New research reveals around half of low-income families face added debt and hardship as school safety net disappears for summer

• Without school ‘safety net’, around two-thirds of parents polled are concerned about paying essential bills, childcare costs or children’s activities this summer.
• Around half are likely to use Payday loans; extend an overdraft; or sell something to cover costs with many saying the most likely use of funds is to buy food.
• Action for Children’s Family Clubs Programme, funded by Nationwide, offers a lifeline for families in poverty, particularly during the summer break.
• Nationwide’s Better Off Indicator identifies over £100 million in annual unclaimed benefits since launch in June 2025 and is available for anyone to use.

As schools across England and Wales prepare to break up for summer, new research by Nationwide and Action for Children warns thousands of families face a looming crisis of unaffordable childcare, rising costs and impossible choices.

The research - which polled 2,000 parents with school-age children on Universal Credit across the UK - found over three quarters (78%) of low-income families agreed[1] that school provides “an important safety net”, albeit one that will end this week for the summer break.

It means an end to vital school-based support, with over two-thirds of low-income families currently reliant[2] on subsidised school meals (75%), subsidised trips and activities (69%), subsidised childcare (66%), and school-based sports clubs (71%).

Without school, families face a sharp increase in food, fuel and childcare costs with no boost in household income. Over two-thirds report concern[3] about paying essential bills (72%); childcare costs (60%); or children’s activities (69%) this summer.

The research reveals low-income families could be forced into drastic action with at least half of parents likely to:

- delay paying rent or mortgage payments (50%);

- use Buy Now Pay Later schemes (63%);

- extend their overdraft (52%);

- take out a loan (54%);

- or sell something essential or important to them (55%) to cover costs.

Of those borrowing additional funds, the most likely reported use was buying food (32%). With over a quarter citing utility bills (28%) and childcare costs (27%).

Almost all (98%) say the cost-of-living will negatively impact their summer holiday plans as the summer cliff edge looms.

The charity warns such stark choices on essential costs leave low-income families at risk of summer isolation, with children missing out on fun activities and enrichment.

Of the parents surveyed who say the cost of living will negatively impact their summer holiday plans, over a quarter (27%) said they will avoid any plans which have an extra financial cost. Almost one in four have cancelled days out or trips (24%) or will avoid a holiday this year (24%).

The charity also highlights the impact on children’s opportunities for social interaction, with one in five (21%) parents understandably saying they expect to use devices such as iPads or TV to keep children entertained to keep costs down.

Catherine Joyce, National Director for England North at Action for Children, said:

“Our front-line services see the impossible choices families face across the UK every day, and while summer is a vital time for play and adventure the pressure of costs intensify for families. How can we expect a child to enjoy their holidays with families concerned about paying for their next meal, let alone enriching activities?

“This tough reality means support like our summer programme of Family Clubs are more vital than ever. They offer a local lifeline of access to enjoyable playtime, a hot meal, and chance to build some supportive networks for parents and children.

“Our message to the new Prime Minister is clear: tackling the cost-of-living crisis for children and families must be a priority.

“The Great British Summer savings scheme is welcome, but we must see further targeted support for low-income families already struggling with rising costs and affordability. Summer should be carefree time of exploring for children; it is these foundations which have a lifelong impact on children’s learning, development, confidence and friendships.”

Family Clubs - funded by Nationwide and delivered by Action for Children - run across England, Scotland, Wales and Northern Ireland. They offer families a chance to come together with fun enriching activities, a hot meal, learning opportunities and a support network.

This year marks two years of Action for Children's partnership with Nationwide Fairer Futures. The Fairer Futures strategy focuses on tackling some of the UK’s biggest social challenges, including child poverty. The UK’s largest building society invests at least 1% of its pre-tax profits to charitable activities each year. In 2025/26 this equated to £21.8 million.

Together, Nationwide Fairer Futures and Action for Children have already helped provide practical and emotional support to more than 140,000 children, young people and parents experiencing poverty or financial hardship.

Nationwide’s Better Off Indicator helps identify unclaimed benefits for anyone – and has identified over £100m in first 12 months.

At a time many households, including many families, continue to struggle – Nationwide launched its Better Off Indicator in partnership with social policy experts, Policy in Practice to help make a difference.

The free tool, which is available over the telephone or online, can be used by anyone - not just customers. It helps people identify benefits to which they may be entitled. Since launching last June, it has helped more than 15,000 households identify over £100 million in annual unclaimed benefits. See Better Off Indicator.

Gemma Bird, Action for Children supporter and personal finance influencer, commented:

"Without the safety net of school, families are suddenly faced with six weeks of extra food costs, childcare and finding ways to keep the kids entertained. With household budgets already stretched, many parents are making impossible choices to cover the essentials, and some are getting into debt to put food on the table and cover bills. It's heartbreaking.

"There are ways to make the summer holidays more affordable. Check local community noticeboards and social media groups, as lots of free activities aren't widely advertised. Getting together with other parents in the playground for toy swaps is a great way to keep kids entertained with something new, while a trip to the library can make story time feel exciting without spending a penny.

"Most importantly, don't struggle in silence. Check what financial help you could be entitled to by using a free online tool, such as the Nationwide Better Off benefits indicator. So many families are missing out on support simply because they don't realise what help is out there."

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NOTES TO EDITORS

About the research:

The research was conducted by Censuswide, among a sample of 2,000 Parents with school- children age (5 to 18) and receiving Universal Credit . The data was collected between 16.06.2026 - 26.06.2026.

Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge. We adhere to the MRS Code of Conduct and ESOMAR principles

Action for Children:

Action for Children protects and supports vulnerable children and young people by providing practical and emotional care and support, ensuring their voices are heard and campaigning to bring lasting improvements to their lives.

With 342 services in local communities across the UK, in schools and online, in 2024/2025 we helped 551,400 children, young people, and families. actionforchildren.org.uk

About Nationwide:

Nationwide is the world's largest building society, with over 16 million members. Following its acquisition of Virgin Money UK PLC, Nationwide is connected with one in three people in the UK and is the second largest provider of mortgages and retail deposits.

It is also a major provider of current accounts, credit cards, personal loans and business banking.

Customers can choose to manage their finances in a branch, via mobile app, the internet, telephone, and post. Nationwide has around 25,000 employees and its head office is in Swindon, UK.

As a financial services provider owned by its members, not shareholders, Nationwide's purpose is: Banking - but fairer, more rewarding, and for the good of society.

For more information see: About Us | Nationwide.