AIBU to think we need more help with cost of living than a 1% cut to income tax?

[ActualMadness]

lets take a full time minimum wage worker, 9.50x37.5=356.25
357.25x52= 18,525
18,525\12= 1543.75
1543.75\100= £15.43 a month better off.

Most peoples food bill has risen more than this per week and that’s without the extra cost of utilities and petrol. We need some fresh ideas as 1% income tax cut isn’t enough. Other countries have cut fuel duty by over 20% and cap utilities and we are being offered 1% tax cuts.

What about the so called ‘squeezed middle’ (I hate that phrase) My husband and I earn too much to receive any benefits which sounds great. However, we have huge outgoings so we’re not left with a lot after everything’s gone out. We could also do with a break somewhere.

Who then pays for running the country?

We could do what other countries do. Some governments set a standard price for petrol and every filling station has to sell at that price. Malta does it, it was €1.34 a litre there when it was £1.85 here.

Or maybe you need to reduce your outgoings?
Cutting your cloth is an old-fashioned idea, but one that is ever more relevant.

Yes, it's much easier for the 'squeezed middle' to reduce outgoings than for the poor without much to cut back on. I understand mortgage payments may be high, but many other bills can be reduced to suit income.

And ultimately if you can not afford your mortgage and are not in low-cost housing, then either get a lodger or downsize. No one is owed an expensive house in a nice area.

For a 2 child family, once you take into account benefits and the cost of working (commuting, child care, work clothes etc.) there isn't a real difference in quality of life between someone earning minimum wage for 16 hours a week and someone earning around £60k.

Not easy to cut back on childcare when you're working full time.

Not easy to cut back on car leases if you're not near the end of the contract period.

Not easy to quickly get out of Sky/Virgin TV or broadband contracts.

Not easy to quickly get out of phone contracts.

In the short term, there's really not much to cut back on. Yes, you can shop at cheaper shops and buy cheaper foods, yes, you can cut back on having your hair and nails done.

But a lot of the costs are semi-fixed and can't be cut back on in the short term.

This is not true. It might be true if you have two children in nursery, but this is a short time and you maintain your career. When they start school afterschool care is cheaper.

The OP said they had a good wage but high outgoings. IN MN terms this does not translate into £50 month fixed contracts. It usually means a very large mortgage, sometimes private school fees, and usually expensive hobbies and activities for the children.

@antelopevalley I said no such thing, I said that the cut of 1% to income tax would not help minimum wage or low paid workers.

But you'd be utterly stupid to take on a very large mortgage, private school fees, large car payments etc etc and leave yourself with no wriggle room to the extent that you'd struggle badly if fuel and utilities increased by a relatively small amount compared with your income.

You have the means to build yourself a financial cushion. People on significantly less who are genuinely struggling are not going to feel sorry for people who committed all their money to the most expensive option at every turn.

@act sorry I did not mean you. I was referring to the person who talked about being a squeezed middle with large outgoings and a decent wage.

Yes, it's easier to leave room in the budget or savings for a rainy day. Then it's unlikely that all contracts renew at the same time either.

If you already have energy bills down to under £100, basic broadband, sim only mobile contract, and still not much left over then it's much more difficult to absorb any cost of living increase.

I've just run the figures through entitledto.com, 2 children in a four person household. No childcare costs.

16 hours a week @ 9.50 gives £658 per month in income and £2,154 in benefits. Total £2,812 or £40/hour worked

40 hours a week at £60k per year gives £3,605 per month or about £21/hour worked.

My original statement was quality of life, and I do think the extra 24 hours free a week has potential to give a better quality of life than the extra £200 a week.

That benefit amount will also be affected by housing cost/lha. And 2 parents (assuming no disability) will have the job centre on their backs to apply for more hours.
Actually, wouldn't a family only working 16hrs/week at minimum wage be subject to the benefit cap?

"And 2 parents (assuming no disability) will have the job centre on their backs to apply for more hours."

As a benefit payer, I hope so!

Perhaps, rather than looking to government for help, people should face the stark reality that their standard of living might be unsustainable in the current economic climate.

I just worked out what your full time salary would have to be to get a take home rate of £40/hour - £140k pre tax per year.

I feel like a mug.