Up to 37% of London children live in poverty

A new study that takes into account the cost of living in London shows that over 1 in 3 children are living in a household that is considered to be below poverty lines. The report considers the costs of rent, food, child care and other monthly bills to calculate this figure.

This rate stands at this level even before some of the safety net programmes are rolled back by the central government, namely housing benefit caps. This means that the percentage is bound to increase over subsequent years unless some type of action is taking to address this crisis according to the not-for-profit Child Poverty Action Group.

The total number of children living in poverty stands at about 700,000. This means that the total income in their home stands at less than 60% of the national median income. Some people may be surprised at this per cent, as it is higher than some other reports. However this latest information takes into account the cost of rent in the city as well as the amount of cash that people need to pay on other bills. Most reports in the past did not accurately account for those outgoing expenses.

London is one of the most expensive cities to live in anywhere in the world. The cost of housing continues to increase at a rapid rate each year. Childcare is another expense that parents struggle to pay. Whether it is a rent or mortgage payment, the costs are going up. There is also a lack of social housing in the city, and many families are even being resettled into outer boroughs or nearby cities.

But the challenge is just not housing. Almost every bill that families need to pay on a monthly basis is very high and also increasing. The price of food is much higher in London, and childcare costs are outrageous. Even with the usage of food banks in London continuing to increase at over 10% per year, families with children are spending more each month to feed their family.

Then there is transportation, energy bills, and other living expenses. In total, just those costs (and not housing) may be hundreds of pounds per month higher than other areas of the UK. As one example, child care alone may be up to £80.00 per week more expensive in London than other UK cities.

The upcoming cuts to benefits will make the cost of living in London even more un-affordable. The Child Poverty Action Group report suggestions that many families will no longer be able to live in private sector housing when their benefit cap is reduced to £23,000 a year. Then, with the lack of available social housing in the city, this could result in even more homelessness or people fleeing.

One way for a family to free up some of their income is to turn more to the food banks in the city. They can provide groceries for all members of the household, including children. This will allow the resident to focus on paying other bills. Find a list of food banks in London.

Those 37% of children from families living in poverty often have difficulty in breaking the cycle too. Experts will say they just need to continue to take on higher paying jobs, so this will help them be able to pay the bills each month. But one major barrier is the cost of child care in London.

Since caring for a kid costs so much more than in other areas of the UK, parents often can’t afford to take on a second job or attend job training programmes for new skills. This prevents them from taking on some of those higher wage jobs. So the solution to these poverty rates is not easy.