Tackling child poverty delivery plan: fourth year progress report 2021-2022 - focus report on households with mothers aged 25 or under

2. Cost of living

Cost of living is a key driver of poverty as it impacts directly on a family's remaining available income after essential goods and services. Low income households, including those with mothers under 25, spend a greater share of their income on essential costs, such as food, housing, fuel or transport.

The majority of mothers interviewed described themselves as just about managing financially, with a few saying that they were struggling. All participants felt acutely the impact of price increases, primarily in gas and electricity bills, but also in other essentials such as food and baby items. Of those interviewed, none said they had money left over at the end of each month. A few participants explained that they had made adjustments in what they buy and use in order to cut back and help them cope financially, particularly over the past year.

“I wouldn’t say I’m doing too bad, but I’m not doing as well as even last year. There are times I do have to worry about money and I’m not able to save at all any more”

Mother under 20, part of FNP

“We’re surviving, sometimes money is a bit tight… and the cost of living doesn’t help, things are more expensive. Before we think about things we have to think can we afford this, what money do we have to afford this stuff?”

Mother aged 20-25, part of FNP

“To be honest sometimes I have problems with money, gas and electric is very high’

Mother aged 20-25, not part of FNP

Many mothers discussed having to adjust their spending and budgeting patterns, having less money to spend on themselves and the things they used to enjoy now that they prioritise spending on their children).

“It’s a conscious decision not to get a dishwasher or a tumble dryer because the bills will add up… We just cut back on things, for ourselves really. The money we would have spent on ourselves we just don’t do. We just have to do that. We just don’t go out, we don’t buy ourselves things anymore”

Mother aged 20-25, not part of FNP

“I had more disposable income [before having child]. It’s still affordable but I can’t really do the same. Before I had my little girl I was able to do more things for myself like getting my hair done, buy clothes, going out… I don’t have that amount anymore. And now with the childcare it’s even less disposable income.”

Mother aged 20-25, not part of FNP

For many mothers, particularly those in their teens, this was the first time they had to manage their own finances. In interviews this was discussed as being an additional pressure when adjusting to life as a new mum. When becoming a parent for the first time they were facing the additional challenge of becoming financially independent and responsible for themselves and their baby.

Some mothers were able to receive support from their own parents, although this was not an option available to everyone. Where this sort of support was available it was seen as a particularly helpful way of managing the costs of looking after their child.

“We’ve had a lot of support from both my side and my boyfriend’s side of the family financially, but with the social side too. My family and boyfriends family split the costs of the pram and bought us a moses basket and cot. Both our families chipped in and bought a lot of stuff for us because we were struggling, I was on benefits and my boyfriend was on benefits at the time.”

Mother aged 20-25, part of FNP

However, many did not receive financial support from their parents. While their financial circumstance were challenging, some mothers saw becoming pregnant as a positive experience and an opportunity for them to improve their financial independence and ability to manage their finances.

“It’s made me grow up in a way. I had to learn about different finances and manage my money”

Mother under 20, part of FNP

“When I was halfway through pregnancy my partner and I moved into our own place. We had to learn to live on our own and pay bills, be organised, stuff like that – not have people running round after you”

Mother 20-25, part of FNP

This section explores in more detail evidence available on cost of living as a driver of poverty for mothers aged under 25.

2.1 Childcare

Each family's circumstances will be different, depending on many factors including a child's age, health or emotional development. Logistical needs to keep family life going will vary over time. Similarly, parents' aspirations will also evolve. Families should be supported to achieve their ambitions with policies aiming to overcome the barriers that see parental disadvantage translate into childhood disadvantage.

In many cases, free or subsidised childcare helps reduce the cost of living for those who already use it. In other cases, it can also widen the choices for parents. Generally, access to affordable and flexible childcare can be an important help for mothers under 25, allowing them a choice to return to education or employment.^[71]

A recent qualitative research report on the 'Decisions influencing Early Learning and Childcare (ELC) use in Scotland', found that funded ELC enabled some parents to get a job or start/continue college courses. In addition to supporting their child(ren)'s development, parents described how funded ELC offers respite for themselves or grandparents, positively impacting on mental health and other relationships, as well as being a form of financial support. However, the report also found that several participants felt that it was difficult to find work or study that matched the funded ELC hours available, and a few suggested it was not compatible with certain jobs, e.g. shift work. This latter finding for the extended Scottish offer may have particular impact on mothers under 25 given the type of employment they are more likely to be in.^[72]

“I probably did [feel my choices were restricted or limited], to be honest, just because obviously there’s only a certain amount of jobs that probably fit around the criteria of them going to nursery and being able to do the pick-up and drop-off as well as going to work.”

