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The eye-watering £23,000 cost of having a baby – and it's not nappies or prams to blame

The eye-watering £23,000 cost of having a baby – and it's not nappies or prams to blame

New research breaks down the financial impact of having a baby, including more than £20,000 in lost earnings during statutory leave.

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MadeForMums

Published: September 29, 2026 at 11:37 AM

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Having a baby is one of life’s biggest milestones, but new research suggests the financial impact can be significant, with the average cost estimated at £23,263.41.

Research from Compare the Market found that lost earnings during statutory maternity and paternity leave account for the vast majority of this figure, rather than the cost of buying things for a new baby.

The study also found that 10% of UK adults consider parenthood the life milestone with the single biggest impact on their finances.

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How much does having a baby cost?

According to Compare the Market’s research, an estimated £23,263.41 is the average financial impact of having a baby during their first year.

The research breaks the figure down into average lost earnings alongside the cost of essential items and expenses.

Maternity earnings loss, 39 weeks: £19,358.64
Consumables and food: £1,107.96
Paternity earnings loss, two weeks: £1,145.36
Hospital bag and nursery: £568.69
Maternity and preparation: £316.50
Travel and mobility: £284.90
Feeding and weaning: £233.93
Apparel and play: £163.44
Skincare and health: £83.99

Lost earnings make up the biggest cost

It’s easy to focus on the cost of things you need to buy for your baby, but it’s also worth considering how your household income could change during maternity or paternity leave.

Charlie Evans, personal finance expert at Compare the Market

The research found that £20,504 of the estimated £23,263 financial impact comes from earnings lost during statutory maternity and paternity leave.

That means around 88% of the overall figure is attributed to income that parents may go without during statutory leave, rather than direct spending on baby essentials.

Charlie Evans, personal finance expert at Compare the Market, says parents should consider how their household income could change alongside the costs of preparing for a new arrival.

"Having a baby is a very exciting time for families, but it’s also natural for parents to think about how their finances might change," he says. "It’s easy to focus on the cost of things you need to buy for your baby, but it’s also worth considering how your household income could change during maternity or paternity leave."

“Thinking about these changes early, working out what you’re likely to have coming in and going out, and leaving some room in your budget for unexpected costs can help you feel more prepared financially as you get ready to welcome a new arrival.”

Baby essentials can add up too

While lost earnings account for most of the estimated cost, the research also highlights the expense of preparing for a baby.

Consumables and food, including nappies, wipes and instant formula, were the biggest physical expense, at an average of £1,107.96.

Meanwhile, nursery equipment, maternity preparation, travel systems, feeding equipment, skincare and clothing add up to £1,651.45 before consumables and changes to household income are considered.

The study notes that its calculation does not include childcare or nursery fees, discretionary employer maternity top-ups, tax and National Insurance deductions, or secondary nursery furniture.

How can parents prepare financially for a baby?

Charlie Evans recommends looking beyond the headline cost and considering how household finances could change once a baby arrives.

His tips include:

Research potential costs: Consider both upfront and ongoing expenses to create a more realistic financial plan.
Set a realistic budget: Look at your current income, outgoings and other financial commitments rather than focusing solely on a savings target.
Plan for unexpected costs: Keeping some additional funds available can provide a financial safety net.
Review your finances: Consider savings, debts and monthly spending before making a major financial commitment.
Understand funding options: If considering savings, borrowing or a combination of the two, compare the costs and consider what fits your circumstances.

The research was based on a nationally representative survey of 3,000 UK adults conducted by Censuswide for Compare the Market between 3 and 9 July 2026. Compare the Market says its baby-cost calculation combines direct physical expenses with parental earnings lost during statutory leave.

MadeForMums has a guide on how to grow a baby fund in 9 months to help you afford pregnancy.

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