Families are struggling as the cost of bringing up a child has risen to £148,000, according to research for the Child Poverty Action Group charity (CPAG).
At the same time, it says the value of benefit payments fell in real terms.
But the government said it was helping families by cutting income tax for 25 million people.
‘Stark picture’
The CPAG says parents face a “growing struggle” to provide a decent standard of living for their families.
“This research paints a stark picture of families being squeezed by rising prices and stagnant wages, yet receiving ever-diminishing support from the government over the course of the last year,” said Alison Garnham, the chief executive of the CPAG.
The report points out that benefits payments rose by only 1% in April this year, as a result of the government’s welfare changes.
It adds that the minimum wage rose by 1.8%, average earnings rose by 1.5%, and child benefit was frozen.
But the cost of living rose sharply for many families,
especially for those who need child care.
Kim Levine, a single mother with two children from south London, told the BBC she found the cost of child care particularly high.
“Child care is so much that I try and avoid it almost. My wages definitely haven’t gone up in the last few years, and yet my weekly food shop has,” she said.
Read more on the BBC website, http://www.bbc.co.uk/news/business-23726224