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  • Minimum Income

    http://www.minimumincomestandard.org/index.htm

    A Minimum Income Standard for Britain: frequently asked questions

    Q: What is meant by a ‘minimum’ income?

    A: It is what members of the public think is enough to provide an adequate standard of living. The full definition is:

    “A minimum standard of living in Britain today includes, but is more than just, food, clothes and shelter. It is about having what you need in order to have the opportunities and choices necessary to participate in society.”


    Q: Is this just what people on low incomes would like to have rather than what they really need?

    A: No, it is about needs, not wants. The groups who came up with this definition were drawn from all walks of life – they were not just people on low incomes. And they were asked to think what someone would need to have to reach an acceptable standard, not what they might like.


    Q: What happened when members of the groups disagreed?

    A: The process used negotiation to try to get everyone to agree, and in the vast majority of cases this was reached. There were obviously some cases where one or two group members were not very happy with a decision or went along reluctantly, but decisions are those of the group as a whole.


    Q: Wouldn’t you get different answers if you had asked another focus group the same questions?

    A: Altogether there were 39 groups. Different groups covered different household types, but for each household type there was a ‘checkback’ group to confirm or amend the decisions of the original group. There was a high level of consistency across groups, and where outstanding issues remained, a further group could be brought in to discuss this further.


    Q: How can everyone in Britain be expected to buy the same set of goods and services? We’re all different.

    A: The budgets created do not imply that everyone will choose to spend their money on these things. Instead they show that someone who wanted this particular set of goods and services should be able to afford them. The things in the budget represent what members of the public said were a minimum standard of living. With the same income, there will be other ways of reaching a similar standard. That’s why the study is translating this into what income everyone needs, not saying what they must spend their money on.


    Q: But how can you have a minimum income for Britain when things cost twice as much in some parts of the country as another?

    A: It is true that housing costs far more in some parts of Britain than elsewhere, and that is why on the ‘Minimum Income Calculator’ allowing a household to calculate its minimum income, you can adjust the housing costs. For other costs, the differences are lower than sometimes thought. A recent government survey showed that regional variations in average prices are mainly less than 10%, and for basic goods bought at national chain stores, on which the pricing for this project was based, they tend to be lower than that. Nevertheless, some people may face abnormally high costs because of where they live or lack of accessibility to shops, and these people may require more. The minimum income standard is something that people felt nobody in Britain should fall below, but it will not be enough for everybody.


    Q: Is the minimum income standard a new poverty line?

    A: There are many ways of defining poverty, and it is not the intention to say that this is the correct threshold. However, the minimum income standard serves as a useful benchmark, since people who live below it are unable to have and do the things that the public thinks are adequate to participate in society. Perhaps the most significant finding is that almost everybody defined as being poverty on the existing measure – below 60% median income – is also below the minimum income standard. So the research helps show that people living below this poverty line are indeed missing out.


    Q: How close do benefits get people to minimum incomes?

    A: For pensioners who take up the pension credit, very close: the minimum income level in the credit is similar to the minimum income standard. However, many do not take it up. The basic retirement pension falls well short.
    Most other benefits are also well short of minimum income standards. For a single out-of-work adult without children, benefits give less than half of the standard. Benefits in such families have not changed for a generation, while general living standards have shot up. State help for families with children has gone up in recent years, but on benefits you are still likely to get less than two-thirds of what you need to reach this standard.

    Q: What does the minimum income standard tell us about the adequacy of the National Minimum Wage?

    A: It depends on how many people are working in the household, how many hours they work and whether they have dependants. However, people who work full-time on the minimum wage are generally below the minimum income standard. Exceptions include some people with very low housing costs and lone parents working full time without childcare costs.

  • #2
    Re: Minimum Income

    http://www.minimumincomestandard.org/full_budget_sheets.htm

    Full budget sheets

    Below are the detailed budget spreadsheets for different household types, on which the household budgets calculated by the Minimum Income Calculator are based. There are 13 spreadsheets:
    1. Single working age female

    2. Single working age male

    3. Combined budget for partnered working age female and male without children

    4. Combined budget for couple with toddler

    5. Combined budget for couple with pre-school child and primary school child

    6. Combined budget for couple with pre-school, primary school and secondary school aged children

    7. Combined budget for couple with toddler, pre-school, primary school and secondary school aged children

    8. Combined budget for lone parent with toddler

    9. Combined budget for lone parent with pre-school child and primary school child

    10. Combined budget for lone parent with pre-school, primary school and secondary school aged children

    11. Single female pensioner

    12. Single male pensioner

    13. Combined budget for partnered female and male pensioner

    Please note: The MIS budgets for single working age people and single pensioners are based on the average for both males and females in that category, so the single working age adult budget is the average of 'Single working age female'' and 'Single working age male' and the single pensioner budget is the average of 'Single female pensioner' and 'Single male pensioner'
    Last edited by Gerry; 22 February 2011, 22:51.

    Comment


    • #3
      Re: Minimum Income

      Thanks for these Gerry. I'm well below the minimum at present.
      Let your smile change the world but don't let the world change your smile


      I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

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      • #4
        Re: Minimum Income

        Originally posted by pixiechick View Post
        Thanks for these Gerry. I'm well below the minimum at present.
        Glad it helped you pixie, Got loads more info to post.

