High cost of living hits families hardest - Money - News - Moneyfacts

News

High cost of living hits families hardest

High cost of living hits families hardest

Category: Money

Updated: 11/07/2012
First Published: 10/07/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Hard working families with children are being hit hardest by the ever increasing cost of living.

Couples with two young children need to earn a combined salary of at least £36,800 (£18,400 each) to provide a socially acceptable standard of living for themselves and their families. This is a rise of almost a third compared to four years ago.

Shockingly, around a quarter of the UK 's population live below the minimum income standard, a massive three million more than in 2008.

The research, from the Joseph Rowntree Foundation (JRF), suggests that although people haven't changed their perception of what an acceptable standard of living is, everyday costs such as childcare and transport are stretching working households to their limit. It is thought that cuts to tax credits have had a significant impact and have increased minimum earning requirements, as parents try to compensate losses.

Julia Unwin, chief executive of the JRF, said: "Families have a monumental task trying to earn enough to get by. Parents facing low wages and pressure on their working time have little prospect of finding the extra money they need to meet growing household expenses.

"This year's research shows that a dangerous cocktail of service cuts and stagnating incomes are being keenly felt by parents. Many working people face the risk of sliding into poverty. It illustrates how anti-poverty measures are needed to address not just people's incomes but also the costs that they face."

Find the best savings rates for you - Compare savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

77% of Christmas gifts unwanted

Research from Policy Expert has revealed that while Brits spend an average of £424 on presents for friends and family, more than three quarters (77%) of these gifts may be unwanted.

New Year tips to improve children’s money skills

How many have better budgeting as their New Year’s resolution? As with many things, these skills are best learned when young, so Lemonade Money has come up with some tips to help parents make their children more financially savvy.

Money worries lead to Christmas on credit

Money worries are putting Christmas at risk for up to five million Brits, with 10% saying they regularly worry about money in the lead up to Christmas, and the same proportion feeling stressed about how much they are spending.
 
Close