Cost of raising a child increases

Published: 22.08.13

The cost of bringing up a child has risen by four per cent in the last year to £148,000.
Cost of raising a child increases

Research from the Child Poverty Action group (CPAG) found that the increase in the cost of raising child to the age of 18 has increased well above rises in earnings and benefits.

The value of child benefit andchild tax credit relative to the costs of raising a child has decreased in thelast year and many low-income families have also seen cuts inhousing support. At the same time, manyworking parents have faced rising childcare costs.

Those families that receive out ofwork benefits experience an even greater shortfall of income with couplesreceiving only 58 per cent of the amount they need to cover basic living costswhile lone parents receive 61 per cent.

Whilst the introduction ofuniversal credit later this year will have mixed results, for those parentsworking full time on minimum wage the new system will still leave them some wayshort of an acceptable standard of living according to CPAG. The charityconclude that families with children tend to fall lower down the incomedistribution and are at higher risk of poverty than those without.

Alison Garnham, ChiefExecutive of Child Poverty Action Group, said:
“Thisresearch paints a stark picture of families being squeezed by rising prices andstagnant wages, yet receiving ever-diminishing support from the government overthe course of the last year. Every parent knows it’s getting harder to pay forthe essentials their children need, and they don’t feel like politicians seethem as a priority. Child benefit and child tax credit have been cut at thevery time families need them most. Families are getting worse off and parentsknow it.”