Minimum Income Standard 2009
I wrote last year about a really interesting piece of research by the Joseph Rowntree Foundation, which asked people to decide how much someone living in Britain today needs in order to be able to live on.
They have just released the updated version, Minimum Income Standard 2009. There are some really interesting and important findings:
- The minimum cost of living is rising at twice the rate of inflation, making it harder to live on a low income this year than last year.
- A single adult with no children now needs to earn at least £13,900 a year before tax to reach the minimum standard. This is a £500 rise from 2008; nearly half of this extra income is needed for the rising cost of food.
- About one in four people are living below the minimum income standard for Britain, and this is increasing as unemployment rises.
- The minimum cost of living has risen by 5%, contrasting with official inflation figures of 2½% (CPI) and -1% (RPI). A low-paid worker whose earnings were linked to the retail prices index could be 6% worse off this year, relative to the minimum cost of living.
- Job loss can leave you with less than half the income that you actually need to live.
You can read the whole report here
And you can check whether how your income compares to the minimum income standard here