New research has laid bare the intense financial pressure facing families across the UK, revealing that parents with young children are left with significantly less disposable income each month.
The Squeeze on Family Finances
According to the latest Household Money Index from MoneySuperMarket, parents with children under three now spend a staggering 76% of their income every month on bills and essential outgoings. The data shows they have around £200 less in disposable income than the average person, equating to £703.40 compared to £900.91.
This financial strain is forcing difficult choices, with three quarters of families admitting they have reduced spending on essentials. A worrying 25% of parents confirmed they have cut back on food shopping to cope with rising costs.
Rising Costs and Real-Life Impact
The situation is exacerbated by a sharp increase in essential costs. The latest figures reveal that school and childcare costs have surged by 23% in the 12 months since September 2024. Consequently, 35% of families now report they are "struggling to make ends meet."
Chloe Crichton, a 25-year-old mother of three-year-old twin girls and a five-year-old son, shared her experience. "I had no idea how expensive having a baby would be," she said. The financial pressure became so great that when her son was 10 months old, she and her husband Ethan moved in with her mother to get their finances back on track.
Chloe highlighted the ongoing challenges: "Our weekly shop as a family of five is around £100. I haven’t been able to go back to work after having the girls, because the nursery fees would be more than my monthly salary." After spending over £200 a month on parenting essentials like uniforms and nappies, the family is left with only around £350 after bills.
Finding Savings and Easing the Pressure
Despite the bleak outlook, MoneySuperMarket's Personal Finance Expert, Kara Gammell, insists there are practical steps families can take to reclaim some of their budget. She emphasises that just two key changes could give the average family an extra £500.
"If you’re feeling anxious about money, you’re not alone," Gammell stated. "Our research shows that almost half of parents of young children under four worry about paying essential bills. Everyone’s circumstances are different, but there are switches that could help ease the financial pressure."
She pinpointed two major areas for potential savings: switching to a fixed energy deal could save households up to £295, and broadband customers can save up to £172 annually by shopping around for a better deal. These small changes can collectively make a significant difference to strained household finances.
The report also found that the financial squeeze is not exclusive to parents. The average Brit now spends £55.26 a day just to get by, an increase of 8% from the previous year. Sharp cost rises were seen in vehicle fuel (18%), mortgages (10%), and groceries (8%).
