Cost of raising a child rises by 4 per cent in a year

The cost of living rose by 25 per cent between 2008 and 2013. The cost of childcare, "the most expensive item purchased by many families with small children" rose by 37 per cent during the same period, over twice the official inflation rate. At the same time, family income has only risen by five per cent since 2008.

The introduction of universal credit from October this year will have mixed results for families, the charity says.  However, for both couple and lone parents working full time on the minimum wage, the new system will still leave them some way short of an acceptable standard of living. Many low-income families have also seen cuts in housing support with the introduction of changes such as the ‘bedroom tax’.

Alison Garnham, chief executive of CPAG, said, ‘This research paints a stark picture of families being squeezed by rising prices and stagnant wages, yet receiving ever-diminishing support from the government over the course of last year.’

The research reveals that families with children tend to fall lower down the income distribution and are at higher risk of poverty than those without. It now costs a minimum of £148,000 in total to bring up a child to age 18 as well as meet their minimum needs. These needs total up to £160 a week.

Ms Garnham added, ‘Every parent knows it’s getting harder to pay for the essentials their children need, and they don’t feel like politicians see them as a priority. Child benefit and child tax credit have been cut at the very time families need them the most. Families are getting worse off and parents know it.’

An analysis of 2011/2012 income distribution shows that 61 per cent of families in the bottom income quintile would like, but are unable to afford to take their children on holiday for one week in a year.  

CPAG argues that child poverty has long lasting effects on children. Growing up in poverty means being cold, going hungry and not being able to join in activities with friends.

Katie Schmuecker, policy and research manager at the Joseph Rowntree Foundation, who co funded the research, said, ‘The risk and costs are enormous. Child poverty costs the treasury £29bn a year – a price we can scarcely afford to pay, particularly in the current economic context.’

Ms Garnham added, ‘If every child in Britain can grow up healthy, well-educated and an active participant in their community, we all benefit from a more prosperous economy. This was well understood by the post-war generation who prioritised universal benefits for all the children despite being in much deeper debt than we are in today.’