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National Living Wage 'fails to cover families' basic needs' | |
(about 20 hours later) | |
Low-earning parents working full-time are still unable to earn enough to provide their family with a basic, no-frills lifestyle, research suggests. | Low-earning parents working full-time are still unable to earn enough to provide their family with a basic, no-frills lifestyle, research suggests. |
A single parent on the National Living Wage is £74 a week short of the minimum income needed, according to the Child Poverty Action Group. | A single parent on the National Living Wage is £74 a week short of the minimum income needed, according to the Child Poverty Action Group. |
A couple with two children would be £49 a week short of the income needed, the charity said. | A couple with two children would be £49 a week short of the income needed, the charity said. |
But this was better than last year, when couples were £59 a week short. | But this was better than last year, when couples were £59 a week short. |
The National Living Wage is £7.83 an hour for those aged over 25. | The National Living Wage is £7.83 an hour for those aged over 25. |
A government spokesperson said fewer families were living in absolute poverty: "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." | A government spokesperson said fewer families were living in absolute poverty: "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." |
However, the Child Poverty Action Group (CPAG) said gains from modest increases in wages had been "clawed back" through the freezing of tax credits. | However, the Child Poverty Action Group (CPAG) said gains from modest increases in wages had been "clawed back" through the freezing of tax credits. |
Rising prices and changes to various benefit schemes had also "hit family budgets hard", it said. | Rising prices and changes to various benefit schemes had also "hit family budgets hard", it said. |
Funding essentials | Funding essentials |
The CPAG's definition of a "no-frills" lifestyle is based on the Minimum Income Standard, a set of criteria drawn up by the Centre for Research in Social Policy at Loughborough University. | The CPAG's definition of a "no-frills" lifestyle is based on the Minimum Income Standard, a set of criteria drawn up by the Centre for Research in Social Policy at Loughborough University. |
It calculates the income required for a minimum standard of living based on essentials such as food, clothes and accommodation, as well as "other costs required to take part in society". | It calculates the income required for a minimum standard of living based on essentials such as food, clothes and accommodation, as well as "other costs required to take part in society". |
The research centre asks focus groups drawn from a mixture of socio-economic backgrounds what they think a household would have to be able to afford in order to achieve an acceptable living standard. | The research centre asks focus groups drawn from a mixture of socio-economic backgrounds what they think a household would have to be able to afford in order to achieve an acceptable living standard. |
The charity's Cost of a Child report showed that the overall cost for a couple raising a first child until they are 18 also fell from £155,100 to £150,800. | The charity's Cost of a Child report showed that the overall cost for a couple raising a first child until they are 18 also fell from £155,100 to £150,800. |
The cost of bringing up children was heavily influenced by childcare, with full-time childcare accounting for almost half the total sum. | The cost of bringing up children was heavily influenced by childcare, with full-time childcare accounting for almost half the total sum. |
What is the National Living Wage? | What is the National Living Wage? |
The National Living Wage was introduced by then Chancellor George Osborne in his Budget in July 2015. | The National Living Wage was introduced by then Chancellor George Osborne in his Budget in July 2015. |
It came into effect in April 2016, and is £7.83 an hour for workers aged 25 and over, with the aim of increasing it to £9 an hour by 2020. | It came into effect in April 2016, and is £7.83 an hour for workers aged 25 and over, with the aim of increasing it to £9 an hour by 2020. |
Child costs 'substantial' | Child costs 'substantial' |
CPAG's chief executive Alison Garnham said there was "strong public support" for the government to top up the wages of low-paid parents. | CPAG's chief executive Alison Garnham said there was "strong public support" for the government to top up the wages of low-paid parents. |
She urged the government to use November's Budget to "unfreeze benefits and restore work allowances". | She urged the government to use November's Budget to "unfreeze benefits and restore work allowances". |
"Income from work alone is not sufficient to enable some to meet their families' needs to escape poverty and the cost of a child is substantial," she added. | "Income from work alone is not sufficient to enable some to meet their families' needs to escape poverty and the cost of a child is substantial," she added. |