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The Independent UK
The Independent UK
National
Sam Blewett

Minimum wage still not enough to give families a basic 'no frills' lifestyle, says charity

The cost of raising a child to the age of 18 is estimated at £150,800 ( PA )

Parents working full time on the minimum wage are still not earning enough for an acceptable standard of living, according to new research.

Couples raising two children are falling £49 a week short of being able to provide their family with a basic “no frills” lifestyle, it is claimed. 

Lone parents are faring even worse, with a 20 per cent deficit in their weekly budget, say the Child Poverty Action Group (CPAG).

The charity’s Cost of a Child Report, published on Monday, found that increased minimum wages were offset by a freeze in tax credit support.

It blamed rising prices, the bedroom tax, freezes to benefits and tax credits and the roll-out of Universal Credit for hitting “family budgets hard”.

Alison Garnham, chief executive of CPAG, called for an increase in the national living wage to allow families to provide a standard of living defined as acceptable by public opinion.

“There is strong public support for government topping up the wages of low-paid parents and investing in children is the best long-term investment we can make,” she said.  

“By using the forthcoming budget to unfreeze benefits and restore work allowances, the government can take steps towards making work really pay.”

A government spokeswoman said fewer are living in absolute poverty today and ministers are committed to giving every child the best chance.

“The employment rate is at a near-record high and the national living wage has delivered the highest pay increase for the lowest paid in 20 years, worth £2,000 extra per year for a full-time worker,” she added.

The CPAG report found that the overall cost for a couple raising a first child until they are 18 has fallen from £155,100 to £150,800.

It also showed a small improvement in family budgets since last year, with a couple raising two children at the point they are aged three and seven falling 11 per cent short each week instead of 13 per cent short.

PA

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