Single working parents in the UK have just £400 left after mortgage and childcare, new study reveals

• Single parents with a mortgage in Brighton are worse off financially across the UK, faced with an average growing monthly debt of -£900.
• In 14 out of the 100 most populated UK towns and cities, single working parents with a mortgage appear to be accumulating debt each month - before paying for bills, food and clothing.

Single working parents in the UK are left with only £400 each month after childcare and mortgage payments, before considering bills, clothing or food, a new study has revealed.

The study, by personal insolvency provider Creditfix, analysed four key data points across the 100 most populated UK towns and cities - including the average monthly salary, childcare costs, and average accommodation costs based on mortgage repayments or rental prices - to reveal the cities where parents are left with the most and least disposable income.

As the cost of living soars, Creditfix has created an accompanying ‘Cost of Being a Parent Calculator’, which parents can use to discover how much they’re likely to have left each month - based on either regional factors or their own personal circumstances. 

The research comes as many homeowners digest the impact of the Bank of England hiking interest rates to five per cent - the highest level for 15 years. 

Single parents with a mortgage in Brighton were found to be the worst off financially across the UK, faced with an average growing monthly debt of -£963. This is based on the average monthly mortgage repayments for a terrace property in the city, on a 5-year fixed mortgage with 10% deposit.

In 14 of the 100 cities, single parents paying off a mortgage were found to be on negative income accumulating debt each month after regional living costs; before taking other expenses such as bills, food and socialising into account. 

Those renting were slightly better off - single parents renting in the UK were likely to be left with £635 each month. However, renters in Luton were still likely to be in a deficit of over £40 after rent and childcare each month. 

Most expensive city/town to live in the UK as a single parent (mortgage)

Aberdeen, St Helens, Darlington and St Albans were found to be the cheapest cities for single parents with a mortgage, leaving them with over £1,000 in disposable income. 

Layla Johnson, regional manager at Creditfix, commented on the findings:

“The financial turmoil that single working parents may have to face after accommodation and childcare payments is astonishing; it seems as though some may be better off renting to aid short term disposable income and reduce piling debt.

“At a time when money is so tight, the ‘Cost of Being a Parent’ calculator could be insightful for parents, or parents to be, planning on where to settle down with their children to have the most comfortable life.”

You can find the full research and ‘Cost of Being a Parent’ calculator here: https://www.creditfix.co.uk/blog/priced-out-parents-how-the-cost-of-having-kids-differs-across-uk-cities/

If you’re struggling with the rising cost of being a parent and are worried about falling into debt, you’re not alone. Get in touch with the team at Creditfix to discuss the options available to take back control over your debt, including a Debt Relief Order, Debt Management Plan or an IVA.