Family budgets to take £1,000 hit?

family budget calculations

family budget calculationsIf you're feeling somewhat skint after being cleaned out by Christmas, you may want to look away now.

For a report from the Institute for Fiscal Studies has claimed that a couple with two kids - the average family, essentially - will be more than a grand poorer three years from now.

The report claims that such families will take a £1,250 hit to their annual income by 2015 - a gloomy prediction which means we should all be looking for even more ways to save over the coming months.

But where does the deficit come from? Well, the study reckons it's to do with cuts to benefits and the fact that parents are more reliant on the state than people without kids.

The study was commissioned by the Family and Parenting Institute. It said that family homes will see incomes fall almost 5% between 2010-11 and 2015-16.

Those of us with toddlers running around the house are in for a particularly tough few years, according to the report. It cited the fact that homes with under-fives are more reliant on benefits than those with older kids.

Dr Katherine Rake, chief executive of the Family and Parenting Institute, said: "These figures reveal the full extent to which families with children are shouldering the burden of austerity.

"Having children has always been expensive. But now many families with children face an extra penalty of more than £1,000."

The report's findings are likely to be a concern for parents up and down the country. However, why not try to take positive action by looking at easy ways to save money around the house?