I'm on a low income and claim tax credits so I'm breathing a huge sigh of relief at this!
Out of interest, I've just worked out my maximum earnings potential in the job I'm in - £13,939 per year before tax (based on 40hrs at £6.70ph). My basic living costs for the year are as follows:
Rent £6000 (don't pay this anymore but did until a year ago when my dad bought me a house. Have included it as not many people are lucky enough not to have this)
Gas/electric/water/tv licence £1560
Council tax £780
Childcare £4630 (based on before and after school care for 39 weeks, 5 weeks holiday that I can take, then the remaining 8 weeks with a full time childminder)
Insurances £600 (house/car/life)
Phone £420
Car running costs £1145 (my car costs £30 a year to tax and I put £15 a week in diesel, so that's being economical!)
All of that totals £14715, leaving a deficit of £779 per year. And I haven't included food, toiletries etc in that! I live fairly frugally and couldn't make ends meet on 40 hours at NMW without tax credits help. I fail to see how that makes me the great unwashed, or whatever phrase was used early in this thread!
Yes I could get a better paid job. Because it's that easy! Why didn't I think of that??! Maybe get rid of the phone? Lose the car? Then I'd have bus fares to pay. I could eBay the child! Now there's a money saving idea! Unless a better paying, full time, permanent job (with no undociable hours as I'm a single parent) comes along, I'm basically screwed, as are many in the same situation.