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.
Lots of attention is given to the number of children in poverty but as a society we do not only care about the rate of poverty but also the depth of poverty. If everyone in poverty is very close to the poverty line we should perhaps worry less than when millions of people are substantially below the poverty line. A good way to measure the depth of poverty is the median poverty gap, which indicates how far below the poverty line the average family in poverty is.
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.
CPAG, the Church of England, Women's Aid, Turn2Us and the Refugee Council have published a new report looking at the impact of the two-child limit. An estimated 160,000 families have already been affected by the two-child limit to date; the majority are working families and the majority have just three children. More than 800,000 families and three million children could eventually be affected by it, while a third of all children will be affected in many constituencies across the country.