University fees and childcare are biggest sources of expenditure, a survey finds, as total cost of raising a child to 21 hits £222,000

The cost of raising a child to the age of 21 has reached £222,000, with parents paying 58% more than a decade ago thanks to the spiralling cost of education, according to an annual study.

University fees and childcare costs remain the biggest sources of expenditure, with 76% of parents reporting they have been forced to make cuts to meet the financial demands of raising their offspring, insurer LV= found.

The overall figure is more than £4,000 up on 2012 and £82,000 more than 10 years ago when the first annual Cost of a Child Report – then compiled by the Centre for Economics and Business Research – was published.

The cost of education, including uniforms, after school clubs and university (but not private school fees) has rocketed from £32,593 to £72,832 per child in the past 10 years – a 124% increase. Childcare costs have increased by 61% from £39,613 in 2003 to £63,738 today.

From birth to the age of 21, parents spend an average of £19,270 on food and £16,195 on holidays per child. Parents reported feeling under pressure to keep up with the latest technological advances, even for children as young as three years old.

More than a quarter of parents (27%) had bought their child an electronic gadget in the past 12 months, with 16% buying a laptop or tablet computer. The average yearly amount parents spend on these gadgets for their child is £302.

The survey found costs have risen in all areas of expenditure apart from clothing, which has seen a 5% drop since 2003.

LV= spokesman Mark Jones said: "The cost of raising a child continues to soar and is now at a 10-year high. Everyone wants the best for their children, but the rising cost of living is pushing parents' finances to the limit."

He added: "There seems to be no sign of this trend reversing. If the costs associated with bringing up children continue to rise at the same pace, parents could face a bill of more than £350,000 in 10 years' time."

Of the three-quarters of parents who are economising to cope with the increases, more than a quarter (27%) are cutting back on essentials such as food, 68% are buying cheaper goods, and 56% are using vouchers and discount codes.

The most expensive areas to raise children over the past decade remain London (£239,123), the south-east (£237,233), and the east of England (£233,363). Families in the south-west have seen the biggest rise in costs, and are now paying £100,077 more per child than they were 10 years ago.