        Gerry x x

        Comment


        • #5
          Re: Minimum Income

          As they say in 1st post: It is true that housing costs far more in some parts of Britain than elsewhere.
          But it still looks well below the real cost to me:
          I've checked "couple + two" and they have 69.40 rent per week which is 300 per month.
          Assuming 2+2 live in 2 bedroom flat/house, 300 p/m is very very cheap.
          Is this council flat rent?

          On the other side, they "allow" 90.74 for food which is in my opinion excessive for 2+2 family (unless you buy everything in corner shops, which most of my "noble" neighbours on benefits do).
          And 50.25 for entertainment? 90.08 alltogether for social and cultural participation? Unrealistic.
          Is it chavs budget - a lot of food, 8 cans of beer, a lot of "social participation" plus new hoody every week (29.26 for clothing) and 2 bus-passes (can't make anything more from 35).
          Last edited by jadex; 24 February 2011, 05:11.

          Comment


          • #6
            Re: Minimum Income

            Originally posted by jadex View Post
            As they say in 1st post: It is true that housing costs far more in some parts of Britain than elsewhere.
            But it still looks well below the real cost to me:
            I've checked "couple + two" and they have 69.40 rent per week which is 300 per month.
            Assuming 2+2 live in 2 bedroom flat/house, 300 p/m is very very cheap.
            Is this council flat rent?

            On the other side, they "allow" 90.74 for food which is in my opinion excessive for 2+2 family (unless you buy everything in corner shops, which most of my "noble" neighbours on benefits do).
            And 50.25 for entertainment? 90.08 alltogether for social and cultural participation? Unrealistic.
            Is it chavs budget - a lot of food, 8 cans of beer, a lot of "social participation" plus new hoody every week (29.26 for clothing) and 2 bus-passes (can't make anything more from 35).
            Hi jadex,

            Yeah the Rent is for 3 bedroom council house.

            The entertainment costs include yearly budget for tv licence, annual holidays, birthday & xmas gifts, school trips, children clubs/sports/swimming
            (it probably best to check the breakdown of costs to see what's applicable to you).

            Do you not think a chavs budget would have more than £6.00 for Alcohol?

            Gerry

            Comment


            • #7
              Re: Minimum Income

              thanks Gerry

              I just wish my Council Tax was as cheap as that one lol

              £80 p/mth Band D (1 Bedroom Apartment) that also inc was the 25% Single Adult No Child lol
              I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

              If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

              Comment


              • #8
                Re: Minimum Income

                Gerry a fantastic thread honey, well done and a great help to all, thank you.

                Comment


                • #9
                  Re: Minimum Income

                  Originally posted by di30 View Post
                  Gerry a fantastic thread honey, well done and a great help to all, thank you.

                  Your welcome Scorpio & Scallywag There’s loads of info I think its just a wee bit complex though so I’ll try to do a simpler spreadsheet.

                  Gerry x x
                  Last edited by Gerry; 1 March 2011, 02:06.

                  Comment


                  • #10
                    Re: Minimum Income

                    Is it worth including a screen print of your results when contacting creditors and arranging payments etc alongside a budget sheet?

                    Comment


                    • #11
                      Re: Minimum Income

                      Good idea....
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                      • #12
                        Re: Minimum Income

                        Why are there no budgets sheets for the disabled as there cost of living is higher than the average citizens due to the extra costs of adaptation.

                        Did they not think of that?

                        Comment


                        • #13
                          Re: Minimum Income

                          Originally posted by pompeyfaith View Post
                          Why are there no budgets sheets for the disabled as there cost of living is higher than the average citizens due to the extra costs of adaptation.

                          Did they not think of that?
                          I may create one for online use via our website
                          I'm the forum administrator and I look after the theme & features, our volunteers & users and also look after any complaints or Data Protection queries that pass through the forum or main website. I am extremely busy so if you do contact me or need a reply to a forum post then use the email or PM features offered because I do miss things and get tied up for days at a time!

                          If you spot any spammers, AE's, abusive or libellous posts or anything else that just doesn't feel right then please report them to me as soon as you spot them at: webmaster@all-about-debt.co.uk

                          Comment


                          • #14
                            Re: Minimum Income

                            However guys and girls,

                            It should show us all what is really thought about disabled people by the government back benches when one of them says that disabled people should be paid less than "normal" people this week. That to me shows a covert fascist ideology in the government.

                            Are we really the trash they make us out to be? They should remember that every one of us would like our health back so that we can get on with our lives normally and out of pain with the breath to walk to the shops etc. Not to have to take drugs which give us dreadful side effects just to stay alive. Or is that cretin in the House saying we should all be put down. One day he might be disabled.

                            Makes me so angry.

                            regards
                            Garlok

                            Comment


                            • #15
                              Re: Minimum Income

                              Garlok,

                              Thank you for that glad I am not the only one to feel the same, If that where to happen that would not be the end of it and once on a lower than MW try getting a pay increase once you have proved your worth.

                              How many able bodied citizens on the MW has had an increase taking them above that standard...... not many I bet.

                              Indeed it is open to abuse.

                              When will MP's get real as life and living is not as rosy as they think.

                              Cameron and his bunch of merry men have made some nasty comments in the past without any thought the latest being that absent fathers are just as bad as drink drivers.

                              Think we have an apology coming next week on that one.

                              Regards

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