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Is £14,400 really enough to live on? | |
(1 day later) | |
By Edwin Lane Business reporter, BBC News Even those living above the poverty line are struggling with the cost of living | By Edwin Lane Business reporter, BBC News Even those living above the poverty line are struggling with the cost of living |
A salary of £14,400 is the minimum a single person needs for an acceptable standard of living, according to research by the Joseph Rowntree Foundation (JRF). | A salary of £14,400 is the minimum a single person needs for an acceptable standard of living, according to research by the Joseph Rowntree Foundation (JRF). |
That includes not only basics like food and housing, but also the essentials needed to "participate fully in society", the charity says. | That includes not only basics like food and housing, but also the essentials needed to "participate fully in society", the charity says. |
That means spending on mobile phones, internet access and socialising is included. | That means spending on mobile phones, internet access and socialising is included. |
It puts earners above the official government poverty threshold and is also significantly higher than the amount you would expect to earn on the minimum wage (£5.80 an hour). | It puts earners above the official government poverty threshold and is also significantly higher than the amount you would expect to earn on the minimum wage (£5.80 an hour). |
But is £14,400 really enough to meet our everyday needs? | But is £14,400 really enough to meet our everyday needs? |
"My annual salary is exactly £14,400," says Carl Leishman, a 28-year-old call centre worker from County Durham, "and I find it an incredible struggle." | "My annual salary is exactly £14,400," says Carl Leishman, a 28-year-old call centre worker from County Durham, "and I find it an incredible struggle." |
After tax, Mr Leishman takes home just under £1,000 a month - barely enough, he says, to cover his costs. | After tax, Mr Leishman takes home just under £1,000 a month - barely enough, he says, to cover his costs. |
"My rental costs are £400 per month, council tax is £120, household bills are £150, and food is £150," he says. | "My rental costs are £400 per month, council tax is £120, household bills are £150, and food is £150," he says. |
Cutting costs | Cutting costs |
"Now factor in that I haven't included the loan I have for my car, my car insurance, my car tax, fuel or socialising costs and you get the picture of exactly how far the £180 I supposedly have left each month will get me." | |
In the JRF research, owning a car was not viewed as essential, meaning that motoring costs were not included in its figures. | In the JRF research, owning a car was not viewed as essential, meaning that motoring costs were not included in its figures. |
But Mr Leishman says that for many people, having access to car is not a luxury. | But Mr Leishman says that for many people, having access to car is not a luxury. |
"Not running a car really isn't an option for me. Travelling to work by public transport would be more expensive and would turn a 12-hour shift into at least a 14-hour day," he says. | "Not running a car really isn't an option for me. Travelling to work by public transport would be more expensive and would turn a 12-hour shift into at least a 14-hour day," he says. |
"But even without car costs, it would still be a struggle. | "But even without car costs, it would still be a struggle. |
"I'm constantly looking at how to cut my costs. Moving back to live with my parents is something I'm having to seriously consider." | "I'm constantly looking at how to cut my costs. Moving back to live with my parents is something I'm having to seriously consider." |
Mr Leishman is not alone. Government figures suggest that about 30% of workers in the UK are paid less than £14,820, subjecting them to similar financial pressures. | Mr Leishman is not alone. Government figures suggest that about 30% of workers in the UK are paid less than £14,820, subjecting them to similar financial pressures. |
Austerity fears | Austerity fears |
The short-term prospects for the economy suggest that this picture will not improve any time soon, while the government's austerity measures will see the incomes of even the lowest-paid cut by at least 0.5%, according to June's emergency Budget forecast. | The short-term prospects for the economy suggest that this picture will not improve any time soon, while the government's austerity measures will see the incomes of even the lowest-paid cut by at least 0.5%, according to June's emergency Budget forecast. |
But despite the recession and the "age of austerity" still to come, the JRF research still shows that people retain their pre-recession expectations for their quality of life. | But despite the recession and the "age of austerity" still to come, the JRF research still shows that people retain their pre-recession expectations for their quality of life. |
Home internet access is now seen as essential | Home internet access is now seen as essential |
"Members of the public involved in the research have not reduced what they consider necessities," the report points out. | "Members of the public involved in the research have not reduced what they consider necessities," the report points out. |
"They still believe that, as a minimum, people need not just physical essentials... but also things that allow them to participate in society." | "They still believe that, as a minimum, people need not just physical essentials... but also things that allow them to participate in society." |
Spending on birthdays and Christmas are not seen as optional, while a week's holiday, even if in the UK, is the minimum expected. | Spending on birthdays and Christmas are not seen as optional, while a week's holiday, even if in the UK, is the minimum expected. |
That suggests the public might not be as happy about reducing their standard of living as the government might have hoped. | That suggests the public might not be as happy about reducing their standard of living as the government might have hoped. |
"I don't think the public are at all prepared for what is to come," admits David Furness of the Social Market Foundation, an independent think tank. | "I don't think the public are at all prepared for what is to come," admits David Furness of the Social Market Foundation, an independent think tank. |
"The public still seems to think we can make the necessary cuts through improving the efficiency of our public services. | "The public still seems to think we can make the necessary cuts through improving the efficiency of our public services. |
"But the reality is, the standard of public services will drop - and living standards could drop as a result, too." | "But the reality is, the standard of public services will drop - and living standards could drop as a result, too." |
"If we're going to rebalance the economy, we can expect some very big shocks." | "If we're going to rebalance the economy, we can expect some very big shocks." |
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