Essential living costs reviewed

[Legal Beagles]

The Joseph Rowntree Foundation publishes its annual update, based on what members of the public think people need to achieve a socially acceptable standard of living.
Since 2008 the Joseph Rowntree Foundation (JRF) has published research published annual updates on a ‘minimum income standard’, based on what members of the public think people need to achieve a socially acceptable standard of living.
Over time, changes in prices alter the cost of a basket of goods and services that represent a minimum standard of living. In addition, changes in social norms will alter the content of that ‘minimum basket’. JRF have published research, ‘A minimum income standard for the UK in 2010’considering both elements, and updated the review of what people think is needed, in changed economic circumstances.
Key points from the research show:

• A single person in the UK needs to earn at least £14,400 a year before tax in 2010, to afford a basic but acceptable standard of living;
• A couple with two children needs £29,200;
• Over the past decade, the rising cost of food, public transport and other essentials means that a minimum budget costs 38% more, despite general inflation at just 23%;
• People have not reduced what they consider as necessities and include things that allow them to participate in society as essentials;
• A computer and home internet connection are now considered essential for all non-pensioner households; and
• With tax allowances and tax credit thresholds not being increased in 2010, people will need to earn substantially more to afford the increased cost of living.

View the full report for further information, ‘A minimum income standard for the UK in 2010’.


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