Family budgets are busting

  • Survey shows only 28% of parents think government doing well on cost of living 
  • Parents sometimes forced to use child benefit for essential bills
  • Fallout includes social isolation for children

The cost-of-living crisis is damaging UK family life and the quality of childhood itself as parents struggle with ever higher prices, new research from Child Poverty Action Group (CPAG) shows. While many families are experiencing the squeeze, today’s research shows cost pressures are hitting lower income households hardest. Many parents report sometimes having to use child benefit for bills and groceries and some have had to cut back on children’s activities in the past year leading to their social isolation.   

The charity’s survey of 2,200 UK parents across the income scale found 79% are finding it harder to raise children because of the cost of living compared with two years ago, including 31% who find it “a lot” harder. Among Universal Credit (UC) claimants 85% say it’s harder. 

Almost half (46%) of all parents say they have found it difficult to manage on their budgets in the past year, rising to three in five (62%) for those on UC. Thirty-eight per cent of all parents have at times resorted to using their child benefit for bills and groceries rising to 52% of those on UC.   

Only 28% of all parents think the government is doing well in tackling the cost of living. Half of struggling families (49%) said financial pressures prevent them from spending quality time together as a family, rising to 56% for UC households. 

For children the fallout from inadequate family budgets is stark: Among parents struggling to manage:  

  • 28% say their financial circumstances mean their children experience social isolation (36% UC families) 
  • 1 In 5 (20%) say their children had wanted to or used to socialise with friends but this is no longer affordable  
  • 28% can’t afford swimming lessons for their kids (36% for UC families)  
  • One in four (25%) can’t afford children’s sports clubs (29% UC families) 
  • 26% can’t afford for their kids to learn a musical instrument  
  • 22% can’t afford to have a birthday party for their child/ children 

Amid this pressure on family finances, families report how child benefit helps them. The vast majority of parents receiving child benefit (94%) say they greatly value it and four in five (81%) say child benefit is an important part of their monthly budget that they couldn’t manage without, rising to 88% for UC households. Two thirds (67%) of families receiving child benefit say an increase of £10 per week per child would help their family “a lot” or “somewhat” with the cost of living, rising to 76% among UC households.   

CPAG estimates that in real terms child benefit is worth £5 per week less than it was in 2010 for an eldest child as a result of cuts and freezes. The majority of cost-of-living support over recent years has not been well targeted towards families or accounted for number of children but child benefit would be a useful place to invest further support. 

Director of policy at Child Poverty Action Group Sara Ogilvie said:  

'The cost of living is busting family budgets, undermining family life and increasing the risk of social isolation for kids. This cost-of-living government can and must restore investment in child benefit in the forthcoming Budget so that all parents are able to give their children a fair shot at success.'

Parent quotes 

‘I suppose I'm always in a state of stress every month because of that spiral of getting further into a state each month and obviously that hole getting bigger every month. I am always stressed, probably irritable as well. And the social aspect as well of the things we've had to stop doing. We're not as close to family anymore. And, obviously, we don't socialise with friends because we can't afford those days out, so you feel a bit isolated and alone.’ Parent  

Notes to editors: 

Survation carried out the online survey of 2,200 UK parents aged 18+ with dependent children aged 0-18 between 28th August – 7th September 2026.   

Child benefit has not kept up with the cost of living. It is worth only £27 a week for a first child – that’s £5 lower, adjusting for the increased cost of living, than in 2010. For second and subsequent children, child benefit is only £18 a week, despite CPAG analysis showing that there are only small economies of scale when it comes to children. This means even less of the costs are covered.  

Increasing child benefit by £10 per week would increase living standards for 11,000,000 children, lower the depth of poverty for 3,000,000 children, and lift 400,000 children out of poverty.   

A High Income Child Benefit Charge (HICBC) means child benefit starts to be tapered away once a parent earns £60,000. If the claimant’s income exceeds £80,000, child benefit is cancelled out by the charge.    

Parents who ‘can’t afford’ certain activities for their children include both parents who used to pay for this activity but have had to give it up in the past 12 months due to costs and those whose children would like to do this activity but it is unaffordable for the family.   

Media contact: Jane Ahrends 07816 909302