The True Cost of Having a Baby in the UK: Average Cost of Starting a Family
Planning for a baby? Our guide reveals the true cost of having a baby in the UK, from essential items and childcare to the government support you can get.
Welcoming a baby into your life is an exciting and joyful journey, but it's also one of the biggest financial commitments you'll ever make. From one-off purchases for the nursery to the significant ongoing costs of childcare, preparing financially is a crucial step towards a less stressful and more enjoyable first year of parenthood.
So, what is the true cost of having a baby in the UK today? At Plouta, we believe in empowering you with clear, practical knowledge to help you plan for life's biggest milestones. This guide will break down the expected costs for a baby's first year, outline the essential items you'll need, explain the vital government support available to you, and offer tips on how to budget effectively for your new arrival.
What You Will Learn in This Guide ⤵
The First Year's Cost: A realistic look at the average cost of a baby's first 12 months.
Pre-Planning & Budgeting: How to financially prepare before the baby arrives.
The Essential Shopping List: A breakdown of one-off costs for nursery, travel, and more.
Ongoing Expenses: Understanding the regular costs like nappies, formula, and childcare.
Government Support: A clear guide to Maternity Pay, Child Benefit, and childcare support.
Post-Planning: Thinking ahead to long-term savings for your child.
The Reality Check: The Average Cost of a Baby's First Year
Let's start with the headline figure. Recent analysis from sources like Smart Cells and MoneySupermarket, factoring in one-off essentials and ongoing costs, suggests the average cost of a baby's first year in the UK can be around £7,850.
However, there's good news. Significant government childcare support is being rolled out through 2025, which can reduce this figure substantially for working parents. The final cost is highly variable and depends on your lifestyle, choices, and ability to budget.
Phase 1: Pre-Planning – Before the Baby Arrives
The months before your baby is born are the perfect time to get your finances in order.
1. Understand Your Parental Leave Pay This is the single most important financial step. Your household income will likely drop, so you need to know by how much.
Check Your Employment Contract: Does your employer offer an "enhanced" or "contractual" maternity or paternity pay scheme? This is more generous than the legal minimum.
Statutory Maternity Pay (SMP): If you're eligible, the legal minimum is:
90% of your average weekly earnings for the first 6 weeks.
£187.18 per week (or 90% of your average earnings if lower) for the next 33 weeks.
Statutory Paternity Pay: Eligible partners can get 2 weeks of leave paid at £187.18 per week (or 90% of average earnings if lower).
Maternity Allowance: If you're self-employed or don't qualify for SMP, you may be eligible for Maternity Allowance, paid at £187.18 per week for up to 39 weeks (subject to your National Insurance contributions).
2. Create a "Baby Budget" Work out your expected drop in income during parental leave and start thinking about the new costs. Use a budget planner to track your current spending and see where you can cut back to free up cash.
3. Build Your Emergency Fund Having a cash buffer of 3-6 months of essential living expenses is more important than ever when you have a child. This fund can cover unexpected costs without forcing you into debt.
4. The Essential Shopping List: One-Off Costs This is where a significant portion of the initial expense lies. You can save a huge amount by buying second-hand, borrowing from friends, or accepting hand-me-downs. Here are the essentials and their average costs if buying new in 2025:
| Category | Essential Items | Average Cost Range (New) |
|---|---|---|
| 🚗 Travel | Infant Car Seat, Pram/Pushchair, Baby Carrier/Sling | £600 - £800 |
| 🛌 Nursery | Cot/Bedside Crib, Mattress, Bedding, Changing Mat | £400 - £700 |
| 🍼 Feeding | Steriliser, Bottles & Teats (if bottle-feeding), Breast Pump (if expressing), Highchair | £200 - £400 |
| 👕 Clothing | Vests, Sleepsuits, Outdoor Wear, Socks (newborn to 6 months) | £300 - £500 |
| 🛁 Other | Baby Bath, Changing Bag, Bouncer/Play Mat, Thermometer | £150 - £250 |
| Total One-Offs: | £1,650 - £2,650 | |
Plouta Tip: You do not need everything brand new. Safety items like car seats and mattresses are best bought new, but items like cots, clothes, and changing tables are perfect to buy second-hand from platforms like Vinted, Facebook Marketplace, or NCT Nearly New Sales.
