Around 300,000 families with children are living in poverty in the UK, despite all parents being in full-time work.
Recently published statistics by Action for Children demonstrate the extent to which families across the UK are struggling to make ends meet. This highlights that, although being employed in full-time work, there are still a high number of people struggling with family finances.
Family Debt Statistics
The research from Action for Children found that:
- The average low income family with all parents in full time work would need an extra £168 a week – equating to working an additional 19 hours per week – to make ends meet. 28% of low-income families would need an extra £300 a week, or over £15,600 more on an annual basis in order to get their family out of poverty.
- Over 41,000 (14%) of the 300,000 low-income families working full-time are trapped in poverty due to at least one self-employed adult with very low or negative earnings. In comparison, 5% of Trust Deed Scotland® customers are self-employed.
- Higher housing costs impact low-income families working full-time. With an average payment of £28 per week more required compare to other households with children. Although reduced housing costs would help with finance challenges, this wouldn’t be enough to solve their debt problems. Assuming these housing costs were taken away, 39% of low-income families in full-time work would still struggle with finances and be in poverty.
- 46% of the 300,000 low-income families working full-time are single parent families.
- Alongside all parents increasing their working hours, Action for Children’s research found that many families had additional barriers to work. With 19% of families including a disabled adult, and 17% with a disabled child under 2 years old.
The Money Statistics by The Money Charity estimates the average cost to raise a child in the UK. Their research for February 2024 shows that the cost to raise a child from birth to 18 years old averages at £25.28 per day for a couple; and the average cost for a single-parent family to raise a child comes to £33.54 per day.
Families with Unaffordable Debt
Here at Trust Deed Scotland®, we help Scottish residents to find debt solutions that help them and their families become in control of their finances again. We speak to thousands of parents with unaffordable debt and advice them towards the best solution for their circumstances.
- 74% of Trust Deed Scotland® customers are working full time whilst dealing with unaffordable debt.
- 45% of Trust Deed Scotland® customers are raising one or more child. Meaning, nearly half of our customers have entered a debt solution with at least one child to support. 25% of which are single, single parents or widowed; whereas 64% are married, co-habiting or in a civil partnership.
Every one of these customers are currently undergoing debt solutions such as a Trust Deed or Debt Arrangement Scheme, providing a plan to get out of financial difficulties.
Debt Help is Available
Creating a stable financial future for your family can be easier than you think. Whatever help you need, don’t let your debt become the cause of a divorce.
If you are struggling with family finances, you are not alone. Here at Trust Deed Scotland®, we speak to thousands of parents every year across Scotland who are seeking debt advice.
There are formal debt solutions available to help; we advise you on these solutions so that you can find a path towards a brighter future for you and your family. Our experienced debt advisers will discuss your situation and provide tailored debt advice to help your family.
Get in touch via our WhatsApp Debt Advice service, our Livechat Debt Advice service, or quickly check the debt solutions you may be eligible for by using our Trust Deed Wizard® tool.
Alternatively, call us on 0141 221 0999.