Mother under 20, part of FNP

Research with teenage mothers taking part in a return to education programme found that childcare was the single most important factor in enabling them to return to education.^[73] In most cases, teenage mothers make use of more informal childcare, in the form of grandparents or other family members. Evidence highlights, however, that in the most complex examples, where individual circumstances have led to difficult relationships with parents or extended family, this cannot always be relied upon.^[74]

When interviewed, the age of their child and the availability of free or affordable (formal or informal) childcare was often the biggest factor in determining whether mothers had returned to education or employment and for how many hours.

“The childcare would be the support I’d need. I’m being expected to work. They need to get to nursery, the baby needs looked after. I want to get back to work, I like my job and I like working, but I haven’t even been able to think about how that’s going to work.”

Mother under 20, part of FNP

“I’m hoping to go back to college next year to do social work…if I could get a place in nursery definitely I’d do it but it’ll be quite hard. If I don’t get a place, I won’t be able to do I don’t think. It depends on the college itself cos I know some of them have nurseries themselves so if they had a nursery I’d do it. I’ve not looked into it yet but I know they do it.”

Mother under 20, part of FNP

For some mothers, upfront costs can be a barrier to accessing childcare. Even when they receive support from Universal credit to pay for the monthly cost, some childcare establishments request upfront payment. While they are later reimbursed, many do not have the funds for this upfront cost.

“…childcare arrangements are very expensive. Especially for a baby. Universal Credit would pay 80% but I need to pay the first payment and then they’d reimburse, but it’s not possible at all for me to do the first big payment.”

Mother under 20, part of FNP

Alongside availability of childcare, parents need to be able to make their journeys from home to work to childcare in time. Many of the mothers interviewed relied on public transport, so geographical accessibility of childcare and employment was also a consideration. This challenge is emphasised when there is an issue of capacity at childcare providers. As one interviewee put it:

“All the local nurseries are full. All the others are far so I’d have to get up super early and change my shifts at work.” Mother under 20, part of FNP

Further detail on transport follows.

2.2 Transport

Alongside transport costs, parents face additional barriers around the availability and accessibility of public transport when moving around with their child and specifically when using prams.^[75] A lack of affordable and accessible transport options can impact on parents' ability to access support, services and employment which can help lift them out of poverty. For example, in an evaluation of a teenage support programme in England, aimed at improving employment outcomes for those furthest away from the labour market, most participants did not have access to their own car and, without the free transport provision offered by the service, they would have been unable to attend as public transport in the area was felt to be unreliable.^[76] Evidence highlights that costs and availability of public transport, as well as childcare, can be significant barriers to employment for young parents - in Scottish rural areas especially.^[77]

Women are still more likely than men to do most of the childcare and unpaid household labour.^[78] Therefore, even in households where they are not a lone parent, young mothers are more likely to need access to forms of transport which allow them to balance responsibilities for caring, paid work and domestic tasks. Evidence highlights that there are fewer services available for these types of multiple journeys women still need to make more often.^[79]

A common frustration was not being able to fit prams on the bus and then being late or missing appointments after having to wait for another bus or walk. The mothers interviewed who had good transport links were better able to access childcare options, educational establishments, support sector and employment options, whereas those who faced transport challenges stated this as a decisive factor in their childcare and employment options.

“Sometimes with having a pram a lot of the time I’m late for appointments because the bus is full and I have to wait for another one if the wheelchair/pram area is taken”

Mother under 20, part of FNP

“It’s hard to get to appointments. I have a dentist appointment tomorrow, but can’t go because it’s 45 minutes away and I’d have to get 3 buses. So that’s 3 buses I’ve gotta change to get on and like I might not get a seat on one if there’s a pram already on and if someone else gets on in a wheelchair.”

