To think people on middle incomes are forgotten about?

[Squeezedout]

I am so upset tonight and just need to vent. I have always worked, as has my partner. We have 2 children who we could provide for until my industry pretty much collapsed and I had to find a less well paid job.

The cost of childcare and rent (south east) is absolutely crazy and I can’t keep up. I put in an application for universal credit that said we’d be entitled to a few hundred a month so have jumped through every single hoop, taken unpaid days off work to attend a job centre (the irony!)

Only to find out now (6 weeks after the initial claim) that we are entitled to roughly £4.50 a month.

On paper maybe we have decent salaries, combined with the rent and childcare we can’t even break even each month. I know we are not alone.

It seems in this country that if you are the poorest of society, you are helped (in terms of council properties with decent rent, council tax help, 2 year funding and everyday benefits as well as lots of media attention to the problem) to ensure you have enough to live on. If you’re the richest in society, you obviously don’t need help but the squeezed middle are just completely forgotten about.

I am NOT benefit bashing at all but It really doesn’t pay to work sometimes. I’ve calculated how much better off I’d be as a single mum not working in a council house and tbh I cannot keep taking out loans and am starting to think this is the only option to keep my kids fed.

AIBU to think the ‘squeezed middle’ are completely forgotten about in this country? And that it is fucked up that I can’t feed my kids on an average wage?

I completely agree.

My parents have always fell into this bracket and now we do too.

We don’t qualify for any help but are wages aren’t up there and every month is a struggle to break even.

Let's all move to Ireland

I'll come

I get where your coming from also earn £45k between us . I was just going through my bank account and a bit fed up not much left after all my direct debits. I'm careful with what I spend but because I had a extension On my house a couple of years ago I've a bigger mortgage and loan and I know I'm lucky to own . I'm also saving for a holiday next year , again I know I'm lucky but it's the first family holiday abroad in years .
As I've said I know many people are worse off but it does annoy me a bit that hardly anything to treat myself when I get paid .
I never have take aways , always take my lunch to work and going for a meal is a special occasion.
I'm not in a serious debt though apart from my mortgage and home improvement loan I won't use my credit card unless I pay it off .
I wouldn't complain but sometimes you do have moments when you just think .

.... in terms of council properties with decent rent, council tax help

Sorry NRTT, agree re council housing, but so much more housing is now private rental and housing benefit (called Local Housing Allowance) since Condem govt changes no longer covers the full rent in SE and London, with even a shortfall outside these areas.

From Crisis:

“Research carried out by Crisis and the Chartered Institute of Housing has shown that underinvestment in Local Housing Allowance rates means that in 92 per cent of areas in Great Britain, just one-fifth or less of the private rented sector is affordable within the rates to either single people, couples, or small families. By nation, this is 97 per cent of areas in England, 82 per cent in Wales, and 67 per cent in Scotland.”
www.crisis.org.uk/ending-homelessness/homelessness-knowledge-hub/benefits-and-employment/cover-the-cost-how-gaps-in-local-housing-allowance-are-impacting-homelessness/

Ps agree there is the squeezed middle too

Finally, Crisis’ Cover the Cost campaign, see link below, where Crisis is calling on the UK Government to restore Local Housing Allowance rates to cover the cost of rent and stop more people becoming homeless.

Those solely on benefits, low working income plus some benefit help and squeezed middle all suffering due to Condem and now Conservatives policies combined with the inflated house price market.

www.crisis.org.uk/media/240378/cover_the_cost_briefing.pdf

@FancyACarrot @ssd
high rental rates here...everywhere. House buying is much the same but takes longer but also no council tax or water rates.

Pay €50/60 to see the doctor, free for kids up to age 6. Low earners get a medical card which makes gp visits free. Most people who don’t have a medical card have health insurance (sometimes through work)

What jobs do you do OP? I can see why you don't want to move given that your family is in the south east, but you've not said enough to ascertain whether it'd be doable or not.

Funny how so many other countries (Scandi mainly) have good worklife balance, good childcare, good housing systems. It is possible to have it all, it's the system that is fucked

People in the UK wouldn't be prepared to vote for a party that proposed the necessary hikes to fund all that.

I read recently that income tax rates in Sweden either were, or are likely to be, above 60% soon.

You do know very few people actually get a council house right? Most of those single parents on universal credit live in substandard private rentals or shoddy temporary bnb type accommodation, and pay enough for it that they hit the benefit cap, whilst dropping by the food bank.

HTH

You do know very few people actually get a council house right? Most of those single parents on universal credit live in substandard private rentals or shoddy temporary bnb type accommodation, and pay enough for it that they hit the benefit cap, whilst dropping by the food bank.

Agree @Chloe9, not much council housing available now . See my posts above.

To add, the changes and cuts in housing benefit rates since 2011 by first the Condem and then Conservative govt is explained here:

“The housing benefit Local Housing Allowance, which is part of Universal Credit, was created to help people pay their rent until they get back on their feet.

When introduced, Local Housing Allowance covered 50% of local rents. In 2011 this was reduced to 30%. In 2012, the link between the rates and local rents was broken * so they increasingly fell short of covering the bottom 30% of rents. Local Housing Allowance rates were then completely frozen for four years from April 2016.”

• Rates were frozen in April 2012, and subsequently increased in line with CPI inflation from April 2013, rather than rent increases, then as said above local Housing Allowance rates were then completely frozen for four years from April 2016.”

www.crisis.org.uk/media/240378/cover_the_cost_briefing.pdf

I totally agree. We both work and barely make it through the end of the week. Credit card is getting up there and we don’t go on holidays like most other families seem to do.

I find the cost of basic living (food, fuel, council tax) just keeps going up and low-middle incomes are not increasing to keep up. I’m happy to be earning a fraction about the limit for benefits (I do claim CB) but our disposal income is shrinking each year and there is now almost nothing else to cut back on.

Thank the Tories.

If brexit happens it will all be much, much worse. I read today basic tax rate would have to rise 9% to cover the cost of no deal.

It’s ridiculously hard to live in an expensive area and try to fund everything. The only option for us was to move and it was so hard. We moved from all our friends with a one year old baby, I left my job and it was totally shit and lonely. Now I’ve got a part time minimum wage job, as a family we earn quite a lot less than you OP but still only entitled to £4.50 UC if we claimed.

But our living costs are manageable, our tiny terrace house (the best we could afford was still the cheapest in the SEast seaside town) is looking ok and we’re making friends. I couldn’t cope with the cost if we’d stayed in the city and worked to fund childcare and rent.

Still we haven’t been to the dentist for years, I’ve lost my career until I retrain, we have no family here at all. Oh and definitely sticking with one DC. I have no idea what the answer is.

We’re on about the same as the OP, but feel ok for money. Mainly down to only one child, one car, a tiny house and living in a cheap part of the UK. The size of the mortgage affects things a lot. We don’t have much at all in savings at the moment though (having just had a new kitchen).

@shemakesmewaitonabedofnails in response to your question to me, you're being disingenuous. As a CTA I presume you're aware that the very wealthy can structure assets and income in particular ways to minimise their tax liabilities. If you disagree with that, I assume you work only on compliance and filling in tax returns? Or do you provide advice and planning? Because of course there would be no point in tax advice and planning if there weren't ways to minimise your tax bill.

@JoJoSM2 to try to answer your question, your take on it seems to be focusing on income from employment, very wealthy people have other sources of income too so it's over simplistic to think only in terms of PAYE which I think is what you're talking about.

I read today basic tax rate would have to rise 9% to cover the cost of no deal.

You mean like the way they said there'd be an emergency budget and immediate tax rises if the referendum was won by Leave???