Children do not come cheaply with new figures revealing that the cost of raising child from birth to adulthood - including the university years - rising to an average of £165,668, new figures show.

Parents fork out £7,889 every year, £657 a month or £22 a day to pay for the 'essentials' for their children up to the age of 21.

Childcare is the most expensive outlay, costing an average at £46,000. This includes £30,888 in nursery costs for parents who work full-time, and a further £11,366 for after school and holiday care for those aged five to 11.

Education is also an expensive business with state education costing £37,000 including uniforms, trips and extra curricular activities.

Those who choose to educate their children privately can expect costs to soar with parents having to pay a further £122,713 to take the overall cost of raising a child to £288,382.

The introduction of tuition fees means the university years will do little for a parent's balance, with the total cost for three years adding on another £25,572.

Other essential items also add up over the years with £15,630 going on a child's food, £12,109 on holidays, £12,055 on clothing, £9,369 on hobbies and toys, and £5,170 on pocket money.

The survey by Liverpool Victoria has increased by 7.8 per cent from last year and is 18 per cent higher than in 2003.

Inner London is the most expensive place to raise a child with costs reaching £176,449 but parents in Scotland and the West Midlands fare slightly better paying out around £159,000.

Ian Cordwell, Liverpool Victoria group marketing director, commented: "It is no secret that Britain has a high cost of living, and the cost of raising a child to 21 underlines this point.

"Education alone can be a substantial expenditure, and we would encourage all parents-to-be to think through carefully the amount they need to save for raising a family."