Mother aged 20-25, part of FNP

Several of the mothers interviewed appreciated the free bus pass entitlement, but some were not aware of the Young Persons' Free Bus Travel Scheme. For some mothers aged 23-25, there was a sense of frustration that they had just missed out due to their age. For some of those who have been through the process, navigating the application for the bus pass was also mentioned as a challenge.

2.2 Housing

Housing affordability

Low-income families where the mother is under 25 spent on average 26% of their net household income on housing in 2017-20. This was slightly higher than all low-income households, who spent 21% of their net household income on housing.

Source: Family Resources Survey. Data for Scotland

Since 2010, there has been a clear reduction in overall UK Government spending on housing in the UK. This includes reductions in housing benefits rates and eligibility, introduction of the 'bedroom tax' and a reduction in the size and status of the social housing sector.^[80] While in Scotland there have been efforts to mitigate some of these gaps, these cutbacks have had a disproportionate effect on women who, in the UK, are twice as dependent on social security payments as men and are more likely to be in receipt of housing benefit. ^[81] Further detail on the progress of housing policies in Scotland can be found in the fourth year progress report.

Women's experiences of homelessness are complex and influenced by a network of intersecting and structural inequalities. This includes, for example, unequal and low pay, unpaid caregiving responsibilities, limited affordable housing, and discrimination. Where support is available, women may experience multiple barriers which prevent them accessing support for housing. Evidence suggests that these barriers include a lack of knowledge of how the system works, limited or no internet access, uncertainty around eligibility and challenges in accessing support as a result of additional needs such as their physical or mental health^[82].

There seems to be a heightened risk of homelessness and domestic abuse for young mothers. While most applications came from men (58%), pregnant young women and young mothers (under 21) make up about 1 in 25 of all applications for homeless assessments in Scotland.^[83],[84]

The targeting of policies that support safe housing for young mothers in particular can be beneficial in helping to support young mothers experiencing homelessness.^[85] Recent research looking at experiences of domestic abuse in Scotland has shown that motherhood is linked to experiences of domestic abuse, with pregnancy being a particular point of risk. Young mothers on the lowest incomes also appear to be the most vulnerable in Scotland. Among young mothers who were 20 years old, and who were on the lowest income fifth of the distribution, 34% were predicted to experience abuse. By comparison, for mothers who were 20 years and older and who were not in the lowest income fifth, the predicted probability of experiencing abuse was just under 11%.^[86] The full extent of women's and children's homelessness due to domestic abuse is unknown. Official homelessness records cannot account for domestic abuse as women may not disclose that they are experiencing abuse when making an application.

Being made homeless can have impacts on mothers' ability to access further services. Experiencing homelessness can separate families, prompting mothers to place children in other forms of care, such as informal care with relatives or having their children taken into care.^[87] When separated from their children, a mothers' maternal status can be impacted which has consequences on their ability to access tailored housing support for parents. These barriers to accessing housing support they would otherwise be entitled to, can trap mothers in a cycle of homelessness.

Even when housing is provided to homeless mothers, with or without their children, this is not always suitable and can end up reinforcing, rather than mitigating, financial difficulties. For example, out-of-area hostel and refuge placements (where women escaping domestic violence are often placed), can result in mothers needing to pay for travel to schools, appointments with children's social services, other support services and family support networks. Accommodation provided can also be temporary, often unsuitable for families and can lead to greater instability due to having to move frequently.^[88]

Some mothers we spoke to had experienced unstable housing situations and homelessness following their pregnancy for a variety of reasons, including difficult home and family situations and domestic abuse. They told us about being moved around temporary accommodation, sometimes far away from their existing support networks.

“My Family Nurse did refer me to [an organisation supporting domestic abuse victims] but it was in a different part of the city and I want to stay where I am. I know you can’t really pick where you stay but I’ve got no family there so if I moved away I’d have no family or anything.”

Mother under 20, part of FNP

“My dad kicked me out [after becoming pregnant] so I lived with my boyfriend but my boyfriend’s dad was horrible. I moved in with my mum and stepdad but me and him didn’t get on and then I got put in temporary accommodation but I was so young when I got pregnant. It wasn’t a good thing for me. It was stressful, not knowing how long I was going to be at that place”

Mother 20-25, part of FNP

Homelessness policies are not always reaching younger mothers effectively despite clear evidence that they have an increased need. For example, evidence shows that in the Housing First policy, those benefiting are more likely to be male (72% male, 28% female), White Scottish (90+%) and aged 25 to 49 (67% vs 20% for under 25s and 13% for over 50s).^[89] More gendered approaches to supporting women through housing policies are therefore needed to ensure young mothers in these circumstances can receive suitable gender-specific support.

