What’s driving the rising cost of keeping a pet?

22nd April 2026

Pet ownership costs in the UK are rising sharply—especially for vet bills and food, while insurance is becoming more competitive but still shaped by rising claims costs. Prospective owners should budget carefully and expect higher, less predictable expenses.

Veterinary bills
The biggest pressure
Vet costs have risen dramatically across the UK.

Veterinary treatment costs have increased by about 60% over the past eight years.

Inflation in vet services hit 10.7% in February 2024, outpacing general inflation.

Routine treatments have become more expensive: a simple booster has risen nearly 50% in four years.

Emergency care is especially costly, with out‑of‑hours consultations averaging £269, and complex treatments running into thousands.

Why it’s happening
Advanced medical technology, supply chain issues, and consolidation of vet practices (reducing competition) are all pushing prices up.

Pet insurance
slightly cheaper on average, but claims are soaring
Despite rising vet fees, insurance premiums have recently fallen slightly due to competition:

Median lifetime cover: £247/year for dogs, £180/year for cats.

Premiums dropped 1.6% in 2025, with a 2.3% fall in the last quarter.

However, insurers are paying out more than ever:

£1.23 billion in claims in 2024—double the amount a decade ago.

Average claim value: £685.

What this means
Insurance may be cheaper upfront, but rising vet costs mean exclusions, renewal increases, and claim disputes are more common. Complaints to the Ombudsman have risen 25%.

Pet food costs - steady increases
While not rising as fast as vet bills, food is still a major ongoing cost.
Typical annual food costs (2025 estimates):

Dogs: £400–£1,000/year.

Cats: £300–£600/year.

Premium brands, special diets, and larger breeds push costs higher.

What should new pet owners budget for?
Annual cost ranges (UK, 2025):
Dogs: £1,000–£2,500/year (not including emergencies).

Cats: £500–£1,400/year.

First‑year costs (including setup):
Dogs: £2,000–£5,500.

Cats: £1,200–£2,800.

Emergency fund recommendation
Keep £1,500–£4,000 aside for unexpected vet bills.

Key considerations before getting a pet
Can you afford rising vet costs, even with insurance?

Do you have an emergency fund for sudden illness or injury?

Is insurance right for you, and do you understand exclusions?

Can you commit to long‑term costs (cats: up to £24k lifetime; dogs: up to £33k depending on breed)?

Are you prepared for regional price differences? London/Southeast can be 20–40% more expensive.