The cost of raising a child in 2024

A new report shows that families on low or moderate incomes are finding it harder to meet basic living standards.  

The cost of raising children has increased and, without changes, many families will continue to struggle.  

The Child Poverty Action Group (CPAG)'s annual Cost of a Child report shows how expensive it is for families to provide a minimum standard of living for their children.  

According to the 2024 report, raising a child to the age of 18 costs: 

• £260,000 for a couple 

• £290,000 for a single parent 

How much can you afford?  

Even if you're working full-time, covering the full cost of raising children can be difficult. 

Here’s a breakdown of the alarming findings  

Families who are not working are in an even worse situation: 

• A family without work and two children has only 39% of the income needed to meet a basic standard of living. 

• A single parent with two children who isn’t working has 44% of the income needed.  

The report shows that families are finding it harder to reach a decent standard of living than at any point since the research began in 2008. 

What’s going wrong?  

CPAG points to rising living costs, which are growing faster than the income families receive from work and benefits.  

Simply having a job isn’t enough for many families to meet the cost of living, which is why benefits are so important. 

What needs to change? 

CPAG recommends three key actions to help families. 

Scrap the two-child limit 

The current two-child limit on benefits puts larger families under financial pressure.  

Like Money Wellness, CPAG believes this policy should be removed to help families cover basic living costs. 

Abolish the benefit cap  

The benefit cap limits how much financial support families can receive, often leaving them struggling.  

Removing the cap would help families, especially those who can’t work, meet their basic needs. 

Increase child benefit  

CPAG suggests increasing child benefit by £20 a week to help more families, especially those who earn just above the threshold for other benefits, improve their standard of living. 

What’s the government doing?  

Alison Garnham, CPAG's chief executive, has urged the prime minister to take action, saying that investing in children through the welfare system is one of the best ways to improve living standards for families.