Many mothers interviewed mentioned how becoming pregnant or having a baby changed their housing needs. Some were living with their parents or other relatives before having their child, and had to find suitable housing for the first time. A smaller number of mothers, did decide to stay at home where their parents were able to provide support.

“When I was halfway through pregnancy me and my partner moved into our own place. We were living with his relatives at the time but wanted our own space, we didn’t want to be under people’s feet or have the baby screaming at night”

Mother aged 20-25, part of FNP

“Before I was pregnant I stayed with my aunt. I applied for the council once I was pregnant cos her place would be overcrowded”

Mother aged 20-25, not part of FNP

“I was going to move out before I got pregnant, but my parents didn’t see the point in moving out once I fell pregnant so that they’re around to help out with the baby”

Mother aged 20-25, part of FNP

Many mothers who were living independently discussed being in accommodation that was unsuitable for a baby or growing family. The main source of struggle or worry amongst those mothers interviewed, was around improvements to their current accommodation. Some were waiting on updates to reported problems such as damp/mould, unsafe areas, lack of lifts or limited space. Many mentioned how important it was to them to be close to social connections, particularly around family/friends who could help with childcare or day to day logistics. Those who were living further away found it lonely and more difficult.

“It’s not got a bath, it’s only got a shower and it’s up the stairs so I have to take the buggy up the stairs and my upstairs neighbours boiler keeps leaking so there’s lots of damp. My son always has a cough and isn’t well because of it… the council keep saying they’ll get someone to phone me but no one does”

Mother under 20, part of FNP

Some received valuable help in navigating the complex housing application processes from their parents, health and social care workers, family nurses or third sector support organisations.

“My Family Nurse was very helpful. I was staying with my parents in a very small room but she said he needs to have his own room so she helped me with my housing application”

Mother aged 20-25, part of FNP

2.3 Other costs of living

There are other costs of living that represent an important proportion of the household's regular expenses. Fuel is one of them. Households with a mother under 25 spent around the same proportion of their income on fuel when compared to all low income households. Still, mothers interviewed still talked about the challenges of managing all bills and finances.

Fuel affordability

Low income households with a mother under 25 are estimated to have on average spent 14% of their net household income (after housing costs) on fuel in 2017-19. Low income families as a whole spent a similar percentage of their net household income on fuel (16%).

Source: Scottish House Condition Survey

“For gas and electricity, I’m in lots of debt, and direct debit got cancelled. My monthly payment has gone up by £55 to get direct debit reinstated. I need to rework my whole financial state to work out how to pay the bill, plus pay off the debt and still have enough left to pay all my other bills”

Mother aged 20-25, part of FNP

From a food insecurity perspective, child poverty can affect the nutrition of mothers through pregnancy and for children in the early years.^[90] Data on food affordability amongst mothers aged under 25 show that they spend a similar proportion of their income on food and non-alcoholic drinks as all households with children.

Food affordability

UK households where the mother is under 25 (across all incomes) spent around 11% of their income on food and non-alcoholic drinks in 2017/18 to 2019/20. This is similar to the percentage spent by all households with children (10%).

Source: Living Costs and Food Survey

For those who breastfeed, particularly when done exclusively, this can reduce the cost of purchasing formula milk and equipment in the early days, weeks and months following birth. Breastfeeding rates for younger mothers, although still significantly lower than for older groups, has increased over the past five years.^[91] There continue to be some marked inequalities in breastfeeding. Babies born to mothers in more deprived areas, younger mothers, and those of White Scottish ethnicity are the least likely to be breastfed. Breastfeeding continues to be supported through the Family Nurse Partnerships and wider initiatives across NHS Boards.

Some people are not able to breastfeed, or may choose not to do so, for various reasons. In the current context of the cost of living crisis, First Steps Nutrition developed a paper on the use of formula milks and how to potentially reduce costs, providing some specific recommendations for Government.^[92] The recommendations include increasing benefits such as Best Start Grant to help with the increase in formula prices and for Government to take action to reduce and cap the cost of infant formula and explore new tax levies on breastmilk substitutes.

