North East and Teesside families 'still struggling to make ends meet'
1 in 4 parents with young children are 'in the red' due to high bills
We are hearing how many families across the North East and Teesside are still struggling to make ends meet.
A new report released has been studying the financial impact of the cost-of-living crisis since February 2022. It has found that the extended length of time people across the UK have had to deal with increases in interest rates on mortgages, high energy bills and inflated food prices, has left millions of people going into the red, worrying about household bills or having little or nothing by way of savings.
Amanda Bailey, Director of the North East Child Poverty Commission, said: "Often families find they're having to reduce their work hours or find it difficult to find work that's part time or flexible, and on top of that you have really high childcare costs.
"We know those earliest years of a child's life are really fundamental to their development; their social and emotional development, their physical development, their brain development are absolutely crucial period of their lives. We want every family to be able to thrive and for children to have the support they need to thrive to develop heathily and that's not always possible.
"It's unfortunately not surprising and it reflects frankly all the conversations and the work that we do with organisations across the region; whether that's foodbanks, baby banks where growing numbers of families are having to turn to charity to provide what should be basic essentials for their children.
"Families every day are making absolutely awful decisions about what they are and aren't able to afford and in often cases that would be making choices about the number children they're able to have. I know from some of the baby banks we're working with about families terminating wanted pregnancies because they know they can't afford to have another child.
"The research that was published really highlighted the level of debt that families are in and I think that's really concerning for families across the North East. I know from parents and carers that we've spoken to that many are in debt to pay for what should be really every day costs like school meals, school uniform, food and clothing and often that brings a level of anxiety and worry."
The Financial Resilience Report 2024, also highlights how people in their 30s and 40s are feeling the impact of the last two years of the cost-of-living crisis the most. But parents with children under the age of 3 are also badly affected.
The figures, published by mutual pensions provider and insurer Royal London, show people aged between 35 and 49-years-old have the highest average annual personal income, yet 1 in 5 (20%) admit they are close to falling into, or already in, financial crisis, compared to just 13% on average for the sample as a whole.
The report says high interest rates and rising mortgages have hugely impacted people in this age group, with average monthly outgoings rising by £588 per month since February 2023, leaving 34% overdrawn regularly or occasionally or having to borrow money to cover monthly expenses, and almost a quarter (23%) with no savings at all.
It adds that the continued pressure on young families is also reaching crisis point with more than a quarter (27%) of parents with young children under the age of 3 finding themselves overdrawn regularly or occasionally, with 1 in 10 (9%) needing to borrow money to cover monthly expenses.
It also says significant increases in housing, energy bills, food bills and childcare since February 2023 has seen the average family with young children see their expenses rise by over £1,000 a month, leaving around a fifth (18%) of parents with no cash for unexpected bills or emergencies.
The report also highlights how the cost-of-living crisis is not only having a financial impact but an emotional one too. Around a third (31%) of people in the UK are yet to feel too affected by the cost of living, but do feel fearful about the future, with two fifths (40%) of parents with children under 3 feeling lower in mood and a quarter (27%) feeling ashamed about their financial stability.
It adds that it is not surprising that 1 in 10 (10%) of people suggested that cost of living concerns had directly impacted their family planning, but that rises to more than 1 in 5 (22%) of those aged 18-34. Almost 1 in 10 (8%) of people in this age group said they were delaying having children because they didn’t have the money right now.
The Conservatives say if elected, they would halve inflation to ease the cost of living, grow the economy to better-paid jobs and reduce debt by securing the future of public services.
The Labour Party says if elected, they would do tougher spending rules to grow the economy, keeping taxes, inflation and mortgages as low as possible, as well as creating jobs and boosting wages.