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Families need £36,800 to live acceptably, study says | Families need £36,800 to live acceptably, study says |
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A couple with two children now need to earn £36,800 a year to have a "socially acceptable" standard of living, an anti-poverty charity says. | A couple with two children now need to earn £36,800 a year to have a "socially acceptable" standard of living, an anti-poverty charity says. |
The Joseph Rowntree Foundation said its annual minimum income study suggests families must earn a third more than in 2008, to live within social norms. | The Joseph Rowntree Foundation said its annual minimum income study suggests families must earn a third more than in 2008, to live within social norms. |
But the report has been dismissed as "mostly rubbish" by the head of think tank the Adam Smith Institute (ASI). | |
The government said it was committed to helping the UK's "most vulnerable". | The government said it was committed to helping the UK's "most vulnerable". |
The minimum income standard (MIS) study - commissioned by the charity from the social policy research unit at Loughborough University - suggests a rising number of UK people live below what the public believes is an acceptable standard of living. | The minimum income standard (MIS) study - commissioned by the charity from the social policy research unit at Loughborough University - suggests a rising number of UK people live below what the public believes is an acceptable standard of living. |
This MIS standard includes earning enough to eat a balanced diet, run a car and heat the home. | This MIS standard includes earning enough to eat a balanced diet, run a car and heat the home. |
Researchers questioned 21 focus groups made up of working families, pensioners and single people of working age on a range of incomes. | |
A couple with two children were said to need to earn a minimum of £18,400 a year each before tax; single people £16,400 a year, while the figure for lone parent with one child is £23,900 and a pensioner couple £12,000 each. | A couple with two children were said to need to earn a minimum of £18,400 a year each before tax; single people £16,400 a year, while the figure for lone parent with one child is £23,900 and a pensioner couple £12,000 each. |
The study said families are being hit hard by a "dangerous cocktail" of rising costs and cuts in three main areas: | The study said families are being hit hard by a "dangerous cocktail" of rising costs and cuts in three main areas: |
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JRF chief executive Julia Unwin said families faced a "monumental task" to earn enough to get by. | JRF chief executive Julia Unwin said families faced a "monumental task" to earn enough to get by. |
"Parents facing low wages and pressure on their working time have little prospect of finding the extra money they need to meet growing household expenses. | "Parents facing low wages and pressure on their working time have little prospect of finding the extra money they need to meet growing household expenses. |
"Many working people face the risk of sliding into poverty. It illustrates how anti-poverty measures are needed to address not just people's incomes but also the costs that they face." | "Many working people face the risk of sliding into poverty. It illustrates how anti-poverty measures are needed to address not just people's incomes but also the costs that they face." |
The research also states that the level of Universal Credit - the government's new benefits system being brought in January 2013 - will strongly influence the ability of households to reach MIS. | The research also states that the level of Universal Credit - the government's new benefits system being brought in January 2013 - will strongly influence the ability of households to reach MIS. |
'Silly question' | |
Both the results and methodology of the study have been questioned by Dr Eamonn Butler, director of the think tank ASI, who said the report was "mostly rubbish". | |
"If you ask a silly question you get a silly answer and I think this is a very silly answer. | |
"The idea that one needs a laptop, a DVD player, a microwave, a blender and a roof rack on your car and so on, and indeed a car in the first place when most of us live in cities and public transport has not actually changed very much in the last five years are very strange answers." | |
Dr Butler added that the study risks arousing people's expectations around welfare payments when "most of the public (75%) think benefits are too high". | |
But the study was defended by its co-author Donald Hirsch, who said the research was "significant" and "hugely robust". | |
"In terms of reliability... we have held over 100 groups over a period. Each group is checking back on what other groups say. | |
"It is not just one person at the ASI's opinion, it is groups of people coming to agreement... and then confirming it with subsequent groups," he added. | |
The government said it was forced to make "tough choices to repair the country's finances". | The government said it was forced to make "tough choices to repair the country's finances". |
A spokesperson added: "It is vital that we give young children the best start in life and that is why we are rolling out free early education, backed by more than £1bn, to help children and their parents. | |
"We recognise that child care costs are an issue and that is why the prime minister launched a commission into this matter which will report back in the autumn. | "We recognise that child care costs are an issue and that is why the prime minister launched a commission into this matter which will report back in the autumn. |
"We are also introducing Universal Credit from 2013, which will simplify the system and ensure that work pays." | "We are also introducing Universal Credit from 2013, which will simplify the system and ensure that work pays." |
* Excluding council tax ** If both members of couple work full time |