Just done a calculation for a family, as was highlighted by someone here on about 70k net.
Lowered the council tax from Band H to Band F so about 300 a month ( with a little bit left over).
Mortgage of 1,500.
Apparently this puts them in the 40th percentile ( not sure if this is accurate at all, as this is now mostly discretionary income).
But an income of 928 per week to spend.
After fees for one child at secondary this is totally doable. Gives them 2755 a month to live on.
But again, with two, not at all, as it leaves 1225 PCM, or 289 a week to cover everything else.
Lets throw in the average bursary of 35% for both children so 23,400 a year for both in fees.
This comes out with a monthly left over of 2071, can they afford an extra 146 pounds a month in VAT? This would leave them with, 1925 per month. Maybe, it is very possible.
But this is massively dependent on both children getting bursaries that are the average. They couldn't possibly afford two children at private school. Even with the bursaries, with 2 children and 2 adults working ( without VAT) it could be a significant push.
But the thing is, to get 70k a year after tax both parents have to be earning 32% more each than the average salary of 34k. This makes me question the data on the calculator somewhat.
So in reality, can people on what are more than average incomes afford PE for two children, even with a significant bursary? Yes. Can they afford the VAT rise? Just about. But neither situation leaves much room for error and has significant sacrifices involved.