Parents across the UK are feeling the pinch of the cost-of-living crisis, with it affecting their ability to pay for food, bills and socialising for many.
Some UK towns and cities are more expensive to live in than others, due to regional differences such as average monthly salary, the cost of childcare and average accommodation costs based on mortgage repayments or rental prices.
These contrasts in living costs could lead some parents to be priced out of cities or face the risk of going into debt by raising children in areas which are simply too unaffordable for their income.
A recent study found that 45% of parents that earn more than the average UK salary don’t feel that they have enough income to save for their children’s future.
In response to this, Creditfix has analysed four key regional data points across the most populated UK towns and cities to determine the locations where working parents are likely to have the most disposable income – and the least.
The figures below are based on children being under the age of 3, in full-time nursery, and attending 50 hours per week.
Single vs joint income
Co-parents who live together with joint income benefit financially from being able to split costs such as childcare, and rent or mortgage payments, whereas working single parents often need to take on twice the financial burden for the same lifestyle.
In all cities analysed, co-parents were left with a surplus of disposable income each month, ranging from around £1.5k to over £5.5k for those with a mortgage and £2k to over £6k for those who rent.
However, in 14 of the 100 locations, single parents with mortgages were on negative income and accumulating debt each month after mortgage payments and childcare, before taking into consideration bills, food, socialising and savings.
The cheapest UK cities for working parents to raise a child
Aberdeen was found to be the cheapest city for working single parents with a mortgage, leaving them with £1091.90 disposable before bills, food, clothes and socialising. Single parents renting in the same area fared similarly, with £1,056 left over.
Overall, single parents with children under the age of 3 are best off renting in St Albans, where they could be left with a disposable income of £1,976, higher than that of any single parent with a mortgage or rent payments across the UK.
St Albans also stood out as the cheapest place to live for co-parents with a mortgage, who could be left with over £5,000 each month to spend on bills, clothing and saving.
As a popular London commuter hub, living in St Albans appears to offer a more affordable lifestyle than the capital, which has been excluded from this research due to anomalies caused by inflated prices.
| Cheapest city/town to live in the UK as a single parent | ||||
| Rank | Mortgage: Cheapest city for single parents with children aged under 3 | Renting: Cheapest city for single parents with children aged under 3 | ||
| City/Town | Disposable left after mortgage payments & childcare (£) | City/Town | Disposable after rent payments and childcare (£) | |
| 1 | Aberdeen | 1,091 | St Albans | 1,976 |
| 2 | St Helens | 1,006 | High Wycombe | 1,416 |
| 3 | Darlington | 1,006 | Bristol | 1,251 |
| 4 | St Albans | 1,002 | Solihull | 1,218 |
| 5 | Doncaster | 955 | Rayleigh | 1,160 |
| 6 | High Wycombe | 944 | Basingstoke | 1,083 |
| 7 | Newcastle upon Tyne | 918 | St Helens | 1,074 |
| 8 | Solihull | 903 | Aberdeen | 1,056 |
| 9 | Chester | 902 | Warrington | 1,054 |
| 10 | Leeds | 901 | Sale | 1,047 |
| Cheapest city/town to live in the UK for co-parents | ||||
| Rank | Mortgage: Cheapest city for co-parents with children aged under 3 | Renting: Cheapest city for co-parents with children aged under 3 | ||
| City/Town | Disposable left after mortgage payments & childcare (£) | City/Town | Disposable after rent payments and childcare (£) | |
| 1 | St Albans | 5,707 | St Albans | 6,681 |
| 2 | High Wycombe | 4,779 | High Wycombe | 5,251 |
| 3 | Bristol | 4,569 | Bristol | 4,934 |
| 4 | Solihull | 4,169 | Solihull | 4,484 |
| 5 | Basingstoke | 3,950 | Rayleigh | 4,469 |
| 6 | Cheltenham | 3,842 | Basingstoke | 4,412 |
| 7 | Aberdeen | 3,738 | Cheltenham | 4,209 |
| 8 | Rayleigh | 3,735 | Colchester | 4,209 |
| 9 | Leeds | 3,735 | Sale | 4,032 |
| 10 | Chester | 3,697 | Bedford | 4,032 |
The most expensive UK cities for working parents to raise a child
Single working parents with a mortgage in Brighton were found to be the worst off financially across the UK, potentially left with nothing after mortgage and childcare costs each month other than an accumulating debt of over £900.
For co-parents who live together, having a mortgage in Brighton would also leave them with the lowest disposable income each month, with a joint £,1758 available for bills, socialising, food shops and saving.
For a single parent who rents, Luton would be the most expensive place to live, leaving them to accumulate £43 in debt each month after accommodation and childcare costs.
| Most expensive city/town to live in the UK as a single parent | ||||
| Rank | Most expensive with a mortgage | Most expensive renting | ||
| City/Town | Disposable left after mortgage payments & childcare (£) | City/Town | Disposable after rent payments and childcare (£) | |
| 1 | Brighton | -963 | Luton | -43 |
| 2 | Cambridge | -530 | Brighton | 52 |
| 3 | Worthing | -529 | Nottingham | 77 |
| 4 | Oxford | -512 | Eastbourne | 121 |
| 5 | Hastings | -400 | Oxford | 131 |
| 6 | Eastbourne | -395 | Worthing | 134 |
| 7 | Hemel Hempstead | -250 | Manchester | 166 |
| 8 | Exeter | -184 | Stevenage | 193 |
| 9 | Watford | -112 | Hastings | 212 |
| 10 | Luton | -96 | Crawley | 221 |
Renting could be more affordable for parents in the short-term
For single parents with a mortgage in Oxford; renting in the same area would be a more affordable option for single parents, leaving £131 disposable instead of accumulating £512 in debt after accommodation and childcare costs.
In most cities where single parents with a mortgage appear to be mounting debt, a more affordable option would be to rent.
The data found that in 73 of the 100 towns and cities, both single and co-parent households across the UK could have more disposable income each month if they pay rent rather than mortgage parents.
Interest rates hit a new 15-year high recently, which could significantly impact lifestyle affordability for parents coming to the end of fixed-rate deals.
However, mortgage chaos can also lead landlords to implement rent rises, leading to a spiral of rising costs for all parents. Recent statistics showed that UK rents have grown at the fastest pace for seven years.
Our research suggests that if short-term disposable income is a top priority for parents, renting may be a better option than investing in property and a mortgage. However, the data is based on regional averages and medians, and will depend on individual circumstances.
Cost of being a parent in the UK calculator
Estimated Results
Estimated left at the end of the month
£
Where can I get more advice on Priced out parents: How the cost of having kids differs across UK cities and other debt solutions?
To discuss your options and get the support you need to deal with your debt today, contact us now on 0800 0431 431 or click the button to get started
Methodology
Creditfix analysed the most populated UK cities against 4 key regional data points:
- average salary according to ONS
- average monthly mortgage repayments for a terrace property in the city, based on a 5-year fixed mortgage with 10% deposit
- median rent for a 2 bedroom property according to Home.co.uk, and
- average monthly cost of full-time (50 hours a week) childcare at nurseries in each region, according to the Family & Childcare Trust.
To determine the cost of being a parent in each city, a total of the regional costs relevant for single or co-parents, who rent or have a mortgage in each city was calculated, then this total was deducted from the average monthly salary to determine disposable income.
Data is correct as of May 2023.
