A report commissioned by the Child Poverty Action Group (CPAG) in Scotland from the Centre for Research in Social Policy at Loughborough University has found a widening gap between the cost of raising a child in Scotland and actual family incomes, despite the significant impact of Scottish government policies and lower childcare costs.
An update to the report we published at the beginning of 2021 highlighting that delays carrying out assessments for disability benefits meant that many disabled people were not receiving or were losing support intended to help them meet the additional costs of their disability.
This report highlights that delays carrying out assessments for benefits mean that many disabled people are not receiving, or are losing support, intended to help them meet the additional costs of ill health or disability.
The year 2020 has put unprecedented pressures on families bringing up children. Parents across the world have taken on new challenges due to the coronavirus pandemic in keeping their children healthy and safe as well as properly fed, educated and entertained at a time when they have been required to stay at home, and when many families’ livelihoods have been threatened. Our cost of a child report looks at what items families need to provide a minimum socially acceptable standard of living for their children in 2020.
Prior to COVID-19, there were more than four million children living in poverty in the UK – that’s nine children in a classroom of 30. In London, that number rises to 11. While the full economic impact of the pandemic is yet to be seen, we know that low-income households are bearing the brunt, and for families living in the capital things are likely to get worse before they get better. Even prior to COVID-19, the high cost of rent, childcare and travel made it very difficult for London families on low incomes to cover basic costs. In addition, families with children have been hit the hardest by cuts to the social security system, squeezing family budgets even further. In the face of this, our public services have a crucial role to play in tackling child poverty and ensuring children and families recover from the pandemic.
This report concentrates on the impact of COVID 19 on families living in Scotland and highlights that many families are struggling financially due to inadequate support from the social security system and/or being unable to work while schools and childcare providers are closed.
Our annual Cost of a Child report this year finds that the overall cost of a child up to age 18 (including rent and childcare) is £185,000 for lone parents (up 19% since 2012) and £151,000 for couples (up 5.5% since 2012). The gap between lone parents’ actual income and what they need to meet family needs has grown sharply: lone parents working full time for the so-called national living wage ('NLW') are 21% (£80 a week) short of what they need – after paying for rent, childcare and council tax - a gap that has more than doubled from 10% since 2012.
Financial support to low income families to pay for childcare through working tax credits is being replaced by the childcare element of universal credit. This Early Warning System report examines the impact of this change on parents and childcare providers.
Our Cost of a Child in 2017 report calculates the cost of raising a child in the UK based on the minimum income standard (MIS). MIS is the income needed to give children an acceptable minimum living standard as defined by the public. It is calculated with reference to a basket of goods and services that the general public specifies as necessary to meet family needs. Years of austerity have reduced public expectations of what constitutes essential spending, but the report shows many families still face a big gap between what they need for a no-frills living standard and their income.