Families hit as child costs rise

Source BBC News@ tienganhvui.com

18 August 2013 Last updated at 19:00 ET

Families with children are at greatest risk of poverty, says the report

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Families are struggling as the cost of bringing up a child has risen to £148,000, according to research for the Child Poverty Action Group(CPAG).

The report, co-funded by the Joseph Rowntree Foundation, says costs have risen by 4% over the last year.

At the same time it says the value of benefit payments has fallen in real terms.

The government has said such cuts are necessary in order to reduce the UK welfare bill.

But, as a result, the CPAG says parents face a "growing struggle" to provide a decent standard of living for their families.

"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 the last year," said Alison Garnham, the chief executive of the CPAG.

'Perilous act'

The report points out that benefits payments rose by only 1% in April this year, as a result of the government's welfare changes.

It adds that the minimum wage rose by 1.8%, average earnings rose by 1.5%, and child benefit was frozen.

But the cost of living rose sharply for many families, especially for those who need child care.

That rose by 5.9% in the last year, said the CPAG.

In addition many low-income families have seen cuts in housing support, and many non-working families have had to make their first contributions to council tax.

Costs of bringing up a child 2013
	two parent family	lone parent family
source: Child Poverty Action Group/Joseph Rowntree Foundation
Basic cost over 18 years	£81,772	£90,980
Cost over 18 years, including child care	£148,105	£161,260

"The task of making ends meet for families with children has always been hard, but is getting harder," said Katie Schmuecker of the Joseph Rowntree Foundation.

"Balancing family budgets has become a perilous and delicate act for hard-pressed parents," she said.

The government has repeatedly defended its benefits reforms, saying it needs to cut the bill to tax-payers.

It also says the reforms are designed to encourage more people to go out to work.

In January 2013, a report from the insurer LV= suggested that the cost of bringing up a child to the age of 21 in the UK is £222,000.

A report from the US government on August 16th, 2013, said it cost £154,000 to raise a child to the age of 18 in the United States.

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