You are here: Home - Saving & Banking - News -

Working families running to a standstill

Written by:
The amount a family of 4 needs to live an acceptable standard of living has risen twice the rate of inflation since 2008, according to the Joseph Rowntree Foundation.
Working families running to a standstill

In order to achieve what the public deems is a socially acceptable standard of living, covering everything from childcare to transport and food to gas bills, a working couple with two children now needs to earn at least £36,800 a year, up by a third since 2008.

The study found that working families have been hit harder by rising costs than many other parts of society, and unless their earnings have risen by 16% above inflation since the UK first fell into recession in 2008, then their standard of living has deteriorated.

Julia Unwin, chief executive of the Joseph Rowntree Foundation, 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.”

A single earner must have an income of a minimum of £16,400, as an average figure across the UK, to afford a minimum acceptable standard of living. While two parents need to earn £18,400 each in order to support themselves and two children.

Unwin continued: “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.”

The research also found that in some areas of life what constituted a ‘minimum standard’ has fallen, with people now accepting a lower budget for eating out and exchanging Christmas and birthday presents.

Meanwhile, items such as computers and the Internet are now seen as necessities for all working-age families, a notable change since 2008.

Donald Hirsch, co-author of the report, added: “Parents have not changed their view of most needs, including a nutritious diet and participation by children in activities vital for social inclusion. What has changed is the ability of many families to afford such essentials.”

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Are ETFs an effective way to invest in fixed income?

As the commodities market takes the rap for an extremely uncertain time in the market - fears sparked off of...