Budget: 'I can't afford to leave home on £1,500 a month' and other claims.

[dessertz]

The BBC are focussing on a few brave volunteers to see how they will be impacted by the budget. Today's headline focuses on a 23 year old apprentice who is hoping for a rise in pay so he can leave home:
BBC News - Budget 2024: 'I can't afford to leave home on £1,500 a month' - BBC News
https://www.bbc.co.uk/news/articles/cwyv8y68e25o. Surely £1500 would be enough to afford a flatshare in Newbury? I mean, it might not stretch to a batchelor pad, but a flatshare should be affordable. It's more than most students live on at the same age. He is being paid reasonably for an entry-level job, and his pay will presumably go up when he qualifies.

The other one I didn't understand (in the same article) is the single mum earning £150k who thinks she is being punished for having children because she's earning too much to qualify for child benefit. 🤔

Hopefully the beeb just took their comments out of context. 🤷‍♀️

I love all the ‘yes but it’s apprentiship wage. Soon he’ll be able to earn more’.
Well yes but his earning potential isn’t going to help him f8 do so where to live NOW.

And I agree with @LarryUnderwood . £1300/month to live on isn’t much.

It all depends on an individual’s situation. I left home when I went to university as going back wasn’t an option. Was on my own and had to work with what I had. I lived in an expensive part of the country, did house shares and flats for longer than I would have liked but needs must. My savings built up steadily over 15 years until I could afford to buy a house. I do agree with other posters though, it’s hard to establish decent savings and pension while young when any and all savings are directed towards securing yourself a home. And this was several years ago, it’s even more of a challenge now.

The woman on 150k is ridiculous. Take off mortgage and childcare, and very generous nominal amounts for food, utilities and other bills, extra curriculars and other costs for kids, and potentially a car, and she still has at least £1200 every month (to save, go to restaurants, holiday, etc).

I’m quite conflicted here. On the one hand my son is almost 23 and my GOD, Will he never leave home? On the other hand how the fuck are the youngsters managing who don’t have support from their parents? How the hell are young care leavers managing, minimum wage workers?

the youngster with an apprenticeship is quite fortunate. His circumstances right now aren’t ideal but he will finish his apprenticeship at some point and, presumably, earn more.

but, jeez, we really are going to hell in a handcart.

I'm in my 40s. When I was a student and then in my 20s I lived in crappy house shares, with no spare cash , no 'luxuries' and a huge overdraft- like others I knew. I worked low wage, hourly paid, unstable jobs, with no family support to fall back on.But my rent wasn't more than 50% of my.take home pay. And I was in a shit situation, which I don't regard as one I would want anyone to be in. Just because you can afford to keep a roof over your head doesn't mean you can 'afford' to make financially insecure decisions. Fprnthat boy to move out, on his current wage, would be financially insecure.

If Newbury is like Bristol a flat only needs to think about being being let out and there's a queue to get it.

That’s only Monday to Friday?

It's just crazy
We are here arguing about whether he could afford to move out and some of those spare rooms are £900. For a ROOM. It's ridiculous

I do live in a cheaper area but you can rent a 2 bed apartment to yourself and pay c tax and gas/electric/water for £900

And over 30s only, and female preferred. Anything that cheap is going to have a major catch, right?

@buffyspikefaith 💯 nailed it. It astonishes me the way people will tie themselves in knots to argue people should put up with such crappy situations.

This is true. Just because someone technically can, doesn't make it a good idea. I certainly wouldn't want that for my daughter. I won't have money to give her for for a deposit, but I can give her a roof over her head for as long as she needs one and whenever she needs one to allow her to save and better her prospects.

(Totally off topic, but your username reminded me of how much I loved Larry in The Stand!)

Thanks @AmICrazyToEvenBother, yes he's one of my faves!

