Mr & Mrs Average In Ni

[Shotoflight]

British families need £25,000 just to survive

The average UK family now needs to bring home £24,800 a year just to break even, an increase of £130 compared to last year's cost of living.

http://www.telegraph.co.uk/finance/personalfinance/consumertips/household-bills/9680091/British-families-need-25000-just-to-survive.html

These latest figures show the cost of living has risen yet again, and the majority of people in the UK are still struggling to keep their heads above water. The figure of £24,801.51 was calculated using mortgage or rent payments, utilities, insurance, food shopping and motoring, plus the cost of dressing a family, owning a mobile phone and landline, travelling to and from work and maintaining a property.

However, this total sum amount does not include any luxuries whatsoever, so those families looking to treat themselves will have to dig deeper to meet the cost of treats such as takeaways, restaurant meals, nights out, weekends away and holidays.

Even though the study - which analysed the spending habits of 2,000 UK parents with at least two children living with them - found that some general bills and expenses had decreased, there was an overall increase of £129.35 in the outgoings of the average family compared to 2011.

"Don't forget that £24,801.51 is the figure UK families need to bring home so, once income tax and national insurance has been taken into account, the basic rate taxpayer would actually have to earn well over £30,000."

Unfortunately, despite inflation now nearer to the Government's 2pc target, many families are still in exactly the same position as a year ago, with almost 60pc saying they have less disposable income than last year.

"Given this it is maybe not surprising, but nevertheless still worrying, that a third of respondents say they do not have a savings account and, of those that do, only one in five are managing to save more each month than last year.

"It seems that there is no end in sight for many families, with six out of 10 believing they'll end up paying out even more money on bills next year and with only one in 10 expecting to be less cash strapped in 2013 than in 2012."

[Shotoflight]

Families in misery over Christmas debt

While Christmas may be a time of joy for many, thousands of families in Northern Ireland are in despair over how to pay the bills as well as buying gifts.

http://www.u.tv/News/Families-in-misery-over-Christmas-debt/a0d513fa-397a-41aa-8f66-472a9f2b23a7

The countdown to the festive season is well underway - but with the recession biting hard, there is little to be cheerful about for some.

Charities are reporting a huge rise in the number of families who have working parents coming to them for help. One organisation, Christians Against Poverty, has revealed that half of the people who have approached them are suicidal.

Two years ago Rebecca McConkey - who has two children, seven-year-old old Ruby and two-year-old Ollie - found herself £10,000 in debt.

Despite working as a nurse she said she struggles every day to make ends meet.

"At the minute it's quite difficult," Rebecca told UTV.

It's very shameful and it's difficult to pick up the phone and ask for help, as much as I know the help is there but it's still quite degrading to get to the point where you have to ask for that - but sometimes you have to put your pride to one side

Rebecca McConkey

"Sometimes you get a bad week, like this week has been, where something goes wrong with the house and you find yourself with no oil, no heat and no spare cash to even get food.

"That's where it can be quite hard, especially when you know in the near future Christmas is coming and you've got no money to spend.

"It's come to that on a couple of occasions where you open the fridge and think 'okay, I need something for pack lunch' and you maybe have enough money to get the ham and the fruit for a pack lunch, but you don't have enough money to get the dinner tonight.

"That's what is coming down to this week."

Such is the level of debt in Northern Ireland, Christians Against Poverty has seen a 24% increase in the number of people they are trying to help, compared to last year.

Chris Cupples from the group said many of them are deeply distressed.

"Worryingly we did a survey earlier in the year and asked clients what it felt like to be in debt," Mr Cupples told UTV.

"We found that in Northern Ireland one in two had either attempted or considered suicide because of debt - so you can see it affects people's mental health and caused depression and illness, and there's always a way out of it but that pressure can build up and cause illness."

The pressure on parents to provide the same toys as their children's friends leads to growing concern that, come January, there will be credit card bills to pay.

Rebecca said she hopes she can give her children a memorable Christmas without the festive season coming to end with even more debt to clear.

"It's very scary when you reach the point when you can't pay anymore and you've got people calling from eight in the morning to eight at night demanding money and letters coming through your door every day," she continued.

