Chancellor on "middle income" struggling too.

Ridcully82 · 2022-08-27T11:18:13+00:00

I don't know if I need to caveat this with the obvious (lower the income , the more you'll suffer this year/ often less options to easily increase income), but in light of the chancellor's statement this morning about senior nurses on £45k (who should be on more,btw) struggling,I was just thinking: a £45k cut off for household income is going to leave a lot of people out who need that. Our gross is above that,but our net below,and doing the figures our winter months payments will be over 15% of our net. We will cope by cutting out pretty much everything bar utter essentials: am I alone in thinking this will be too big a section of society to ignore?

Thisismynamenow · 27/08/2022 14:38

I'm panicking about this alot. We pull £65k and absolutely won't be able to afford October's increase let alone January onwards.

I've just seen on itv it's going to hit £7.7k in early next year.

A mixture of maternity leave then childcare costs, and repayment of debt (vets bills and hgv licence on credit card) we have no spare money. We live in an ex council 3 bed semi and are incredibly frugal with fuel. So it's not like we are flashing cash everywhere.

ShesNotTheMessiah · 27/08/2022 14:52

The problem with them leaking little titbits like this is that the vagueness causes so much stress. Not knowing what you're facing. It's cruel.

They will have known this cap increase was coming and should have been prepared for it. If they hadn't insisted on dragging out a leadership farce so it lasts longer than a general election does, it would have been done by now.

Original poster

Ridcully82 · 27/08/2022 15:25

Thisismynamenow we're also careful on consumption too,but these figures seem to overwhelm any last pips we could squeeze out of usage.

ShesNotTheMessiah couldn't agree more,they've known what's coming,and this teasing of help to come is,to be honest, insulting and undignified.

OP posts:

Asdf12345 · 27/08/2022 15:27

Work out what it will cost you. Not some mystical typical household but
your household.

If as you say you are extremely frugal already it won’t cost near £7k.

Thisismynamenow · 27/08/2022 15:59

Asdf12345 · 27/08/2022 15:27

Work out what it will cost you. Not some mystical typical household but
your household.

If as you say you are extremely frugal already it won’t cost near £7k.

I track my usage every month. If we go off last year (everything off when not used, tumble dryer for towels only in winter, heating on at 16° for 3 hours per day). There's nothing really left to cut in terms of usage.

Our usage for gas and electric in our winter bill was £150 under the 'average cap'. Scaling it up for October cap it will be around the £3240, their expecting January to be AT LEAST another 50%, so £4800. I'm sure they said it will peak at £7.7k in April, so I'll probably be at £7k judging by fag packet scale up calculations.

I religiously track and Monitor, I know my usage well and only use whats necessary, particularly now and we still aren't far behind the quoted cap price.

EllenWaiteourkid · 27/08/2022 16:03

People rioted over the poll tax, I just don't understand why people are being so restrained, not advocating it obviously but we all seem to be sleep walking into it.

ReeseWitherfork · 27/08/2022 16:07

Its easy to forget that a lot of people plough a lot of their income into their house (mortgages, council tax, insurances, utilities) and so even if you’re earning £100k between you, if it’s already accounted for then there’s still no wiggle room. Selling a house isn’t a click of the finger solution even when we’re not in a recession.

OddBoots · 27/08/2022 16:08

EllenWaiteourkid · 27/08/2022 16:03

People rioted over the poll tax, I just don't understand why people are being so restrained, not advocating it obviously but we all seem to be sleep walking into it.

Potentially people are waiting to see what the new PM offers before deciding what to do, many still think there will have to be a significant support package offered and can't believe the government will leave is all in trouble like this.

MintJulia · 27/08/2022 16:08

My net income is about36k.

Single mum with mortgage, I'm genuinely trying to build a large enough store of logs that I can put my heating at about 10 degrees and use the log burner to provide heat above that.

It's ridiculous that I'm spending my summer collecting wood but I'm one of the lucky ones. 😮 Living rurally is suddenly a benefit. I'm going to offer my elderly neighbour to eat with us so she doesn't need to cook.

