Working families struggling to make ends meet, report finds

MILLIONS of families are struggling because of rising costs, higher inflation and a freeze on benefits, a study has revealed.

Research for the Joseph Rowntree Foundation (JRF) found working families with children are facing bigger shortfalls in their household budgets this year.

After-school clubs and swimming lessons are likely to be sacrificed so people can pay for essentials, said a report by the social policy and research charity.

A two-child family with one breadwinner, and one not working, is £120 a week short of reaching a minimum income standard, up by £17 a week from last year, the report said.

The increase in the national living wage is offset by a cut in tax credits and housing benefit and a rise in tax and National Insurance payments, according to the study.

Lone parents and working couples with children are also short of enough money for a decent standard of living

JRF chief executive Campbell Robb said: “Working families are facing bigger holes in their budgets worth hundreds of pounds, despite a higher national living wage and tax cuts. It means millions of families are facing a struggle to make ends meet as the cost of getting by in modern Britain rises ever higher.

“Struggling families tell us as well as juggling the bills, it’s things like afterschool clubs and swimming lessons that must be sacrificed to cover the essentials.

“We need the Government to take action and ensure living standards do not fall backwards.

“Lifting the freeze on working-age benefits and tax credits must be the start, along with allowing people to keep more of their earnings.”