"It can get quite depressing at times, obviously you want to do the best for your children.

"But in the long run they won't remember in monetary terms what they got for Christmas when they were seven - but maybe they will remember what mummy did with them on Christmas Day when they were seven."

[RaddaBoutYeeee]

"found herself £10,000 in debt."

how do you find yourself in debt? surely everyone knows when taking on loans, credit cards etc that they need to be paid back at some point? i cant afford a house right now so i rent as i can afford to do so. when i have a suitable deposit built up i'll get a mortgage - but i'll know i have to pay it back. hope i dont sound like a grinch but this sort of thing winds me up

[2buyornot2buy]

Dual income household are the new norm? What does it matter when you lose one of those incomes to child care?

http://www.bbc.co.uk/news/uk-northern-ireland-20492361

NI childcare costs top £16,000 for two-child family

The average family with two children in Northern Ireland spends more than £16,000 a year on childcare.

The figure is contained in a report from the Employers For Childcare Charitable Group which surveyed almost 4,000 parents in Northern Ireland.

The charity is calling on the Stormont Executive to do more to alert parents to the assistance available.

Its chief executive Marie Marin said the survey painted a worrying picture for families.

She said the cost of childcare often eradicates the financial benefits of working, leaving parents "pay neutral".

"With many parents forced into reducing their working hours or leaving employment all together, it is paramount that the Northern Ireland Executive moves forward with the childcare strategy," she said.

Christine Osborne O'Toole has three children under 10 and was among the people who completed the survey.

"I was fortunate to be able to take a career break after my third child was born," she said.

"My childcare costs were working out at several hundred pounds more than my salary, so I would have been making a loss.

"I am now back working full-time, although my childcare costs are more than half my take home salary, I see this as temporary pain for long term career gain.

"I really think more government support is needed for parents, it shouldn't have to be a choice between kids and career."

[Shotoflight]

6m trapped in poverty: Poor earning Brits fail to cover cost of living

for the first time since records began, working families in poverty outnumber the 5.1 million jobless households in poverty

http://www.mirror.co.uk/money/personal-finance/austerity-britain-six-million-working-1457289

The damning figures come as experts warned households face more misery – an additional five years of austerity because of George Osborne’s disastrous handling of the economy.

Some 6.5 million people are classed as “underemployed” – lacking the paid work they want.

The number of people working part-time, but wanting full-time work is now 1.4 million – up by 500,000 since 2009.

Many are hanging on to their jobs by agreeing to fewer hours.

And 4.4 million jobs pay less than £7 an hour – under the Living Wage of £7.45 an hour considered the minimum needed to provide a basic standard of living.

A report by the Institute for Fiscal Studies says Mr Osborne may impose another £8billion of welfare cuts and hike taxes by an extra £11billion when he gives his Autumn ­Statement next week.

[Shotoflight]

One in five hide savings and debt from their partners

Millions of Britons fail to tell their partners of their outstanding debts, savings or investments.

http://www.telegraph.co.uk/finance/personalfinance/savings/9693612/One-in-five-hide-savings-and-debt-from-their-partners.html

Twenty per cent of Britons - or 6.2 million of us - have debts that they have not disclosed to their partners. The average value of these outstanding debts is £9,546.

Other financial skeletons include hidden savings and investments, with 4.3 million people admitting that they have private nest eggs of savings and investments kept secret from their other halves. On average, these concealed finances are worth £2,004.

According to a survey by Prudential which examined the attitude towards financial planning among cohabiting couples over 40, 14pc of respondents say their partner does not know how much they earn. For 9pc of these people, this is because they claim they do not discuss earnings – despite living under the same roof. However, the remaining 5pc admitted this is because they deliberately mislead their partners into thinking they earn more or less than they actually do.

When those who had admitted to having hidden debt were asked how the situation arose, more than a third said they had borrowed money to cover everyday living costs. Thirty-three per cent said they had borrowed the money to pay off other outstanding debts, such as credit card bills, and a further 6pc said the debt arose through travel costs.

