My SOA (IPA opinion)

youngbuck2

Went BR a few weeks ago. I am unemployed and on JSA but looking to study for a degree through distance learning and work part time (20 hours a week). Expect to be earning around minimum wage around £570 a month. OR said no interested in an IPA until I start working. With that in mind, here is my anticipated SOA...

Household Information
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 570
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 0

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 340
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 180
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 565



Monthly Budget Summary
Total monthly income.................... 570
Expenses................................ 565
Surplus................................. 5


I don't pay any rent as I'm unemployed but my parents have said they expect rent when I start working, we agreed on £350 a month (including bills). I expect I will spend around £180 on food for myself, £15 for a pay as you go mobile top up, and £20 for clothing. I don't have access to a car and intend to walk/cycle to work.

So my questions are:

1. From my SOA above, do my figures look reasonable expenses, and if so, does it look like I will be asked to sign up for an IPA?

2. There is a chance to do overtime in the job I am applying to (a few hours extra a week regularly). Is there anything on my SOA I have forgotten to add?

3. What are reasonable allowances for things like dentist, haircuts, holidays, emergency funds etc? I mean if I add £10 for each of those (total of £40) will the OR refuse? Is it okay to say "I want to set aside £10 a month to save to pay for a dental check up every 6 months?"

4. Any other advise/suggestions?

National_Debtline

Hi youngbuck


Feedback in italics below.

youngbuck2 wrote: »

I don't pay any rent as I'm unemployed but my parents have said they expect rent when I start working, we agreed on £350 a month (including bills). I expect I will spend around £180 on food for myself, £15 for a pay as you go mobile top up, and £20 for clothing. I don't have access to a car and intend to walk/cycle to work.

So my questions are:

1. From my SOA above, do my figures look reasonable expenses, and if so, does it look like I will be asked to sign up for an IPA?


At a glance the expenses seem fine to me. Assuming you are aged 21+, it looks like your job doesn't pay much more than the national minimum wage so my instinct would be to say no, an IPA is not very likely here. The OR is very unlikely to query what board parents charge unless it looks artificially high - and I don't know what part of the country you're in but you would be hard pushed to do better than £340pcm for rent + bills in a private let!


2. There is a chance to do overtime in the job I am applying to (a few hours extra a week regularly). Is there anything on my SOA I have forgotten to add?


If your parents are effectively undercharging you for your share of the bills, you could offer to pay a "fairer" contribution towards them. As for everything else, it's really just a case of building yourself a reasonable emergency fund and making sure the OR is aware of the extra hours.


3. What are reasonable allowances for things like dentist, haircuts, holidays, emergency funds etc? I mean if I add £10 for each of those (total of £40) will the OR refuse? Is it okay to say "I want to set aside £10 a month to save to pay for a dental check up every 6 months?"


The OR will use general guidelines to determine what is and what isn't "reasonable" expenditure, but equally has discretion over individual items. If you can make a persuasive case for being allowed to save £10 monthly towards dental costs, they can allow it. Conversely, some ORs may be more rigid and allow just the cost of a basic 6-monthly check-up (roughly £20 where I come from).


4. Any other advise/suggestions?

Just to say that in my experience, most ORs won't split hairs on a budget like yours for the reasons I mentioned above. At worst they might yield, say, £30-£40 a month through an IPA, and for that sort of outcome I wouldn't expect them to bother fussing too much over your precise outgoings.

Good luck!


Dennis
@natdebtline

owlet

You could put your £5 surplus to hair cuts. If you get any over time then depending on how much, you can add in to holiday & emergency fund and up the hair cut to a reasonable level.

You will also need to buy things for your studies and it's surprising how that adds up - so some over time money could go towards that too.

Your SOA is an agreement & negotiable. It isn't set in stone. If you don't agree with the OR then negotiate!

You have 21 or 28 days (can't remember which) to notify change of circumstances and this can be done as often as necessary. Change of circumstances is income going up or down as well as major expenses tht may crop up.

youngbuck2

Thanks guys, I didn't think it was too excessive.

What are the "normal" allowances for the following to be acceptable:

-'Emergency' fund
-Holidays (not too bothered but if its allowed then I will mention it)
-Haircuts
-Dental

youngbuck2

National_Debtline wrote: »

...roughly £20 where I come from (dental checkups)

£20 a month towards a checkup?

I'd really like to avoid an IPA so would rather be safe

luvchocolate

I think he meant the check up was approx £20.
I was approved £20 per month for dental/glasses

youngbuck2

Another question..

Let's say OR agrees to no IPA as I only have £5 surplus each month normally. Then say over the next 6 months (still undischarged) I get paid £50 overtime on a couple of occasions, would I have to give that to the OR?

egrescrimp

How do you plan on travelling to this future job? Walking might not be ideal in winter

egrescrimp

youngbuck2 wrote: »

Another question..

Let's say OR agrees to no IPA as I only have £5 surplus each month normally. Then say over the next 6 months (still undischarged) I get paid £50 overtime on a couple of occasions, would I have to give that to the OR?

You would need to make them aware of anything extra you earn, it's then down to the OR to decide whether it's worth collecting from you or not.

They have guidelines to follow, but you may have an OR who's nice and says you can have it or you may have one who demands you hand over the £55.

owlet

Or if you get a £50 bonus you might find you need to buy something & you can negotiate with the OR.

owlet

youngbuck2 wrote: »

Thanks guys, I didn't think it was too excessive.

What are the "normal" allowances for the following to be acceptable:

-'Emergency' fund
-Holidays (not too bothered but if its allowed then I will mention it)
-Haircuts
-Dental

Haircuts £10-£15 check local prices
Emergency £10
Holidays £10
Dental - don't know but I'd have thought £10