In August, Child Poverty Action Group and the Church of England published a report, Poverty in the Pandemic, which offered a glimpse into the lives of low-income families trying to survive the impact of the coronavirus pandemic. This report provides an update on how families with children are managing financially, based on an additional 393 online survey responses received in the period since the last report was published, up to the end of November 2020.
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.
Coronavirus has turned the lives of families with children upside down. Many parents have lost jobs or been furloughed and many schools and childcare facilities have largely been closed, leaving those still in work facing the impossible task of balancing work with childcare and home schooling. These challenges are particularly acute for low-income families. This new report from CPAG and the Church of England offers an important insight into the day-to-day struggles that families have been dealing with, as well as their strength and resilience in managing such an array of challenges on a limited income.
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.
CPAG and the Church of England has produced a new report on the impact of the two-child limit after three years. Since 6 April 2017, families having a third or subsequent child are no longer entitled to additional support through child tax credit and universal credit.
This report has been developed by the A Different Take London panel. We are a group of children, young people and parents with experience of living on a low income, and people from Child Poverty Action Group and the University of Leeds. Between January–June 2019 we have been discussing our own experiences and priorities and talking to the people in our communities, to develop our own agenda around the most important issues affecting the lives of people in poverty and what we think should be done about them.
Tower Hamlets has the highest rate of child poverty in the UK: 57 per cent, after housing costs are taken into account. In 2017, Tower Hamlets became one of the first boroughs in London to become a universal credit ‘full service’ area. The London Borough of Tower Hamlets commissioned CPAG to research the experiences of families with children in receipt of universal credit.
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.