More reasons for this hidden debt included overspending due to an emotional situation, with 5pc claiming this was the reason for their financial trouble, and a further 5pc said their debt had been inherited from previous relationships, such as joint mortgages.

[Shotoflight]

Underemployment affects 10.5% of UK workforce

http://www.bbc.co.uk/news/business-20509189

The main reason for the growth of underemployment has been the economic downturn of the past few years.

"During this period many workers moved from full-time to part-time roles and many of those returning to work after a period of unemployment could only find part-time jobs," the statistical office said.

The growth of underemployment has gone alongside a big fall in the real value of earnings, the ONS said, which have been outstripped by inflation in recent years.

Labour market economist John Philpott said: "Approaching one in five economically active people are struggling in today's 'no or not enough work' economy.

"Add in the effect of falling real take-home pay for the vast majority of people in work and it becomes clear how much distress is being suffered."

The TUC's general secretary, Brendan Barber, said: "Being underemployed carries a huge pay penalty that puts a real strain on people's finances.

"Long periods of underemployment can cause longer term career damage, which is particularly worrying for the one in five young people currently trapped in it."

Edited November 28, 2012 by Shotoflight

[Shotoflight]

Why you may have a childcare bill of £16,224

Working couples struggling to pay for provision as charges spiral

http://www.belfasttelegraph.co.uk/news/local-national/northern-ireland/why-you-may-have-a-childcare-bill-of-16224-16243161.html

Soaring childcare costs mean that households with two children need an income of more than £46,000 a year just to pay their bills.

The shocking figure comes as new research shows the average family with two kids is now spending £16,224 per year (or £1,352 a month) on childcare.

It means that a working mother would have to earn a minimum salary of £20,200 solely to cover childcare bills.

Other average monthly costs for mortgage payments, electricity and heating bills, grocery and fuel amount to £1,435.

Coupled with the outlay in childcare, Northern Ireland families with two children need £2,787 per month in order to make ends meet.

Ulster Bank chief economist Richard Ramsey said that soaring inflation, the downturn in the economy and the state of the labour market means more mothers are returning to work.

“As inflation has gone through the roof, food prices are up 30% in five years and energy bills 50% since 2007, so increasingly households are reliant on two incomes and can’t afford women to take career breaks. They are having to weigh up their options and look at the long- term benefits.

“In the short-term there may be no financial benefit in working if you have three children, but what is happening is people are investing in their future; trying to maintain a job, a potential source of income and skills as there would be strong competition for a job with the same salary and benefits in the future.”

Struggling parents have called on the Executive to intervene to reduce the crippling costs after the survey revealed that two out of three families are finding it difficult to pay for childcare.

Mr Ramsey explained that the burden of childcare costs means less disposable income, which has a knock-on effect on the economy. He said: “Mortgage and childcare are absolute priorities and non-negotiable. “Then comes things like heat, electricity and then discretionary spending.”

Belfast arts officer Christine Osborne O’Toole (37) and her 38-year-old husband Cormac, a financial adviser, have three children, Rory (9), Adam (7) and Lucy (5). Their combined annual net income is £60,000.

The children go to an after-school club which works out at £200 each a week before you take any other costs into account, so it works out about £900 a month.

Edited November 28, 2012 by Shotoflight

[Shotoflight]

NI working 'five years past retirement'

http://www.u.tv/News/NI-working-five-years-past-retirement/f37c0956-e502-45fb-b488-d13dbbd802d3

It may not simply be a question of choice though, as the annual study by financial services provider LV= also found that working past retirement is becoming more and more driven by necessity.

[Shotoflight]

UK

Cost of heating a home rises by £230 in five years

The cost of heating a home has risen by 63 per cent over the last five years

http://www.telegraph.co.uk/finance/personalfinance/consumertips/household-bills/9707074/Cost-of-heating-a-home-rises-by-230-in-five-years.html

The average household energy bill - including heating, hot water and lighting – will stand at an “eye-watering” £1,334 a year by Christmas, research by Uswitch.com found.

The cost of heating the home accounts for almost half of the total bill, meaning that average annual heating bills will stand at £587 a year by the end of December, up from £360 five years ago.

The “staggering” difference of £227 has “knocked consumers for six”, the price comparison site said.

