Parents of newborn children have to spend an extra £700 a year if they want to be ethical consumers, according to a report by Child Trust Fund investment firm, Family Investments.

The company found that it costs parents an extra £700 to buy eco-friendly baby essentials, such as bio-degradable nappies and organic baby food topping.

John Reeve, chief executie of Family Investments said: “The cost of being a parent is growing and the added pressure now of choosing ethical or organic products can overwhelm parents living on stretched budgets, especially as families learn to cope with the cost of a new baby.

“Family Investments hopes to ease one of the many decisions facing parents by offering an ethical Child Trust Fund that can help parents building up a worthwhile sum, without sacrificing their desire to be ‘green’.”