Phase 2: The First Year – Ongoing Expenses
These are the costs that will become part of your regular monthly budget.
Nappies & Wipes: A significant and unavoidable cost.
Average Annual Cost: £150 - £400 depending on brand vs. own-brand.
Formula Milk (if applicable):
Average Annual Cost: £700 - £800.
Food (Weaning): From around 6 months, your grocery bill will increase.
Average Additional Cost: £30 per month.
Classes & Activities: Baby sensory, swimming, or music classes.
Average Cost: £8 - £15 per session.
Childcare (The Biggest Cost): This is the largest variable expense for working parents.
Full-time nursery (50hrs/week) for a child under 2: The average cost in England is now around £239 per week for families eligible for funded hours, and higher without. This still equates to over £12,000 per year.
Childminders: Often slightly cheaper, averaging around £202 per week for full-time care.
Phase 3: Financial Support & Post-Planning
The UK government provides support to help with the costs.
1. Child Benefit
What it is: A regular payment from the government for bringing up a child.
Rates (2025/26):
£26.05 per week for your eldest or only child.
£17.25 per week for each additional child.
The Catch (HICBC): If you or your partner earn over £60,000 (adjusted net income), you'll have to pay back some or all of it via the High Income Child Benefit Charge. The benefit is completely wiped out once one partner's income reaches £80,000.
Plouta Tip: Even if you have to pay the charge, it's often worth registering for Child Benefit for your first child, as it helps you get National Insurance credits towards your State Pension if you're not working.
2. Help with Childcare Costs (England) The government's childcare support scheme is expanding significantly in 2025.
Funded Childcare Hours: From September 2025, eligible working parents of children from 9 months old up to school age will be able to access 30 hours of funded childcare per week for 38 weeks of the year. Eligibility depends on your income. This is a game-changer and can save families thousands of pounds a year.
Tax-Free Childcare: For every £8 you pay into an online childcare account, the government adds £2 (up to £2,000 per child, per year). You can use this to pay for approved childcare.
3. Post-Planning: Saving for Their Future Once the initial whirlwind has passed, think about long-term saving.
Junior ISA (JISA): A tax-free savings and investment account for your child. You can save up to £9,000 per year (2025/26 allowance). Starting early with small, regular amounts can build a significant nest egg for them by the time they turn 18.
What About Private Birth Costs?
While the vast majority of births in the UK are through the excellent, free-at-the-point-of-use NHS, some people opt for private maternity care. This is a significant extra cost.
Average Cost: A standard consultant-led delivery package in a private London hospital can range from £8,000 to £15,000, but this often excludes costs for scans, blood tests, anaesthetists, or extra nights' stay. The total cost can easily exceed £20,000.
Know Where You Stand: Take the Plouta Financial Wellness Survey
Taking our Financial Wellness Survey is a great first step. It will help you reflect on your habits and identify the key areas to focus on in your journey towards financial freedom.
Conclusion: Planning Makes Perfect
Having a baby is a life-changing emotional journey, and it's a financial one too. While the headline figures can seem daunting, a combination of savvy shopping, realistic budgeting, and making full use of the government support available can make the costs manageable.
By understanding your parental leave pay, budgeting for the one-off essentials, and planning for ongoing costs, you can reduce financial stress and focus on the joy of welcoming your new family member.
Get one-to-one financial advice
We’ll find a financial adviser perfectly matched to your needs. Getting started is easy, fast and free.
Disclaimer: This guide provides general information about the costs of having a baby in the UK based on data available as of July 2025. It is for informational purposes only and does not constitute financial advice. Costs, government support, and tax rules can change. Your personal circumstances will significantly affect your costs and eligibility for benefits. Always refer to official sources like GOV.UK and MoneyHelper for the latest information.