[BelfastVI]

UK

Cost of heating a home rises by £230 in five years

The cost of heating a home has risen by 63 per cent over the last five years

http://www.telegraph.co.uk/finance/personalfinance/consumertips/household-bills/9707074/Cost-of-heating-a-home-rises-by-230-in-five-years.html

The average household energy bill - including heating, hot water and lighting – will stand at an “eye-watering” £1,334 a year by Christmas, research by Uswitch.com found.

The cost of heating the home accounts for almost half of the total bill, meaning that average annual heating bills will stand at £587 a year by the end of December, up from £360 five years ago.

The “staggering” difference of £227 has “knocked consumers for six”, the price comparison site said.

Should buy a new house with higher insulation standards. (couldn't resist the plug)

I imagine the costs in NI are higher with so many on oil.

[Shotoflight]

Should buy a new house with higher insulation standards. (couldn't resist the plug)

I imagine the costs in NI are higher with so many on oil.

I would agree - it is definitely becoming more of a consideration - a bit like mpg and road tax on what car you go for.

Even if you aren't a tree hugger, most get the message when it hits you in the pocket

[2buyornot2buy]

The only issue being, like a car i can get a old model for much cheaper. Might not have as good MPG but i save thousands on the purchase price.

Looking at new builds in Belfast, i can save tens of thousands buying an older semi over a new build. That's a lot of heating oil. I can also do some things relatively cheaply to improve on efficiency. Its never going to be as good but saves me paying the builder for his profit.

[Shotoflight]

Sorry - I was agreeing the costs would be higher due to most on oil.

Obviously there is compromise and trade off as well as taste and affordability - but the longer term view is also important, I would have thought.

Surely the EPC would also be a good guide?

[Shotoflight]

Tis the season................

One in 10 Northern Ireland people say they can afford Christmas

http://www.belfasttelegraph.co.uk/news/local-national/northern-ireland/one-in-10-northern-ireland-people-say-they-can-afford-christmas-16244252.html

Just one in 10 people believe they will be able to cover the cost of Christmas next month and over a third haven’t cleared their credit card bills from last year.

With just 27 days until Christmas, and retailers counting on us to shop in 26 of them, families are feeling the pinch.

When questioned earlier this month by LucidTalk polling for the Belfast Telegraph, a massive 88.7% of people were either experiencing or anticipating financial pressure as a result of the festive season.

[2buyornot2buy]

I thought the EPCs we effectively useless. Just a money spinner for the EAs. Could be wrong though.

[Shotoflight]

I thought the EPCs we effectively useless. Just a money spinner for the EAs. Could be wrong though.

I got one done a few years ago - by an independent guy, not an EA. Not sure who does them now. They probably are effectively useless for the simple reason the average housebuyer pays them no heed.

Perhaps the time is coming that they should.

The guy who carried it out said the NI average score was 50% which either shows how poorly energy efficient the average house is or the amount of scope there is for improvement - depending on your viewpoint.

Check out some for relatively new houses if you get a chance - they can be surprisingly poor.

Legally a house must have one to be sold.

[2buyornot2buy]

And to be rented...

[Satscene]

UK

average annual heating bills will stand at £587 a year by the end of December, up from £360 five years ago.

£587 a year??! Am i missing something?

Wish i could heat the house for a year for that. Today paid £305 for only 500ltrs oil and that wont last long!

[2buyornot2buy]

I'd say my gas averages out at a lot less than that. Only on 6 months of the year.

[Shotoflight]

Postcode lottery for heating oil prices

http://www.newsletter.co.uk/news/postcode-lottery-for-heating-oil-prices-1-4545931

Prices for 900 litres are averaging £200 more than this time three years ago, leading more consumers than ever before to shop around to get the best deal.

Antoinette McKeown of the Consumer Council highlighted that almost 70 per cent of homes in Northern Ireland use heating oil as their primary heating source – saying such a high dependency means consumers need safeguards.

“With fuel poverty in Northern Ireland one of the highest in western Europe then regulation could ensure that fuel poor households have the same support and safeguards that electricity and natural gas consumers have.”

