Living costs have reached £14,400 for a single person
Increased living costs – It now costs £29,200 a year to keep a family research shows
The Joseph Rowntree Foundation (JRF) publishes its annual update on ‘minimum income standard’.
They review what people think is an essential living cost.
Key Points
- A single person in the UK needs to earn at least £14,400 a year before tax to afford a basic standard of living
- A couple with two children needs £29,200
- The minimum household budget has risen by 4%
- Since 2000, living standards have fallen by over 10%
- People do not just need physical essentials now, but also things that allow them to participate in society
- A computer and internet connection are considered essential
- With tax allowances and credits not being increased under the new budget, it means people need to earn substantially more to afford the increased cost of living
Changes
- The cost of a minimum household budget for a single person has risen by 38% in the last decade
- Bus fares have risen by 60% since 2000
- People on low incomes are facing much higher inflation rates
- With a society change, the minimum standard of living also changes; for example, a basic budget for going out is expected, it is a necessity to buy birthday presents, and it is essential to have a week’s holiday each year, although not abroad
- Items such as fridge-freezers, DVD players and mobile phones should be affordable
- Owning a computer and having access to internet at home is essential for all working-age households
- Computers and internet are now included in the 2010 budgets for working-age people
The salary required to reach the minimum income standard remains well above the National Minimum Wage (presently £5.80 per hour). Minimum Income Standard budgets suggests that the recession may have resulted in reductions in standards of living, but not a change in the view of what is acceptable.
Payplan
If you’re struggling to pay your bills and are behind with debts due to increased living costs, then contact Payplan for debt advice online or telephone 0800 280 2816.
Written by on July 9th, 2010
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