The world young people are entering now is so different to the one I entered in the early 2000s. The student debt, high rents and wage stagnation has done a real number on them. I feel really sorry for anyone trying to live independently the way I and my peers were able to in our 20s. It's just a different kettle of fish altogether. It's always been normal for young people to rough it a bit and have to scrimp. But having to pay 60% of your take home pay for the privilege of a tiny bedroom in a shared house is really crap.

I don't think she is ridiculous and she makes a point.

Her earning of 150k seems enormous to most people. Once she has paid standard pension, tax and NI, her salary is approx 90k. She isn't entitled to free 30hrs. However, 2 parents working earning equivalent salary between the 2 of them as long as neither go over 100k, are entitled to it. Now for ease of calculation, if both parents earned 75k each to generate the 150k between them, after pension, tax and ni, both would come with nearly 53k each, that gives us a total household income of 106k. So not only are they 16k better off in terms of salaries, they are both also entitled to 30hrs further lowering childcare bill.

Child benefit has different thresholds but again is punishing single parent household where a parent has got a good job. Single parent can earn 60k a year to get full child benefit but a household can earn 120k to get full benefit. So not only is a household better off with 2 salaries, they can get a top up which single parent can't.

System is messed up and should be based on household thresholds to make it fair

Doesn’t this just demonstrate that the dual income household in your example don’t need any government support either? The woman in the example doesn’t need government financial support, she’s likely got at least a grand of free money after all outgoings, including things most would consider extras.

Don’t get me wrong, I’m in favour of universal benefits such as heavily subsidised childcare. In some European countries she’d pay a few hundred pounds a month as the max contribution to state funded childcare. She’d probably also pay more tax than she does in UK though, even though she’s at the highest rate here.

@buffyspikefaith Has got it very wrong actually @LarryUnderwood Clearly you both have no idea of private rents these days, all over the country.

The average rent for a room including bills in Newbury is £700 per month. Of course he can afford, he just doesn’t want to. But it makes a good headline, I suppose.

www.bbc.co.uk/news/articles/cwyv8y68e25o

I am surprised the BBC had space and team members to do this. I thought they were all writing articles about Erik Ten Hag being sacked at Manchester United FC. A decision I disagree with, as I think he was bringing pleasure to millions of football fans.

I haven't got it wrong
My point is we are saying oh yes he can afford it while I am saying "seven fucking hundred quid for a ROOM"

You don't understand a flat or house share. You have a room plus use of the rest of the house.

Why are you angry? £700 for a room in Newbury, not far from London, sounds reasonable to me. If it was £700 including bills in, say, Sunderland, then yes that would be outrageous.

I think the single mum on £150k should drop down to a three day week and then her childcare costs would go down so much (as only three days and she'd have access to funding) she would probably be financially better off and she'd get to see her kids more too!

Yes, I agree. If we made it fair based on certain level of household income. My point was based on the calculation of single parent vs household earning the same, therefore penalising single parent that is already worse off. Yes in her case 150k isn't a struggle, but 100k around London doesn't go far whether people want to believe that or not. As a single parent on decent income I still have to watch my money yet to most I'm high earner. People begrudge anyone with higher income without realising the hours, effort etc but that's another thread. As for tax, UK is one of the highest ones unfortunately 😕

Allana is a bit of a cautionary tale. I wouldn’t want to be single, only have a state pension and a small private pension as income, and still be paying a mortgage in my 70s. Maybe she could get a lodger if she’s got a spare room.

And I do have an idea of private rents and they're extortion

Even in Newbury people still earn min wage
How is someone meant to save for somewhere to rent fully if they never get off min wage? Or they meet someone and split and they're back in a house share again

My friends salary doesn't even cover her rent in Newbury let alone any bills or childcare or food

Allana actually spends quuite a lot of HIS £££ on fetish gear. You can check him out on Twitter. Certainly not for the feint hearted

Could let a room out to that other lad.

As said above, what lender would lend money for a mortgage carrying on until you are 70? Sure Allana could sell the house and downsize to be mortgage free.