Counting the cost of kids

It was recently reported that the cost of raising a child from birth to the age of 18 can reach £96,905. The current economic downturn, and the rising cost of essentials above inflation have both contributed to this figure. Having a family has become increasingly costly and financial pressures intensify when housing payments and childcare costs are included.

The cost of childcare, in particular, can be one of the largest monthly outgoings for families. We will soon release our 2014 Childcare Cost Survey, and early indications show that costs have risen once again over the last year.

On the contrary, financial help with childcare costs is one of many family entitlements which has recently been reduced, cut or frozen. In the past, benefits such as Tax Credits or Child Benefit have risen in line with inflation, but over the last three years the percentage of the basic cost of childcare covered by these benefits has decreased.

With the cost of living continuing to rise above both inflation and most wage increases, many families are struggling to make ends meet. It is not surprising that rates of in-work poverty have risen in Northern Ireland. The reduction of benefits and entitlements, which were intended to supplement family incomes, has left many parents in difficult circumstances.

In addition, the high cost of childcare can also take up a large proportion of a family’s disposable income, forcing some parents to sacrifice essential items such as food and heating. This is detrimental to the family’s basic standard of living and undermines the role of work in creating economic stability.

As a charity we work with local families to make them aware of all of the financial support available to them, and we also offer advice on help with childcare costs. Our services are free and confidential so, if you know of any families who would benefit from speaking with one of our advisors, tell them to contact us on 0800 028 6538.