how much is too much?

KRaikkonen

Hi, I am after your guys opinions on household rent. The situation is, I have just entered my first job (apprenticeship) on a wage approx 13k per annum. Living at home with parents in a 4 bedroom house.

Now, since I have started this job my mum and dad have said to me that the housing are asking for rent and council tax payments. This has been ongoing for a few months now with the outcome being a direct debit set up in my name for the rent account in my mum and dads name.

Now I'm not 100% sure but my parents have told me that their rent has increased as I am now classed as a non dependant and I think they're rent has increased. So I currently have a direct debit set up with approx £80 going out weekly for rent and a bit for the owed amount that they have backdated. My wage is just under 1k a month.

Does this seem right to you guys because I am getting quite a bit of hassle with this, and I keep having to send every months payslip in? Council tax is also £7.

I have tried mentioning this to some if my mates at work, but none of them seems to be paying anything out to rent or council tax.
Thanks, hope that makes sense, any help appreciated!

Fireflyaway

I think on your income ( if its over £245 per week gross) the weekly rate for rent is £72.95 and £6.55 rates. Looks like you may be just over the lower bracket which is nearly half that amount. Are you over 18?

G_M

Alternative is to move out and get your own place. Pay your own rent etc and be in full control of your own finances.

KRaikkonen

Hi thanks for the quick replies! I am over 18.

I think I am just over the lower bracket with my current wage (although I am not being taxed on my wage yet).

Thanks

agrinnall

You mention Council Tax, were your mum and dad already paying it? If they were, were they both eligible to pay - in which case you won't be adding any extra to the bill (although it's still reasonable for you to pay a share of it)? If only one was eligible, or neither were, then your presence means they'll be paying more then previously.

KRaikkonen

agrinnall wrote: »

You mention Council Tax, were your mum and dad already paying it? If they were, were they both eligible to pay - in which case you won't be adding any extra to the bill (although it's still reasonable for you to pay a share of it)? If only one was eligible, or neither were, then your presence means they'll be paying more then previously.

Yes I think they were already paying it. I am not sure if they were both eligible to pay it. I've just been told with regards to council tax that I have to pay £60 backdated payment.

With regards to this rent, are you guys saying that it is normal for me to be paying the amount that I am. As it seems like I am struggling more financially since I have gotten this good apprenticeship than I was before. Seems like I'm being punished for working. As in I'm in a similar situation to where I was sitting at home with no job, but paying no major bills, to where I am now working 8-4/5 5 days a week and being paid but I now have outgoings of over 50% of my wage monthly.

I suppose I would be fine with it, but I think it's the fact that All Of my work colleagues who are in the exact same situation and of similar ages do not pay rent or council tax at all, therefore they have no bills going out and have pretty much the whole wage coming in monthly.

Thanks.

pmlindyloo

Let's make this very clear.

Your mum and dad must be receiving housing benefit and council tax support for non dependant deductions to apply.

You can look up the amounts on your local council's website.

If they are receiving HB and CT support then they are having a deduction made and are asking you to make up that deduction.

But you are not liable for either the rent or the council tax.

If they are not receiving HB and CT support then the amounts they are paying will be no different to what they were paying before you started work.

Obviously from what you are saying they are receiving benefits. If either is on DLA/PIP then there should be no non dependant deductions.

Look at your local council's website.

You are not liable for the rent or the council tax BUT if your parents have lost out moneywise then it seems proper that you make up that loss. If that is the only loss that you are making up then you are getting everything else (food, electricity etc) FREE.

As for your friends then it is likely their parents are not on benefits and can choose what they ask for their 'keep'.

AndyT678

KRaikkonen wrote: »

Seems like I'm being punished for working. As in I'm in a similar situation to where I was sitting at home with no job, but paying no major bills.

But now you are investing in your future and earning the respect of your family and peers.

Short term pain; long term gain.

caprikid1

Welcome to the real world.

I suspect many of us would like half of our income left over !.

Work hard at your Job and good luck with earning more money.

agrinnall

caprikid1 wrote: »

Welcome to the real world.

I suspect many of us would like half of our income left over !.

Work hard at your Job and good luck with earning more money.

I've just calculated that around 45% of my take home wage goes on rent, CT and utilities. When you add in all the other costs of existing - contents insurance, car insurance, VED, petrol, car servicing, food and the myriad other things that life requires - I'm probably closer to committing 80% of my wage. The rest goes on savings, holidays, entertaining, etc.

For the OP, if you have 50% of your wages left over you should think about budgeting it, you'll need some for spending money but if you start saving up now you'll eventually be able to move out to a place of your own and your parents can get their income level back (in fact they'll be better off as they won't have to pay for your food, do your washing and ironing, heat your room, etc.).