[ufo2012]

So we all know that as reported, the cost of living has been rising.

They keep telling us so.


So most recently now, we are told:

Families need £36,800 to live acceptably, study 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.
http://www.bbc.co.uk/news/uk-18770783

...families must earn a third more than in 2008, to live within social norms.

http://www.jrf.org.uk/focus-issue/mi...come-standards


23% Rise in the minimum household budget for family of 4 from 2008 to 2012.




With unemployment yet continuous rising costs, how do we achieve this magic figure for every family?

Increased minimum wage?

Increase JSA for those on JobSeekers?

...and what about those who don't make enough?


The study claims that the average single person needs to spend £193 a week (not including rent) to achieve a minimum standard of living.

£16,400 - Annual income needed for a single person to achieve minimum standard of living.



A single person should be earning at least £8.38 per hour or a couple with 2 children need to be earning £9.39 each per hour


Thoughts on all of this?

[Martyn*]

I wouldn't hold your breath. Most people here believe that you can live in luxury on £71 per week.

[Bill_Gates]

Families need £36,800 to live acceptably

Do you agree with it?

Personally i grew up on alot less than that and felt i had an acceptable standard of living.

Source:

http://www.bbc.co.uk/news/uk-18770783

[Guybrush Sheepgood]

Just looking at that study briefly, it doesn't really make sense. I mean, it doesn't take into account the assets that you already own, and makes wild assumptions like: £40 of clothing and £93 on entertainment per week? It probably assumes things like going to a fancy restaurant dinner once or twice a week with the whole family and buying a coat for one family member each week. I think you can have a perfectly acceptable standard of living without those calculations.


Edit: whoops i didn't realise you could expand those things

[Classical Liberal]

Depends on where you live.

London, maybe.

Up north. Seems like enough.

[Hylean]

If that were true, then a great deal of people in the world are not living "acceptably"; even in the UK the average wage is well below that.

[Snagprophet]

There's no doubt that a family of four can live comfortably on £36,800, but my thoughts go to my ex's family of five living on £30,000 with the only issue being a moneytrap of a house they currently live in.

**** this article.

[fudgesundae]

(Original post by Bill_Gates)
Families need £36,800 to live acceptably

Do you agree with it?

Personally i grew up on alot less than that and felt i had an acceptable standard of living.

Source:

http://www.bbc.co.uk/news/uk-18770783

Well you do know that cost of living increases? It even states in the article that just 4 years ago you needed about £10,000 less than that to live acceptably.

(Original post by Guybrush Sheepgood)
Just looking at that study briefly, it doesn't really make sense. I mean, it doesn't take into account the assets that you already own, and makes wild assumptions like: £40 of clothing and £93 on entertainment per week? It probably assumes things like going to a fancy restaurant dinner once or twice a week with the whole family and buying a coat for one family member each week. I think you can have a perfectly acceptable standard of living without those calculations.

http://mis.jrf.org.uk/

That shows the breakdown of where the money gets spent every week. There is no family dinner at fancy restaurants or someone buying a £40 coat every week.

[Picture~Perfect]

(Original post by Bill_Gates)
Families need £36,800 to live acceptably

Do you agree with it?

Personally i grew up on alot less than that and felt i had an acceptable standard of living.

Source:

http://www.bbc.co.uk/news/uk-18770783

In all fairness many things are considered to be more expensive these days, this is somewhat of a continuing theme, as such it makes sense that the average household income would need to be greater.

[fudgesundae]

(Original post by Hylean)
If that were true, then a great deal of people in the world are not living "acceptably"; even in the UK the average wage is well below that.

http://www.telegraph.co.uk/finance/p...ght-years.html

Average household income = £39,468 in May 2012.

The average wage is well below that, but most households with 2 parents, 2 children have 2 working parents.

[RobertWhite]

Most people on TSR probably don't plan to be phased by a fact like this

Oh no! Now I have to try and earn over my previously planned life salary of 21k a year!

Nah, most of us plan to be millionaires

[Hylean]

(Original post by fudgesundae)
http://www.telegraph.co.uk/finance/p...ght-years.html

Average household income = £39,468 in May 2012.

The average wage is well below that, but most households with 2 parents, 2 children have 2 working parents.

True, and having looked at the break down, I can see where they're coming from.

[doggyfizzel]

(Original post by Hylean)
If that were true, then a great deal of people in the world are not living "acceptably"; even in the UK the average wage is well below that.

