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By Rachel Lawler

 

The cost of raising a child in 2017 has reached £75,436, excluding housing, childcare and council tax, according to a from the Child Poverty Action Group.

 

This is a 4% increase on 2016, according to the charity. Child benefit and child tax credit rates have not increased since 2015 and two parents earning the current National Living Wage of £7.50 an hour would fall 13% short of the funds needs to meet this cost – which Child Poverty Action Group says merely meets the “no-frills living standard” for children.

Cost of living rising

Professor Donald Hirsch, author of the report, said: “After a lull in inflation, the cost of essentials is once again rising. For the first time in post-war history, these cost increases are not being matched by increases in support given to families from the state.”

 

The report warned that families who are unable to meet this cost will need the support of families, or face going into debt or enduring “serious hardship”.

 

Neil Leitch, chief executive at the Alliance, said that it was “no surprise” that the cost of raising children was rising but, he said, “It is a damning indictment of government policy to learn that increasing numbers of families with parents who are both in work are unable to cover the basic costs of bringing up children”.

 

However, Neil added that report had not fully acknowledged some of the problems with the government’s 30-hours offer. He said: “In spite of recognising that this measure will not work in isolation, the report does not acknowledge the problems of underfunding affecting the 30 hours scheme, which could potentially limit the availability of childcare places and even mean increased costs for parents who are already struggling.”

 

Neil added: "Indeed, parents may well find themselves out of pocket as a result of the scheme, as childcare providers are forced to increase costs elsewhere to make up the shortfall in government funding of the offer.If the government is serious about improving the lives of those who are ‘just about managing’, then they must invest what is needed to ensure that neither providers, nor parents suffer financially as a result of this policy.”