In 2008 the Joseph Rowntree Foundation published its first ‘minimum standard for Britain’ surveying members of the public to find out what income they thought was needed to achieve a socially acceptable standard of living. This survey has now been updated taking into account the rising rate of unemployment and the economic crisis with some fascinating results.
- 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 according to the minimum income standard for Britain.
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