[Shotoflight]

Which? says millions 'struggling' financially

http://www.bbc.co.uk/news/uk-20572144

Millions of households are struggling to make ends meet, consumer organisation Which? has claimed.

Its research, based on a poll of 2,100 people in October, suggests nearly 10% of households have defaulted on a loan, bill or housing payment.

Some 32% of people surveyed say they are finding it difficult to cope on their current level of income.

[Shotoflight]

Important Christmas shopping season well under way

http://www.jprblogwire.com/2012/12/important-christmas-shopping-season.html?spref=tw

Last month’s Annual Survey of Hours & Earnings (ASHE) for 2012 alongside the official UK inflation figures put some numbers on these earlier scenarios. Since the UK recession officially began in Q2 2008, pay cuts and wage freezes have been commonplace within the private sector in Northern Ireland. Meanwhile UK consumer prices have increased by over 14% cumulatively between April 2008 and April 2012 (and even more since). This compares with a cumulative rise in median earnings (for all employees part-time & full-time) of less than 3%. This represents a cut in real terms of 11%.

The overall figures conceal significant differences between the private and public sectors. Indeed, the median private sector wage in April 2012 was almost 3% lower than the corresponding level in 2008 before inflation is taken into account. After inflation, Northern Ireland’s private sector posted a real terms cut of almost 17%. One contributory factor behind this fall is the shift from full-time to part-time employment.

Full-time employees (all sectors) have fared rather better over the four years to April 2012. Indeed, the median public sector full-time employee wage managed to outpace inflation with a cumulative rise of over 17%. This made for a real terms increase of just over 3%. Meanwhile, the private sector median posted a real terms cut of over 10% in the four years to April 2012.

The squeeze on household incomes from unemployment, inflation and tax rises has poured red ink over the finances of many households in Northern Ireland. In turn, this explains why one in five retail units are now vacant. With inflationary pressures expected to persist and further tax rises in the pipeline, it will be some time yet before households experience their own ‘Black Friday’. That is, when their disposable incomes start to rise at a faster rate than their costs.

[Shotoflight]

Household spending rises as fuel prices soar

Squeezed families' weekly spending rose to a new high last year, with households shelling out over three times more on petrol-related costs than on fresh fruit and vegetables, official figures showed today.

http://www.telegraph.co.uk/finance/personalfinance/consumertips/household-bills/9721853/Household-spending-rises-as-fuel-prices-soar.html

Households typically spent around £483.60 a week on their regular outgoings, representing a £10 a week increase compared with 2010 and the highest average expenditure recorded by the Office for National Statistics' (ONS) annual Family Spending report series.

The report showed how people have cut back their spending on new cars, clothing and furniture as costs for other "vital" outgoings such as rent and household fuels have increased.

Compared with a decade ago, spending on fuel has climbed from 9pc of total expenditure to 15pc. For the the lowest income households, the figure rises to 23pc of total expenditure, according to the ONS

Transport costs took up the biggest chunk of spending at £65.70 per week, and within this figure, spending on petrol, diesel and motor oil was up by £3.30 compared with 2010 at £24.90 a week.

Households are spending around three and-a-half times more on these petrol-related costs each week than they are spending on fresh fruit and vegetables, which remained unchanged in 2011 on the previous year at around £7.10.

The report comes in the same week that Which? estimated that more than 10 million households are feeling financially squeezed and almost one in 10 have defaulted on a loan, bill or housing costs.

[Shotoflight]

Autumn Statement: Osborne takes cash from middle class and pensioners

http://www.telegraph.co.uk/finance/budget/9723999/Autumn-Statement-Osborne-takes-cash-from-middle-class-and-pensioners.html

Experts from PwC said "middle England are the biggest losers" under the Chancellor's new package of tax changes and spending cuts.

Official figures show the average household will be more than £1,140 worse off by 2015 since the Coalition came to power, with the top fifth of households set to be £2,370 worse off by this date. This includes the impact of tax, benefits, and spending changes.

Under the measures announced today, Mr Osborne's Autumn Statement will drag around 400,000 more people into the 40p rate of income tax and wealthier pensioners will get less tax relief.