Twenty-one detailed focus groups with ordinary people from different kinds of household (such as families with children, pensioners and single people) had detailed discussions about the necessary elements of a household budget for each family type.
Experts looked at these budgets to ensure that they provided an adequate diet and met basic needs like keeping a home warm. On this basis the weekly minimum budget:
• For a couple with two children is £454.52 (benefits provide 60% of this amount)
• For a pensioner couple is £231.48, provided entirely by Pension Credit
• For a lone parent with one child is £275.59 (benefits provide 60% of this amount)
• For a single working-age person is £192.59 (benefits provide 40% of this amount)
Hourly wages needed for a minimum income standard: £8.38 for a single person, £9.39 for a couple with two children and £12.20 for a lone parent with one child.
Childcare: minimum costs have risen by nearly a third. In 2008, child minders outside London charged on average £2.70 an hour; now they charge £3.50. Childcare is families single biggest weekly outgoing.
Transport: bus travel has doubled in price since the late 1990s which, combined with cuts to public transport, means families with children now deem a car as an essential for the first time.
Tax credits: cuts to tax credits have increased earning requirements substantially, more than cancelling out the benefit of higher income tax thresholds.
A single person needs to spend £193 a week to reach a minimum standard of living.
A single person in work needs to earn £16,400 a year, in order to be left with £193 a week net after paying a basic rent, tax and national insurance.
A couple with two children aged 3 and 7 needs to spend £455 a week to reach a minimum standard of living.
Excluding rent and childcare £455 If neither parent works, the family will get £281 a week, leaving them £174 short of what they need.
If one parent works, they will need to earn £34,900 a year, in order to be left with £455 a week net after paying a basic rent, tax and national insurance, and receiving tax credits and child benefit.
If both parents work full-time, they will each need to earn £18,400 a year in order to be left with £455 a week net after paying basic rent, childcare, tax, and national insurance and receiving tax credits and child benefit.
For someone out of work, benefits will provide £85 a week, £108 short of what they need.
Yet again we are seeing evidence of working families being hit hardest by a perfect storm of soaring living costs and cuts to services and crucial support, like working tax credits.
"Millions of families are struggling to get by on dwindling incomes and even when both parents work full time they each need to earn 50% above the minimum wage, in order to provide a decent standard of living for their kids.
"These figures are a warning that we could see a generation of families that have to go without essentials."
People are being more modest in terms of what they think needs to be spent on participating in society, but this thrift has been outweighed by rising costs.
"Parents have not changed their view of most needs, including a nutritious diet and participation by children in activities vital for social inclusion. What has changed is the ability of many families to afford such essentials."