Living 'costs at least £14,400' for a single person

[davieG]

From the BBC

A single person in the UK needs a gross income of at least £14,400 in 2010 to live to an acceptable standard, a charity says.

And a couple with two children need £29,200 for a minimum acceptable standard of living, the Joseph Rowntree Foundation (JRF) said.

The figure indicates a growing gap between the national minimum wage and the minimum income standard.

The charity claimed this was due to rising inflation for necessities.

"This research shows what ordinary members of the public think is needed - not just to survive but to take part in society," said Julia Unwin, chief executive of the JRF.

"It provides powerful evidence for the new government to use as it develops policies to deal with poverty."

Typical basketThe JRF report is an attempt to raise the debate about the level of relative poverty in the UK beyond the official poverty line of 60% of average earnings.

Inflation is calculated using a typical basket of goods. Similarly, since 2008, the JRF has gathered information from focus groups to set a benchmark for an "acceptable standard of living".

For example, it now considers a computer and home internet connection as essential for all working age households. In previous years this has only been necessary for people with school-age children, it concluded.

Pensioners, however, thought the internet was growing in relevance - but not yet a necessity.

Key findings from the report included:

• The minimum household budget needed to rise by 3% to 4% in the year to April - broadly in line with inflation.
• In the last 10 years, inflation had risen by 23%, but key essentials cost 38% more.
• This included food prices (up 37%), bus fares (up 59%), and council tax (up 67%).

The essentials required for a minimum standard of living have not been reduced in people's thinking, despite the level of economic uncertainty, the Foundation said.

For example, a week's holiday a year in the UK was still considered necessary to participate at an acceptable level in society.

TrendsThe JRF said that the Budget's announcement of a £1,000 hike in tax allowances from next year would make a family £320 a year better off, after inflation, if both partners were working.

But all of these gains could be lost by other Budget changes, such as cuts in tax credits, the freezing of child benefit, the rise in VAT, and the cap on housing benefit.

"This new research underlines how people living close to the minimum income standard can end up not having enough, if economic trends start going against them," said one of the report's authors, Donald Hirsch, of Loughborough University.

"For example, a single person who a decade ago had just enough to get by, and whose income has risen in line with official inflation, cannot afford a minimum budget today.

"Big rises in the prices of things like food and council tax means that they are nearly £20 a week short of what they need, and must think of what essentials they will go without."

[Jon the Hat]

There is nothing quite as pointless as a national average.

£29,200 wouldn't even cover my mortgage on a two bed semi and food let alone anything else.

[Alexikokopops]

There is nothing quite as pointless as a national average.

£29,200 wouldn't even cover my mortgage on a two bed semi and food let alone anything else.

Exactly. I live next door to Richmond-upon-Thames, where you're looking at £10,800 upwards a year just to rent a one bedroom flat, which means the £14,400 gross salary leaves you £1000 a year to live. Some kind of breakdown by region would be a lot more useful.

[Bellend Sebastian]

£14,400?

That barely covers my annual fois gras and swan consumption

[Trav Le Bleu]

Contrary to previous posters, if I had to, I could live on a lot less than £14,400.

The problem is people consider things like TV and a car as "necessities" - they're not. You'll survive without them if you have to.

[Bellend Sebastian]

I have just done some quick calculations and I think I could do it at a push as well, but it would involve getting rid of the car and probably drowning my cat into the bargain.

It's easy to get into the habit of pissing all your money away without even thinking about it. I earn literally twice as much money now as when I bought my house ten years ago, and even though my mortgage is less now, I don't seem to have that much more money. Then again, I didn't have a Sky subscription, a mobile phone, the internet, a pet, and I only left the house to go to work or Morrisons (I could have cut these trips down by going to work in Morrisons) when I bought my house.

I'm going to tell Murdoch where to go and throw my mobile and my cat in the canal RIGHT NOW

[Jon the Hat]

Contrary to previous posters, if I had to, I could live on a lot less than £14,400.

The problem is people consider things like TV and a car as "necessities" - they're not. You'll survive without them if you have to.

Well done.

[James.]

I refuse to do any calculations for fear that I haemorrhage an inexcusable amount of money on frivolous shit.

[Jon the Hat]

I have just done some quick calculations and I think I could do it at a push as well, but it would involve getting rid of the car and probably drowning my cat into the bargain.

It's easy to get into the habit of pissing all your money away without even thinking about it. I earn literally twice as much money now as when I bought my house ten years ago, and even though my mortgage is less now, I don't seem to have that much more money. Then again, I didn't have a Sky subscription, a mobile phone, the internet, a pet, and I only left the house to go to work or Morrisons (I could have cut these trips down by going to work in Morrisons) when I bought my house.

I'm going to tell Murdoch where to go and throw my mobile and my cat in the canal RIGHT NOW

Life has got a lot more expensive. Food and Petrol in particular are insane. Damn you Waitrose...

[davieG]

MrsG and I manage on a lot less than that single person figure but do have the advantage of being mortgage free. It just means no meals out, no shows, cheapo holidays, shopping at various supermarkets to get the best deals and a lot more shopping around and changing utility suppliers, which becomes like a full time job.

[Bellend Sebastian]

I refuse to do any calculations for fear that I haemorrhage an inexcusable amount of money on frivolous shit.

I'm sure you know that without doing any sums. We all do it

Life has got a lot more expensive. Food and Petrol in particular are insane. Damn you Waitrose...

I don't really notice petrol because I'm fortunate enough to walk to work.

