 pandemic and the increased cost of everyday essentials making it hard to save a deposit, many couples in their 20s and 30s (and beyond) still see getting a mortgage as a distant dream. If they can afford to be a homeowner, they might need to choose between buying a home or being a parent.
While renting has its advantages, it’s also instable by nature. People may be reluctant to have children when they can’t be certain they’ll be able to stay in their home if the landlord decides to sell up, increase the rent, or move to evict you with little notice.
The current job market is also unpredictable. The tech industry, retail, and hospitality have all seen large-scale redundancies and businesses that have been high street staples like The Body Shop and Wilko’s have fallen into administration. When people are concerned that they might lose their job without warning, it’s understandable that they’d be reluctant to have children.
Cost of childcare
Childcare is one of the biggest roadblocks preventing people, especially women, from having children. The average cost of sending a child under two to nursery for 25 hours a week is £8,194 per year, a year-on-year increase of over £400.
While free government hours are available, there can be long waiting lists for nurseries and others are short-staffed and facing closure. According to Pregnant Then Screwed, 42% of parents say that the cost and availability of childcare has stopped them from having more children.
Many women, as the primary caregiver in most cases, feel unable to go back to work as the numbers just don’t add up. The prospect of falling two or three years behind in your career can be off-putting for prospective mothers who don’t want to risk being excluded from promotions and leadership roles.
Navigating debt and considering starting a family? Our team of experts is here to help you get your finances back on track so you can move forward. Give us a call on 0161 8260 585 or send a message here
