Wednesday 30 January 2019

Praise the Lord for tomorrow is PAY DAY! A day when money goes in and, for a blissful 24 hours, nothing goes out,  and I can have one day when I pretend to have no money worries.  Because, and I can’t find a positive slant on this one, when you move from parenting as a couple to parenting alone you are screwed financially!

The excellent report, The Cost of a Child in 2018 by the Child Poverty Action Group (CPAG) presents data showing that the actual cost of raising a child is higher for lone parents than couples. They calculate that “The overall cost of a child (over 18 years, including rent and childcare) is £150,753 for a couple and £183,335 for a lone parent”. In this report the ‘cost of a child’ is calculated as the difference the arrival of the child has made to the family outgoings. With this definition it’s easier to see why some costs, such a Child Care, have a greater impact for a lone parent, who has less flexibilty and choice,than a couple. What is a surprise is that the financial imbalance continues throughout the child’s life. Or is it? Single mums I meet who have jobs in the care and health sectors often have night shifts and this means paying for overnight child care until their children are quite old. It’s a cost many couples don’t have. From a personal point of view, I know that my earning potential is more limited than when I was married, because working hours, location, ability to travel for work are all contstrained by childcare. Cuts in personal tax thresholds only impact one salary in my home in comparison to two for many of my couple friends. I am sure there are other reasons too,  because the figures look indisputable and the relentless disparity between the ability of lone parent families to cover their outgoings in comparison to families parented by a couple, is a tough read. One finding that hits home for me is this, 

“For families on median earnings, the contrast between lone parents and couple families is particularly pronounced. The former now fall 15%  short of an adequate income even with a reasonably paid job…. For a couple with two young children, on the other hand, median wages produce disposable income 10 % above the minimum.”

I have certainly found it a constant battle to stay afloat. Ex contributes, but it’s less than a quarter of the money that previously came into the home. Even with his contribution, divorce led to a 50% drop in my household income, which was a body blow. I work full time,  I think I am quite good with money but I still cannot stay out of the red most months and have precisely £0 in my ‘rainy day fund’. There is also discrimination at every turn. Council Tax, Child Benefit, lack of Married Person’s Tax Allowance, Benefits Sanctions and many other costs hit single parents disproportionately and that just isn’t fair. We deserve a level playing field, but you’d have to be innumerate and deluded to think a lone parent can look forward to the same financial security as a couple in the UK of 2019.

There is plenty more I could say but it’s not for now, because now is almost the ‘last working day of the month’ when for a full day my bank balance will look rosy and the financial future bright and I don’t want to waste a single minute of that day on angry rants…