I think the average individual may be, but joint income seem to remember is about £25k take home which equates to about £37k before tax.

Seems pretty realistic. Average salary is about £25k before tax, so one average parent and one less than average or part time. Seems pretty true.

My family income is way above that, and I don't live a privileged life. State school, just enough bedrooms, cheap county to live in, 1 car.

[AlmostChicGeek]

(Original post by fudgesundae)
Well you do know that cost of living increases? It even states in the article that just 4 years ago you needed about £10,000 less than that to live acceptably.




http://mis.jrf.org.uk/

That shows the breakdown of where the money gets spent every week. There is no family dinner at fancy restaurants or someone buying a £40 coat every week.

Why would you need to spend £40 every week on clothes The breakdown confuses me a bit, because that part for one thing doesn't seem to make sense. I don't know anyone that spends £40 every week on clothes, should I be? Perhaps I am missing out on that requirement or something!

[fudgesundae]

(Original post by Hylean)
True, and having looked at the break down, I can see where they're coming from.

Childcare seems to be the biggest expense. Something like 20% of the weekly spending. Like you, I can see where they are coming from and it looks pretty reasonable.

(Original post by AlmostChicGeek)
Why would you need to spend £40 every week on clothes The breakdown confuses me a bit, because that part for one thing doesn't seem to make sense. I don't know anyone that spends £40 every week on clothes, should I be? Perhaps I am missing out on that requirement or something!

It seems to me that they have averaged it over the whole year. So if you buy two pairs of shoes for each of your two children and this comes to £100, then they would count that as having spent £2 a week on children's shoes. Same applies with the items of clothing.

[Robbie c]

Acceptable to who?

I know that my family lives perfectly happily on <£26,000 from a single income.

[AlmostChicGeek]

(Original post by fudgesundae)
Childcare seems to be the biggest expense. Something like 20% of the weekly spending. Like you, I can see where they are coming from and it looks pretty reasonable.




It seems to me that they have averaged it over the whole year. So if you buy two pairs of shoes for each of your two children and this comes to £100, then they would count that as having spent £2 a week on children's shoes. Same applies with the items of clothing.

Ah right thanks, that makes more sense!

[Hopple]

(Original post by fudgesundae)
http://mis.jrf.org.uk/

That shows the breakdown of where the money gets spent every week. There is no family dinner at fancy restaurants or someone buying a £40 coat every week.

There's £148 per week on childcare, wtf? That's £7.7k for the year! If you really want to include that then you're saying that both kids are too young to be at school (they've included a pushchair) so forget the school costs and the "parents' social and leisure activities", and things like school trips. I think if you look at the breakdown it seems that the children are in need of everything they might ever need at all ages.

[Annoying-Mouse]

Family A consists of two parents both who work. Parent A works 09:00-17:00 except on Friday and Sunday. Parent B works on 10:00-15:00. They live in a three bedroom house in Barking.

£18,994 (couples combined salary post-tax) + £4,004.54 (tax credit) = £22,999.10. £22,999.10 + £6,162.10 (housing benefits) = £29161.20. £29161.20 + £1,757.21 (child benefits) = £30,918.41. £30,918.41 - £13,200 (rent) = £17,718.41. £17,718.41 - £2736 (transport [zone 1-4] for both of them) = £14,982.41. £14,982.41 - £2000 (Lidl/Costco) = £12,982.41 - £3000 (annual cost of bills) = £9982.41. £9982.41 - £720 (sky broadband + phone + TV) = £9,262.41. £9,262.41 - £2000 (clothing) = £7262.41. £7262.41 - £3000 (child care on holidays or day camps or whatever) = £4262.41. £4262.41 - £1200 (holiday to dublin and staying at a hotel for two weeks) = £3062.41. The rest can be spent on little weekend gateways and social life for parents.

In this example, all that was needed was £30,918.41. I guess you can make an argument saying it's much higher because council tax was reduced. They could be right. We seem to be already hitting that figure for most people and most people can live comfortably with the right budgeting.

Your suggestions are laughable though. Increasing minimum wage (by the amount it will take to reach that figure) will increase cost of living thus back to square one.

[fudgesundae]

(Original post by Robbie c)
Acceptable to who?

I know that my family lives perfectly happily on <£26,000 from a single income.

Members of the public. It's a pretty in-depth study if you look at the breakdown.