How are people surviving

[Truthseeker456]

I don't get it. One income and I am on a what was a good wage 53,000. My mortgage is likely to double next year I have nursery fees and 3000 take home and always in my overdraft. How are people surviving, we don't hear anything in the media. Rents are also though the roof

Debts do not literally die with you. When you die your assets are added up in cluding house, valuables, savings and then your ebts like mortgage, equity release (common for older people to take this debt out) etc etc are taken off and your heirs/children then get what is left.

How am I being bitter? Most people on here are struggling or have you not realised this?

Because you can claim CB and sit on the lower tax band (and possibly get other help) Those above £50k cannot. The issue is that ‘higher’ earners pay more tax and get no govt help. So if bills suddenly increase across the board, they’re f@cked. This is the situation now. People on lower incomes completely forget that they are topped up. It makes a difference.

Yes those just below the 40% tax band get cb, but that is it, no other government help. Please tell me I’m wrong as I am in that bracket.

It depends. You could get help with childcare costs, for example.

They might get other government help if their housing and/or childcare costs are high enough. Actually so do a few thousand people earning over 50k, even though they're higher rate taxpayers.

For those still not able to make sense of it all; at one point - as a professional on a £25k part time (22 h) salary - I would have been better off quitting my job and taking a minimum wage job working the same number of weekly hours.

I had to actually work approx 30 hours although I was only paid for 22 of them.

If I worked 30h on NMW, I’d have been entitled to UC which topped my wages up to more than my “professional” salary(childcare costs, Scottish child payment, etc, plus I wouldn’t need to pay back my student loan)

Ive recently increased my hours and my salary is now £48k, and I’m only marginally better off than when my salary was £25k (because I crossed the student loan threshold, I am now in the 42% tax bracket, and I lose all help with childcare costs)

Its mental. Absolutely mental.

We are very careful with money and house we rent isn't mortgaged so we don't pay as much as current market average. We do realise though it's not going to last forever, especially that we have baby on the way so my husband invests a lot of money and time in his education. This should pay off in the future. I can't imagine living on our current salaries in 5-10 years. Also, the fact that we rent, not own the house speaks for itself. We don't have any family help with deposit etc., so weren't able to buy yet which decreases our net value a lot.

It is, and with the cost of living spiralling it'll be no surprise if people vote with their feet. They might not be able to afford to do anything else!

We're 50s, no children, Both of us earned decently money and also have got BTL properly that cover the bills and mortgage,so we are OK have got some savings for the raining day though.

The solution to this is to live as though you are a minimum wage and put the difference in to your pension, and then you’ll be entitled to all of the benefits under the sun and the additional assistance, without actually losing the physical money.

Why? Pip is an in work benefit.

Yep, I’ve upped my pension contribution! Still don’t get any help financially but it’s brought down the amount of my wage that I pay 42% tax on! I also have everything that can be deducted from my wages deducted at source (union fees, professional memberships, council tax, and so on)

If I work one day less per week I’ll be about £100 per month worse off salary wise; but then I’ll save £200/month on childcare. And that is on a “professional” wage.

My partner earns around the tax threshold so barely pays any tax. IMO income tax should be pooled per household; rather than individual. It disproportionately impacts families with young children who have one parent reduce hours for childcare purposes.

Lady depends - graduates may be paying 9% tax in a higher amount than someone who might be only just over the repayment ceiling for student loan.
Secondly at some point you lose all but 15 free hours for I think it's 4 year olds for childcare yet your childcare bill full time might be £20k per baby/toddler. Lower earners might get 30 hours. You also lose the £2k per child set against child care coss once over a certain figure. Finally eventually you lose the single person tax allowance of £12,750 entirely and every single penny you earn is taxed.

All kinds of things have been done to these " higher" earners in recent years in sleights of hand as the state has increased taxes more and more and more

Crazy what's required these days. Everything so expensive and it's going to stay like this unfortunately :(

You have a lot more that £150 disposable the £200 kids hobbies are disposable the subscription are disposable you are spending £70 more than necessary on mobiles and £300 more than necessary on food. So your £150 disposable is really £720 which is a lot.

I still miss Kellogg's chocolate cornflakes , you do realise chikdren can have treats at any time of day even shock horror at breakfast time?

You could tell the bank that when you get warning letters, I doubt they will listen.

Other than CB and the 25% single adult CT discount I receive no further help. And I don't even benefit from CB as my ex keeps it all (long story).

Paying higher tax still means having significantly more money than those on a lower income; you don't pay a higher amount of tax on the lot, only the bit that crosses the threshold. So, no, that's not it.

But I do realise my outgoings are low. I chose to make them so, in case I ever fell on hard times, so rather than live in a 3 bed semi in a nice area I live in a 3 bed mid-terrace in a cheap area. My bank stress tested my mortgage to 11% early last year, before everything went crazy, and I assume they need to do that when you rely on a single income to pay all the bills.

Like I said, it all probably comes down to location. In London and the Fringe, I can see how 80k might still be tight. In the North? Not so much.

I understand your frustration but it definitely isn't like how u put it

What do you mean? I’m going to have to find another £600pm for my mortgage. I’ve two in nursery. Bills are sky high. I get no help. But a single parent under £50k should and will get help. With childcare. With rent. With child benefit. I’m not bashing them. I’m saying that for some of us it’s become very hard very swiftly and there’s no support.

Well trust and beleive it's very difficult, it's not enough to cover bills and food and travel I get £608.36 a month to take home and 24 pounds a week, I have to pay £78 pounds a month lunch for nursery fees, £176.74 a month electric (no central heating here) and other bills come to around 100 pounds plus food around 100 month, the there is other expenses like travel and things like that which is probably another 100

Child benefit is £150 for two children. It doesn’t go far when your mortgage and utilities shoot up as they have recently.

I have no issues paying my mortgage so your post makes zero sense.