You are here: Home - Household Bills - News -

Two children can increase household bills by £10,000s a year

0
Written by:
26/03/2018
Having two children can increase your household bills by £36,500 a year, compared to living alone, according to a new study from MoneySuperMarket.

Coupling up can deliver a boost to your finances, finds the report. To cover all regular payments like bills and rent, a person living alone has to spend £12,114. A second householder only brings costs to £13,435, paid for, usually, by two salaries.

A new baby would bring £1,615 a year alone in energy bills, food and rent. Those choosing to send children to private school are looking at an average annual hit of £13,194 per child.

The survey showed that rent increases from an average of £840 for a one-bedroom house; this increases to £962 on average once a second bedroom is added. Child benefit of £20.70 a week for the first child pays for only 17% of the difference.  For those choosing to buy, the average cost of a house can range from £168,000 for a one-bedroom house to £585,500 if you’re buying bedrooms for four children.

Children also add to energy and water bills, by an average of £212 a year. Starting at 2,480 kWh for a single person (about £328 a year in bills), an average electricity bill can rise to as much as £635 a year for a three-person household. And they need feeding. The average weekly food shop for a couple and their child is £42.70, as opposed to £37.20 for a couple.

Kevin Pratt, consumer affairs expert at MoneySuperMarket, said: “Starting or expanding a family is a huge step in all sorts of ways, and it’s crucial not to under-estimate the impact on household finances. Those with children on the way already know they’ll be paying for clothes and equipment for the little ones, but they may not fully appreciate how their routine bills will be affected.

“That’s why they need to make a cool assessment of how their outgoings will be shaped by a larger household so that they can take control of their finances, make savings wherever possible, and free-up budget to spend on the things they need and want for their family.”

 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Habito
House purchases fall as remortgaging drives lending growth – UK Finance

Mortgage lending grew 4.9% in February to £19bn year-on-year, however this appears to have been driven by a rise in...

Close