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Original poster

Can you live on £18k a year?

127 replies

peeweechigs · 02/01/2023 14:54

Run a house with two kids? No childcare expenses. Is it possible? Thinking what might happen when separating....

OP posts:
stairgates · 02/01/2023 15:35

With no rent out of that then yes easily. Are you paying debts oit of it?

Athenen0ctua · 02/01/2023 15:35

With no housing costs that will be fine, it's £1350 a month take home.

Babyroobs · 02/01/2023 15:36

peeweechigs · 02/01/2023 14:54

Run a house with two kids? No childcare expenses. Is it possible? Thinking what might happen when separating....

Would you have costs of renting? Even on this wage you are highly likely to get benefits plus child maintenance on top which does not reduce benefits at all. That is as long as you don't have savings over 16k.

Spaghetti201 · 02/01/2023 15:41

That’s loads. I live on £8,000 a year with 2 kids (after rent paid).

redskydelight · 02/01/2023 15:44

With no mortgage or rent, I think that might be doable. unless you're spending a fortune on transport.

Original poster
peeweechigs · 02/01/2023 16:10

No debts and more than £16k in savings so trying so hang on to that for emergencies.

OP posts:
Amboseli · 02/01/2023 16:17

Could you reduce savings to under 16k by putting into JSIPP or JISA?

Original poster
peeweechigs · 02/01/2023 16:18

Amboseli · 02/01/2023 16:17

Could you reduce savings to under 16k by putting into JSIPP or JISA?

How do I do this? It's not accessible then?

OP posts:
Original poster
peeweechigs · 02/01/2023 16:20

Yeah a jsipp wouldn't work as I might need to access the money

OP posts:
Jmaho · 02/01/2023 16:23

I earn about this working part time. If no benefits on top then I'd really struggle even with no rent or mortgage to be honest

My council tax would be £185pm with the 25% discount. My Dec energy bill is over £450! Plus water £70. Car insurance, house insurance, food, petrol. It would be very tight
Have you checked whether you would get any UC what about maintenance from father also?

ILikeBigSaladsAndICannotLie · 02/01/2023 16:37

If you are having to move out due to relationship breakdown, you might need the savings to buy furniture, pay deposit etc? How soon do you anticipate moving out/your partner leaving? Can you arrange to buy things you might need now, in readiness for this to happen?
The point of UC is to support people/families with insufficient ability or resources to support themselves adequately.

Whatafielddayfortheheat · 02/01/2023 16:38

What about child maintenance from the father, OP?

bellac11 · 02/01/2023 16:39

Jmaho · 02/01/2023 16:23

I earn about this working part time. If no benefits on top then I'd really struggle even with no rent or mortgage to be honest

My council tax would be £185pm with the 25% discount. My Dec energy bill is over £450! Plus water £70. Car insurance, house insurance, food, petrol. It would be very tight
Have you checked whether you would get any UC what about maintenance from father also?

Take home is 1305, give or take

The on top of that is child benefit, then on top of that is any maintenance money she might get

She has no housing costs. Even if her bills are 800 a month, that still leaves about 500 a month free (without considering the child benefit and CM)

Whatafielddayfortheheat · 02/01/2023 16:45

@peeweechigs I've just seen you have no mortgage or rent (how??) in which case yes, you should be totally fine

taxguru · 02/01/2023 16:46

peeweechigs · 02/01/2023 15:06

That's pre tax pay. No mortgage or rent. Child benefit for two kids.

If no mortgage nor rent, then I could very easily live on £18k wage!

InTheFutilityRoomEatingBiscuits · 02/01/2023 17:03

Yes, I could, and so could most people. When I had my first DC I was a single parent, working full time bringing home £7.6k per year and paying a mortgage out of it. I know I need to adjust that for inflation but the DC in question is still at school so it’s wasn’t the 1970s.

People might not be able to live where and how they want to, but they could live yes.

Charlize43 · 02/01/2023 17:10

Work out how much all the bills cost.

I don't have any children, am mortgage free, and lived on less than 10K last year. I'm 55 (was made redundant during Covid) and am currently living from my own savings. You could say that I'm semi retired.

Amboseli · 02/01/2023 17:12

You'd have to look into it but I think you could access the money in a JISA. Invest in a cash ISA not stocks and shares.

Wiluli · 02/01/2023 17:29

If you live ina. Very cheap part of the U.K. maybe ? But more surviving than living imo

BernadetteRostankowskiWolowitz · 02/01/2023 17:30

So if you have savings (enough that you cant claim UC) then you dont actually need to "live on 18k a year" do you?

Original poster
peeweechigs · 02/01/2023 17:36

BernadetteRostankowskiWolowitz · 02/01/2023 17:30

So if you have savings (enough that you cant claim UC) then you dont actually need to "live on 18k a year" do you?

Yes I do. That would be my ongoing salary. I don't want to go into my savings for monthly expenses. Otherwise I wouldn't have any savings for emergencies.

OP posts:
namechange3394 · 02/01/2023 17:42

With no mortgage or rent you'd be ok I think. Would you get maintenance?

bellac11 · 02/01/2023 17:43

peeweechigs · 02/01/2023 17:36

Yes I do. That would be my ongoing salary. I don't want to go into my savings for monthly expenses. Otherwise I wouldn't have any savings for emergencies.

Show quote history

You'll be fine OP, you shouldnt need to dip in to them. Have you thought about a notice account where the interest rates are slightly higher, you can get about 3% I think on a 3 month notice account.

Violashift · 02/01/2023 17:46

Looking at my bills

£99 Council tax
£300 average Utilities
£30 water
Car £40
Phones £40
Insurance £100

Leaves £700-800 without CM or CB

Definitely doable its morgage and rent that makes people struggle.

taxpayer1 · 02/01/2023 18:05

According to London Poverty Profile, you will be above the minimum income standard. You need around 300 after housing costs.

Household types Minimum Income Standard - Inner London (AHC), 2020 Minimum Income Standard - Outer London (AHC), 2020 UK poverty line - After Housing Costs, 2020 Destitution, 2020
Single, working-age £276 £253 £141 £70
Couple, working-age £379 £408 £244 £105
Single, pensioner £212 £188 £141 NA
Couple, pensioner £393 £325 £244 NA
Lone parent, one child (aged one) £297 £315 £190 £95
Couple with two children (aged three and seven) £514 £532 £346 £145

www.trustforlondon.org.uk/data/poverty-thresholds/

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