MSE News: The £14,400 minimum cost of living

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"People on low incomes are increasingly struggling to get by due to soaring inflation, research suggests today ..."

Read the full story:

The £14,400 minimum cost of living

ViolaLass

I'm sure I'm not going to be the only one with this view but I think the figure given is nonsense. I lived in Central London (Zone 1) until a year ago, rented a flat, went out, travelled to work, paid all my bills, had treats like a proms season ticket (I did these things instead of travelling for a holiday, for choice, not because I felt I couldn't afford a holiday) and I calculated that I needed approx £10k a year (before tax) to live, the rest was savings.

UnderPressure

It is funny this should be posted today as only last night I was having a chat with my better half, I was saying that 3 years ago we had exactly the same amount of money coming in as we do now, back then we 9 times out of 10 had all the bills paid freezer and cupboards full of food, trip to Mcdonalds every week with the kids a day out here and there, a drink or 3 at weekend and still had loose change in our pockets.

Now though for the last 12 months it has been nothing but a struggle for the life of me I could not understand why, no huge change in circumstances no huge change in income life just seems on the whole so much more expensive today than it did 2 or 3 years ago, I still cannot put my finger on exactly what is costing more and can only think that it is maybe a small percentage on everything.

Life is a struggle at the moment not just for me for lots of people you only have to read the boards here to see that, and with VAT set to rise and cuts here there and everywhere it looks like it can only get worst

Still we have to go through this I suppose it is the proce for all the "boom" lol, just sad that it wasn't all of us that experienced the boom to begin with

mystic_trev

I've stuck it on another thread, but some might find this useful?

http://www.minimumincome.org.uk/

UnderPressure

mystic_trev wrote: »

I've stuck it on another thread, but some might find this useful?

http://www.minimumincome.org.uk/

Not sure if it is just me but I am getting a Firefox unable to connect with this site?

mystic_trev

UnderPressure wrote: »

Not sure if it is just me but I am getting a Firefox unable to connect with this site?

Looks like it can't cope with the amount of 'hits' it's getting!

bootman

UnderPressure wrote: »

It is funny this should be posted today as only last night I was having a chat with my better half, I was saying that 3 years ago we had exactly the same amount of money coming in as we do now, back then we 9 times out of 10 had all the bills paid freezer and cupboards full of food, trip to Mcdonalds every week with the kids a day out here and there, a drink or 3 at weekend and still had loose change in our pockets.

We had the same conversation in our house as well, 3 years ago we had 2 holidays as well as full cupboards and eating out. This year, same money no holiday this year, very rearely have a take away cupboards not quite full, and we earn decent money.

My rise in bills I think though is down to not being able to pay for the bulk of my shopping with money off vouchers in Tesco or Waitrose like I was doing, I don't know how people who have lots of children do it, I only have one and he eats me out of house and home!

michaels

It is interesting how things like holidays, eating out, smoking and alcohol have over time moved from the category of 'luxuries' to 'essentials'.

A lot of my spending is on food (the non-vat rated sort), gas, electricity and children's clothes, the VAT rise will make precisely zero difference so the effective inflation rate for these will (all else being equal) be lower than general inflation.

On the other hand, the housing costs they factor in seem to be about half of a realistic minimum for most of the South East unless you are lucky enough to be socially housed.

Tigsteroonie

mystic_trev wrote: »

I've stuck it on another thread, but some might find this useful?

http://www.minimumincome.org.uk/

Very interesting - and quite accurate in our case. On the basic calculator (making all appropriate adjustments), it says we need about another £120/wk to cover our costs. It's a good job that we actually get this extra in the form of DLA & CA, so we are breaking even.

(And before anyone starts suggesting I could get that extra income from working - I have a job interview this week :j )

Nottoobadyet

Crikey, the calculator uses a £68 pw rent as a base. Try finding that in london!

UnderPressure

Working now

Says we need £550.98 per week that is based on rent of £77 per week which in actual fact is more like £150 per week so factoring that in around £580 per week I wish!!!!!!!!!