With 8.8 million children in the UK aged between 5 and 16, parents will rack up costs of more than £8 billion during the six-week summer holiday period.

However, there is a change in the way parents are spending money. Costs will break down into: £156 on childcare, which is significantly less than last year (£390), £426 on feeding each child, a 25 per cent increase on last year (£340) and £415 per child on days out, buying games/DVDs, activities and other entertainment. This has seen the biggest increase, up by two thirds on last year’s figure of £246.

More than two in five parents admit they are worried about how they are going to meet the cost of the school holidays. Around a quarter will use credit cards or personal loans, another quarter will raid their savings, while the remainder will use money in their current account.

Louise Lovelock, Nationwide’s Head of Savings Customer Proposition, comments: “While the summer holidays are a favourite time of year for kids, they can often create a financial headache for parents because, when school’s out, the cost of family life inevitably rises.

“However, summer doesn’t necessarily have to mean stress. Putting a small amount away each month in a savings account can help take some of the strain out of the holiday period become less prohibitive and allow parents to enjoy some quality time with their children without the financial headache.”