Parents fork out more than £2,500 to cover school holiday costs, new data reveals

• More than half (51%) of UK parents admit they’ve had to dip into their savings to cover the cost of summer holidays
• More than 2 in 5 (44%) have had to cut back on personal spending to afford the costs
• Holidays, food, and holiday clubs cost parents an average of £1,207 in the summer holidays
• Meanwhile school trips, extra curricular activities, and after school clubs set parents back an average of £430 in term time
• Despite prices, 89% of parents believe it’s important for their children to participate in extra curricular activities

Parents and guardians across the UK spend an average of £2,599 on summer holiday costs per child.

That’s according to new research from Confused.com, which found that the cost of school holidays has resulted in more than half (51%) of UK parents using their personal savings to cover these expenses.

This figure includes a wide range of costs, such as family holidays, day trips, childcare, clothes and food.

For many families, the financial impact could be even higher. That’s as the average number of children per family in the UK is 2¹, meaning that the average family could be spending £5,198 on summer holiday costs.

Meanwhile, for the 17% of parents with three children in the family, summer holiday spending could come to an average cost of £7,797.

But the spending doesn’t stop when the holidays end. Back to school essentials are also costing parents £1,007 on average per child. This cost covers essentials like new uniforms, after-school clubs, and school meals.

With children off for 6 weeks, attending out-of-school clubs, and generally needing more entertainment than during term time, the school holidays are proving to be a financially straining time for parents.

While many have had to use savings, more than 2 in 5 (44%) parents have also had to cut back on personal spending to afford the rising summer holiday and extra curricular costs.

Leisure activities (35%) and food shops (24%) are some of the most affected areas, as parents cut their budgets to cover extra expenses over the summer holiday and back to school period.

To manage these costs, over half (51%) of parents are dipping into their personal savings. In addition, 41% are using credit cards to cover costs, while another 18% use buy now, pay later services. The cost of holiday extracurricular activities has left 14% of parents in their overdraft, while 12% admit to borrowing the money from friends or family. Despite money saving efforts, almost 3 in 5 (57%) parents admit to feeling a financial strain during the summer holidays.

For parents who take their families away during the school break, the holiday itself is the single biggest expense, costing an average of around £519 per child. The next biggest cost is food, at an average of £347 per child, followed by holiday clubs, which cost an average of £340 per child.

When it comes to back to school spending, school trips (£151), extra curricular activities (£146), and after school clubs (£134) top the list of the most expensive back to school costs.

Despite these high costs, 89% of parents believe it’s important for their children to participate in extra curricular activities. The most popular choices for children aged 4 - 18 include sports (66%), music (36%), and technology (31%).

As parents want the best for their children, it’s easy for them to feel pressured when it comes to spending. Over half (51%) of parents feel this pressure because they want their child to be healthy, fit, and active. This is followed by 46% of parents who spend more simply because their child has expressed interest in certain activities. More than 2 in 5 (41%) parents also want their child to learn new skills and 30% want to give their child the opportunity to make friends and fit in. This all results in an increase in spending on school holiday extra curricular activities.

Jessica Willock, personal finance expert at Confused.com commented: “For many families, school holidays, extra curricular activities, and back to school essentials are becoming increasingly expensive. With more options available than ever before, it’s understandable that parents want to seize every opportunity for their children, but at what cost?

“With personal and household spending habits taking a hit to keep up with school and holiday associated costs, some parents are weighing up which of their finances can be compromised to compete with their children's activity and school expenses.

“However, it’s important to understand that costs for extracurricular and holidays can quickly add up - especially for households with more than one child. That’s why setting a clear budget and allocating costs for each activity or necessity for your child is important. Planning ahead and setting aside a steady, affordable amount each month can also relieve some of the pressure when the holidays hit.

“Knowing how much you can spend will help to avoid overspending and having to sacrifice other essentials in your life to cover holiday and back to school costs”.

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Notes to editors