Vulnerable children Vs The cost of living crisis

The UK is currently set to suffer from yet another national crisis. With the soaring rates of inflation set to reach an all-time new height, the devastating effects are being felt by many families, especially those in the most vulnerable situation. Here, Rubecca Rahman looks at the effect the cost of living crisis may have on children in the most vulnerable households.

Basic needs such as heating, food and clothing are all factors which will be affected once the crisis hits. Many families are facing the devasting reality of living within the crisis and for many vulnerable families the reality is real. The cost-of-living crisis is not just an economic challenge. It also has knock-on effect on a person’s mental health and social wellbeing – particularly for the many young people that face the prospect of a cold, hungry and uncertain winter.

Many independent organisations have warned of the consequences the cost-of-living crisis will have on a child’s health, education, and wellbeing. According to statistics, 1 in 3 children already live within poverty. These numbers are set to rise even further due to the recent inflation rates. The causes of the rise in inflation are complex. Years of austerity combined with dormant wages and cuts to benefits has left many exposed to financial risk. Then came the global Covid-19 pandemic which rocked families even further and pushed many families below the line of poverty.

The effect and impact of poverty is well known. However, a less well-known fact is the growing evidence that poverty is a major factor in child abuse and neglect – one the leading reasons for children entering the care system. Whether it’s the failure or inability of a parent to care for and provide the basic needs for the child or a parents’ helplessness to escape an abusive partner because of financial hardships, there are more and more children facing the risk of entering care. As a result, children are not able to reach their full potential. Their chance of a safe and happy childhood is immediately taken away.

Throughout the years, child poverty has risen significantly and the rise in the number of children entering care has coincided with rising child poverty cases. The most recent figures available show 4.3 million children living in poverty. Furthermore, in England, children in the most deprived 10% of neighbourhoods are over ten times more likely to be in care or under some type of a protection plan. Further research also suggests children living in low-income households are three times more likely to suffer from some form of mental health problems than their more affluent peers. Additionally, children born into poverty are more likely to experience a wide range of health problems, including poor nutrition and chronic disease. Poverty also places an additional strain on families and relationships leading to further struggles.

Unfortunately, it is unlikely these figures will fall anytime soon, as the full impact of the pandemic and the cost-of-living becomes apparent, the situation is likely to worsen. The cost-of-living is expected to accelerate pre-existing trends of greater poverty and inequality within the UK. A child centred approach is therefore fundamental in safeguarding and promoting the welfare of every child. This approach focuses on the child’s needs when making decisions about their lives and working in partnership with them and their families to come to an agreement.

What does this look like in reality? Children must be put at the forefront of any discussion between parents and/or legal parties to ensure that they are warm, well fed and most importantly safe. Reach out to family members or obtain professional help and assistance to care for the child. Ultimately it is important to safeguard their interest and needs.

If you are affected by any of the issues raised here, please get in touch today. We are here to help.

The cost-of-living crisis and its impact on financial remedy proceedings

One of the most discussed topics over the last few months has been the anticipated increase to the cost of living in the UK. The Office for National Statistics state that 9 in 10 adults in Britain have reported an increase in their cost of living. Here, Weronika Husejko takes a closer look at the impact of the cost-of-living crisis and how it will impact financial remedy proceedings.

What impact will this have?

Whilst the Government have recently announced measures to help tackle the crisis, including tax cuts and a £400 energy discount, there are other factors such as inflation which will inevitably increase all of our expenditure going forward.

The cost-of-living crisis is expected to see individuals fall into more debt than usual, experiencing difficulties meeting their standard outgoings and ability to afford other activities such as holidays.

This will be ever more relevant for those going through the process of separation, in particular those with a mid to low income. They will be amongst those most impacted by the significant increase in expenditure, one of the reasons being that it can be very difficult to adjust from a household with two incomes to that of one. Outgoings naturally increase upon separation as there are two households to upkeep as opposed to one.

Will this be taken into consideration within financial remedy proceedings?

When financial remedy proceedings are issued, the Court will direct that both parties are to complete a Form E of their financial disclosure. Within that form, there is a section relating to the income needs of yourself and your children.

Your income needs are your general expenditure, whether that be on an annual, monthly or weekly basis. This involves detailing a list of your regular outgoings such as rent, utility bills, food and clothing. This is an important part of financial remedy proceedings as it allows the Court to see what your outgoings are and how much you need to meet them. They can then compare it to how much income you have.

You are given the opportunity to state not only your ‘current’ income needs, but also your ‘future expected’ income needs. This is because the Court consider both current and future needs. Therefore, in circumstances where you expect your income needs to change, whether that be higher or lower, you can make this clear to the Court within your Form E.

The Form E also includes a ‘liabilities’ section which allows you to disclose any debts you have. Generally, ‘hard’ loans e.g. bank loans or credit cards will be taken into account by the Court, even if they have been incurred post-separation. As a result, if your debts increase due to the current economic circumstances, this may be relevant within financial proceedings.

It follows that if you have been or are going to be impacted by the cost-of-living increase, this may be taken into consideration by the Court within financial remedy proceedings.