2.4 Debts

Indicator 15: Unmanageable debt

A fifth (20%) of all households with a mother under 25 were in unmanageable debt in the UK, as of 2018-20. This proportion was higher than for all households with children in the UK where 8% were in unmanageable debt.

(To note, base sizes for Scotland were too small to allow analysis)

Source: Wealth and Assets Survey

The precarity of young mothers' financial situation came through strongly in the interviews. Many respondents mentioned various sources of debt, ranging from phone, credit cards, council tax payments or paying back family/friends. This stress can be damaging for their mental health and for some it made them feel as if they were in stuck in a vicious cycle of debt.

“I’m stuck in my overdrafts at the moment and 2 credit cards to pay off as well”

Mother under 20, part of FNP

While some respondents were aware of the financial support available, many were not. There was general agreement that help is needed to navigate the range of support available, understand eligibility of benefits or support, complete application forms and generally keep up to date with a changing landscape of support and benefits. For example, respondents engaging with the Family Nurse Partnership highlighted that the support of the nurses helped them to understand eligibility and apply for support.

2.5 Enablers (such as access to affordable credit, internet access, assets and savings)

Savings and access to affordable credit can protect against material deprivation and problem debt. They act as a buffer against unexpected costs and fluctuations in income.

Young people are often more financially vulnerable than older people. They have had less time to learn and develop experience in managing finances and accumulate savings.^[93] This is highlighted amongst mothers under the age of 25 who were more likely to not have access to savings (67% compared with 35% of all families in Scotland).

No savings

In 2015-19, 67% of families in low-income households with a mother under 25 had no savings. Over the same period, 35% of all families in Scotland had no savings.

Source: Scottish Household Survey

Limited savings, added to pressures from high costs of living, can make it more difficult for younger parents to manage their household's finances and respond to unexpected household costs, such as replacing broken items and household repairs. Younger parents' ability to meet basic living costs are also impacted by receiving lower levels of Universal credit than those over 25 which can make it difficult for them to afford food, bills and the additional costs of looking after a child.^[94]

“Finances were different last year…I’m breastfeeding, so can’t really go to work…Now I have to rely on what comes in from UC and my maternity pay. There’s a big difference. Baby doesn’t require much…but still nappies and baby clothes. Sometimes I’m having a hard time catching up with it all.”

Mother under 20, part of FNP

Financial support for young parents is therefore important. Research has suggested that peer support, or community based support, appear to be particularly useful for young parents who have limited knowledge of managing finances and accessing financial support.^[95] This is because younger parents can be hesitant to access more formal forms of support through formal routes, like health professionals/visitors, due to the perceived stigma and judgements they worry they might face. This can lead to embarrassment as well as fears that their child will be removed from them if their parenting abilities were questioned.

During the pandemic, digital access has become increasingly important in accessing services including healthcare, social services, financial advice and education.

Internet access

In 2012-2019, 75% of families in low-income households with a mother under 25 had internet access from home. This is lower than all low income households with children over the same period (85% had internet access at home) and for all households with children where 96% had internet access.

Source: Scottish Household Survey

Programmes like Connecting Scotland specifically target households with children to ensure that they have a full working internet connection and suitable devices. However, there are some barriers to overcome.

• Structural. Temporary housing or homeless accommodation very often does not allow internet access to be installed.
• Accessibility. Many young parents have challenges with health and social care literacy and find online messages difficult to access.^[96]

Accessibility was a prominent theme in the qualitative interviews. Most of the mothers interviewed accessed information on benefits and their financial entitlement online, but often found the information complicated and confusing, requiring them to seek support and advice from elsewhere. They valued the face-to-face support received from workers such as health visitors and Family Nurses as well as third sector and welfare advice organisations in guiding them to understand their financial entitlement and the application processes. Mothers generally felt that information on financial entitlement should be clearer and more widely accessible for everyone, not only those with access to a good support worker.

Some participants also noted that although financial support and advice was available online and they were able to navigate this, accessing it in this way could leave them feeling isolated and less connected to other mothers who might be in similar situations.