Even allowing for my marginally more sophisticated adult tastes, I reckon my grocery bills have about doubled in ten years.

The main difference is that whenever I get invited on a night out, or for a birthday or whatever, I always go if I'm free. I can't remember the last time I declined an invitation because I didn't want to spend the money, which I often did when I earned less. So I've spent thousands on birthdays over the years, most of which I can barely remember

[FoxyPV]

So I've spent thousands on birthdays over the years, most of which I can barely remember

Seems like money well spent to me

[Bellend Sebastian]

I like to remember going, even if I can't remember being there

[Flynny]

I know a family with three kids get by perfectly well on about 11k.

[Jon the Hat]

I know a family with three kids get by perfectly well on about 11k.

Like I said, it is possible in some parts of the country, but not others.

[James.]

I'm sure you know that without doing any sums. We all do it

Of course. But there's a difference between the general awareness that I waste money and actually putting a figure on it. I'm in denial.

[Bellend Sebastian]

I'm in denial about a lot of things

[Webbo]

I know a family with three kids get by perfectly well on about 11k.

We've got 3 kids and we manage on less than £29k.

Edit: We also run 2 vehicles and we have a TV.

[Flynny]

Bit over-regulatory, but the government could save quite a bit of money if they regulated the extortionate prices of houses proximate to universities. I live in a 2-story flat above a shop, not very nice, no carpet, needs a lick of paint, basic white-goods only, and our rent is 340 a month each. Times six. Our landlord takes £2040 a month and the mortgage literally can't be more than £1000, probably much less with interest rates what they are.

I'm sure there'd be all sorts of unintended effects but if maximum rent was tied to the cost of a 20-year mortgage times 1.5 then I wouldn't need half the amount of student grants and loans that I get - as it is 8.5k a year feels like very little.

I guess it'd be impossible to do how I've described it but I do wonder if there's a way of sorting it out.

[Jon the Hat]

Bit over-regulatory, but the government could save quite a bit of money if they regulated the extortionate prices of houses proximate to universities. I live in a 2-story flat above a shop, not very nice, no carpet, needs a lick of paint, basic white-goods only, and our rent is 340 a month each. Times six. Our landlord takes £2040 a month and the mortgage literally can't be more than £1000, probably much less with interest rates what they are.

I'm sure there'd be all sorts of unintended effects but if maximum rent was tied to the cost of a 20-year mortgage times 1.5 then I wouldn't need half the amount of student grants and loans that I get - as it is 8.5k a year feels like very little.

I guess it'd be impossible to do how I've described it but I do wonder if there's a way of sorting it out.

How many months does your landlord get the £2040? You also have to take into account periods where he has less than full capacity, or no tenants at all, when he still has to pay the mortgage.

[Shrenchel]

Bit over-regulatory, but the government could save quite a bit of money if they regulated the extortionate prices of houses proximate to universities. I live in a 2-story flat above a shop, not very nice, no carpet, needs a lick of paint, basic white-goods only, and our rent is 340 a month each. Times six. Our landlord takes £2040 a month and the mortgage literally can't be more than £1000, probably much less with interest rates what they are.

I'm sure there'd be all sorts of unintended effects but if maximum rent was tied to the cost of a 20-year mortgage times 1.5 then I wouldn't need half the amount of student grants and loans that I get - as it is 8.5k a year feels like very little.

I guess it'd be impossible to do how I've described it but I do wonder if there's a way of sorting it out.

You could live 20 minutes walk away from Bristol Uni for half that. Hardly the government's fault that you want to live over the road or up in Clifton/Redland with the rest of the cvnts.

[AoWW]

Contrary to previous posters, if I had to, I could live on a lot less than £14,400.

The problem is people consider things like TV and a car as "necessities" - they're not. You'll survive without them if you have to.

That very much depends on where you live. Yes, technically I'd survive without a car but living in a rural village with no useful form of public transport (it only provides the option of getting to the nearest town late in the evening and coming back the next morning, for example!) I wouldn't be able to work unless I got a job in the village shop and certainly wouldn't be able to keep my current job. Prostitution would be the only viable option, and I'm not sure I'd earn much doing that.

[Smudge]

That very much depends on where you live. Yes, technically I'd survive without a car but living in a rural village with no useful form of public transport (it only provides the option of getting to the nearest town late in the evening and coming back the next morning, for example!) I wouldn't be able to work unless I got a job in the village shop and certainly wouldn't be able to keep my current job. Prostitution would be the only viable option, and I'm not sure I'd earn much doing that.

A wife in desperation takes to the streets.

She comes home after her first night.

"Well how much did you make?" Her husband asks.

"£29 and 10p", she replies

"Who gave you the 10p? He asked.

"Everyone!

'Bum Tish'

[Flynny]

You could live 20 minutes walk away from Bristol Uni for half that. Hardly the government's fault that you want to live over the road or up in Clifton/Redland with the rest of the cvnts.

Cheapest I could find last year was £290 and that was a dump 30 minutes away. Looked at a couple of houses around Gloucester Road, Hotwells, etc; living in Rahland wasn't really a priority. People seem to think the place we actually ended up in is cheap for £340, it's obscene. Probably save £30-40 a month on buses, taxis, buying lunch at greggs, etc being a minute away from the Wils Building but I'd have happily paid less and walked further.

[Flynny]

How many months does your landlord get the £2040? You also have to take into account periods where he has less than full capacity, or no tenants at all, when he still has to pay the mortgage.

Hah I thought of that but the flat is only empty 1 week a year, we pay 12 months.