Working families are not feeling the benefit of national living wage, claims a new study, leaving them stuck with a no-frills standard of living.
The Child Poverty Action Group (CPAG) found that rising prices and a combination of benefits and tax credit freezes alongside the benefit cap and two-child limit, the bedroom tax and the Universal Credit roll-out have made families feel the pinch.
And despite pay rises in recent years, including the adoption of former Chancellor George Osborne’s national living wage at £7.83 an hour for over-25s, it is yet to have an impact on low and modest income families.
Rising prices, benefit freezes, the benefit cap, two-child limit, bedroom tax, cuts to housing benefits and the rolling out of universal credit have all hit family budgets #costofachild https://t.co/okMl3T1d56 pic.twitter.com/dHNKE8f4nc
— Child Poverty Action Group (@CPAGUK) August 20, 2018
The charity estimates that the cost of raising a child over 18 years as £150,753 for a couple and £183,335 for a lone parent, taking into account rent and childcare.
Though this does represent an improvement from last year when couples faced a cost of £155,100. The deficit they face has also dropped from a 13 per cent shortfall to an 11 per cent – or £49 per week – shortfall of achieving an acceptable, no-frills living standard.