NoodleSnow · 27/08/2022 16:17

ReeseWitherfork · 27/08/2022 16:07

Its easy to forget that a lot of people plough a lot of their income into their house (mortgages, council tax, insurances, utilities) and so even if you’re earning £100k between you, if it’s already accounted for then there’s still no wiggle room. Selling a house isn’t a click of the finger solution even when we’re not in a recession.

Yes, some people will be much more vulnerable than others even on the same income. If you’re committed to a large mortgage on a short term fix, you’re particularly at risk because the higher fuel bills will affect affordability calculations, so when the fixed mortgage runs out you could end up forced onto variable rates.

pinkroseapp · 27/08/2022 16:41

Household income on £40k, two people working full time on a below average salary with 2 teenagers in the house. We are not eligible for any benefits, I can’t see how are we able to afford such price. 😩😩

Anono2022 · 27/08/2022 18:03

I work in a school. Full time/term time which fits around my SN child. My income is £16,000 annually and am entitled to a small amount of TC due to my income and being a lone parent. UC is not an option for me due to me having a mortgage. We are suffering already. In light of recent announcements I am terrified. Can't avoid our life now. I'm miserable as its literally basics. I HATE paying for the necessities now as each time there is a further increase. I have no life already. How the hell can I cut back on things that aren't there to cut back. Even with TC top up the household only brings in £20k a year so im way below £45k. I'm so upset about it all

dolphinsarentcommon · 27/08/2022 18:09

ReeseWitherfork · 27/08/2022 16:07

Its easy to forget that a lot of people plough a lot of their income into their house (mortgages, council tax, insurances, utilities) and so even if you’re earning £100k between you, if it’s already accounted for then there’s still no wiggle room. Selling a house isn’t a click of the finger solution even when we’re not in a recession.

This is exactly my thoughts. If your income is pretty much accounted for it doesn't matter how much you're earning. If there's no spare, there's no spare.

OneFrenchEgg · 27/08/2022 18:16

ReeseWitherfork
Its easy to forget that a lot of people plough a lot of their income into their house (mortgages, council tax, insurances, utilities) and so even if you’re earning £100k between you, if it’s already accounted for then there’s still no wiggle room. Selling a house isn’t a click of the finger solution even when we’re not in a recession.

This is exactly my thoughts. If your income is pretty much accounted for it doesn't matter how much you're earning. If there's no spare, there's no spare.

I agree with these posters ^^
Already a lot in tax, no personal allowance (for some higher earners, huge outgoings, no child benefit, having to fund uni for children or daycare etc). This is basic life stuff that everyone needs help with, not some farcical cut off like the crappy child benefit framework.

OneFrenchEgg · 27/08/2022 18:16

^^ this is not me btw I earn a very low salary in public services

Lougle · 27/08/2022 18:40

Anono2022 · 27/08/2022 18:03

I work in a school. Full time/term time which fits around my SN child. My income is £16,000 annually and am entitled to a small amount of TC due to my income and being a lone parent. UC is not an option for me due to me having a mortgage. We are suffering already. In light of recent announcements I am terrified. Can't avoid our life now. I'm miserable as its literally basics. I HATE paying for the necessities now as each time there is a further increase. I have no life already. How the hell can I cut back on things that aren't there to cut back. Even with TC top up the household only brings in £20k a year so im way below £45k. I'm so upset about it all

Have you double checked the UC Vs TC situation? We have children with SN and will be significantly better off on Universal Credit than Tax Credits.

Anono2022 · 27/08/2022 19:06

His on the pathway to diagnosis so not officially diagnosed. A few have already been mentioned but just waiting now. UC has never been good for me. I'm told because I have a mortgage. UC is significantly less than my TC on the same details which is why I cant move myself over

Lougle · 27/08/2022 19:14

Anono2022 · 27/08/2022 19:06

His on the pathway to diagnosis so not officially diagnosed. A few have already been mentioned but just waiting now. UC has never been good for me. I'm told because I have a mortgage. UC is significantly less than my TC on the same details which is why I cant move myself over

Ok, but have you applied for DLA for him? You don't need a diagnosis, just evidence of his needs.

Anono2022 · 27/08/2022 20:41

@Lougle yes he got declined because school denied care needs in school and current supports they in place for him. I've done and MR proving the incorrect information they were provided