Experts say money is main reason UK fertility rate has hit record low: "Children are expensive"

FINANCIAL experts say money is main reason the fertility rate in England and Wales has fallen for a third year in a row and hit a record low.

The total fertility rate across both countries, meaning the average number of children women can expect to have across their child-bearing life, stood at 1.41 in 2024.

That's down from 1.42 in 2023, the lowest since comparable data was first collected in 1938, according to the Office for National Statistics (ONS).

Philly Ponniah, Chartered Wealth Manager and Financial Coach at Philly Financial, said money is a huge factor in women choosing to have less children.

She said: "The financial hit for parents, often women, goes far beyond maternity leave. Many end up cutting hours to match school timetables or stepping back from career progression because childcare and wraparound care are limited or costly. That loss compounds in missed promotions, smaller pensions, and less financial security long term. 

"We still run the economy as if one parent is at home full time, when most households rely on two incomes. Until school hours, childcare, and workplace policies align with modern family life, women in particular will keep paying the price for having children. 

"I see many clients either only having one child or timing a second child to coincide with when the eldest starts school due to affordability. This is financially motivated and even happening in six figure households. The funded childcare hours are term time only and yet most parents need to work full time. The nurseries need better funding but parents also need a workable solution."

Debbie Porter, Managing Director at Bakewell-based Destination Digital Marketing, joked that taking up aviation is a “much cheaper hobby alternative” to having kids.

She said: "As a mother of two, who I can neither send back, nor would want to, I am also firmly committed to the notion that there is another route in life than pro-creating. I took 14 years out of my life to raise my children whilst working very part-time - these were 14 of my 'best years' that punched a huge hole in my career. 

"It drained my savings, removed my earnings ability and ruined my future pension projections, such that I will be working to the very end to make up for the financial hit they personally cost me. 

"On a day-to-day basis, the cost of childcare for me was equal to the earnings I was making for 3 of those child raising years. Now they are late-teens, their job prospects are low making them dependent for longer, and we have the expense of university education ahead. 

"There is no doubt about it, children are expensive. Taking up aviation, horse ownership or international travel are much cheaper hobby alternatives!"

Denni Tyson, Financial Planner at Chester-le-Street-based Pia Financial Solutions, said families are crippled by childcare costs.

She said: "There is absolutely no doubt that financial reasons have played a huge role in shaping family decisions and the declining fertility rate in the UK. The sheer cost of childcare – particularly during the first five years of a child's life – can be crippling for young families. 

"I regularly advise clients to plan ahead for children, given the significant financial adjustment required when factoring in nursery fees and overall disposable income. 

“The free childcare scheme offering funded hours doesn’t even begin to cover the actual costs incurred by nurseries. Supplementary charges are often added, and rightly so – these are necessary to ensure nurseries and childminding facilities can continue to provide adequate care.”

Pete Mugleston, Mortgage Advisor & Managing Director at Derby-based onlinemortgageadvisor.co.uk, said a “perfect storm” was leading to lower fertility rates.

He said: "People are having fewer kids because it just doesn’t feel affordable anymore. Both parents often need to work just to cover housing costs, childcare is sky-high, and inflation has eaten into disposable income. 

"At the same time, an ageing population means today’s workers are carrying a heavier tax burden to fund pensions and healthcare. It’s a perfect storm that leaves many younger families feeling they simply can’t afford to have as many children as previous generations."

Scott Gallacher, Director at Leicester-based Rowley Turton, added: "It’s no surprise fertility rates are falling. Many people now prioritise education and careers, which pushes starting a family later – sometimes until it’s sadly too late. On top of that, the sheer cost of modern life is a huge deterrent. 

“Getting on the property ladder often requires two full-time incomes, but maternity leave is limited financially, and childcare costs are sky-high. For many couples, the sums just don’t add up. Until the government tackles the affordability of housing and childcare, it’s hard to see fertility rates bouncing back.”