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New Year Brings New Struggles for Single Parents

2011 is expected to be a difficult year for single parents with the recent rise in VAT to 20%, increases in National Insurance and spending cuts including reductions in help to childcare costs
Finance, Lifestyle - 12 January 2011   Download IconContent available for download:  
Audio | Interview with Caroline Davey and Genny Jones| Login to Download

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The rise in VAT to 20% looks set to mean even tougher times in 2011 for families, now set to lose hundreds of pounds a year as a result. Research estimates the average UK household on a combined income of £25,000 will pay an extra £150 per year as a result of the hike. The start of the new tax year will also bring increases in National Insurance and a range of spending cuts, including reductions in help with childcare costs for parents claiming tax credits.

While child-related costs are the same for single parents as for other parents, single mums and dads are often on tighter budgets than other families. Nearly a third of single parents (31%) have a usual gross weekly household income of £200 or less.

Only two in five single parents receives any child maintenance from their child’s non-resident parent. 38% of single parents said money always or often runs out before the end of the month in comparison to 19% of couple led-families.

. Introduction:

As the post-Christmas bills fall through the letterbox and VAT is hiked to 20%, this month paints a bleak financial picture for the British public. After a year of rising food and fuel prices, many are down to the bone and a new guide has been launched to help single parents - who could find this year particularly tough - save money online.

So, just how can single-parent families protect themselves from the recession’s worst effects?

Joining us in the studio to discuss this further is Caroline Davey, Director of Policy and Advice at Gingerbread, the charity for single parents, and Genny Jones, a single mum.

. Suggested Questions:

How many single-parent families are there in our area?

How will the VAT increase affect single-parent families?

How will this year’s spending cuts affect single parents?

Why is the new year such a difficult time for us all financially?

Genny, how are you feeling going into this new year?

Where can listeners find more information including the new online guide?