Increase in child rearing costs requires higher tax credits

Campaigners have called for the government to increase child tax credits and benefits today in light of new figures on how much it costs to bring up a child.

The Child Poverty Action Group was responding to new research by financial organisation Liverpool Victoria which showed that on average parents spend £165, 668 on raising a child from birth to 21.

The figure is eight per cent higher than it was last year and works out at the equivalent of £7, 889 a year, £657 a month or £22 a day. The charity said that despite this income support and child benefit were only due to rise by the standard rate of inflation, which is less than a third of the increase. It called on chancellor Gordon Brown to recognise the extra costs raising a child can bring in his Pre-Budget Report next month.

“This year’s cost of a child figures make a very strong case for the government continuing to increase the child element of child tax credit, giving parents more help with childcare costs and raising child benefit much further,” said Kate Green, chief executive of CPAG.

Cost of a Child from: www.liverpoolvictoria.co.uk