Monday, Oct 29, 2007
So thats where and why the FTB's have disappeared!
Times: Taxman to take almost half a new graduate’s starting salary
Reform points out in a report that property prices for first-time buyers are eight times the average earnings of those aged 22 to 29, up from five times in 1999. It is also indicated that a new graduate on an average starting salary of £27,155 would be left with only £13,862.26 a year to spend after student loan repayments, direct and indirect taxation, national insurance, pension contributions and council tax.
Posted by enuii @ 10:59 PM (922 views) Add Comment
15 Comments
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1. Si said...
Wow, £27k
I'm a phd and I barely earn more than that.
2. enuii said...
Nice quote at the bottom, “A decade under Labour has left many young people facing crippling student debt, high council tax bills and, following the abolition of the 10p rate, higher levels of income tax.” Never mind the highest mortgage multiples ever!
3. planning4acrash said...
Yeah, and interest rates on student loans went up from 2.4 to 4.8% this year, coz they are index linked to RTPI, but the government only controls CPI. I see no reason why they won't hit 10% within the next 5yrs. Let every student you know that you'll be charged at least £500/yr from now on with the standard 10k loan, that means that most students will be treading water, paying a big chunk of their salary, or will rack up stupid debts while they go travelling and doing further study, or whatever young peep's do nowadays!!
4. tyrellcorporation said...
“A decade under Labour has left many young people facing crippling student debt, high council tax bills and, following the abolition of the 10p rate, higher levels of income tax.” Never mind the highest mortgage multiples ever!
Yep and they'll still go out and vote Labour!!!
5. Nelson said...
I graduated in the late 80's, fought against the introduction of student loans, we were the last year that didn't have them etc. However I still don't think that even pre-student loans, new graduates ever really bought houses until well into their careers - certainly none of my friends did until the mid 90s (housing crash high unemployment helped there too - I don't forget the tories) when we were all around 25 yrs old. So why do people now seem to assume that 21 year olds have the right to buy a house with their first salary? Surely people have to work a bit first and save up for a deposit for a start?
6. planning4acrash said...
Oops, index linked to Retail Price Index!!
7. Collywolly said...
"average starting salary of £27,155"
Where do they get these figures from?
8. Surfgatinho said...
"new graduate on an average starting salary of £27,155"
Sorry, did I misread that. Are they joking? More like £19K
No wonder the Times have been so unphased by the sustainability of HPI if they think people earn this kind of money. What do they think the UK average wage is then? £40K?
9. Followthebear said...
New graduates starting on £27K - are you having a laugh?
10. Crutchley said...
The company I work for pays £35k to new grads and more for MBAs... If you take city jobs into account, £27k seems like a fair average.
11. Blooperman said...
The report that the reporter purports to have read says that the average starting graduate salary is 14, 515. The average graduate salary of 27,155 (for ages 21-35) is what the journo picked up on and mislabelled. See http://www.reform.co.uk/filestore/pdf/071025%20Class%20of%202007%20Inaction%20sinks%20the%20IPOD%20generation.pdf
pp 33-34
12. Graddy said...
Why do people with a phd always expect to start on more than other graduates? In my experience, the majority of people who did a phd were the ones who didn't have the soft skills to get through assessment centres and interviews!
13. inbreda said...
It's true - the average is £27k.
They both work for their fathers, and the other 9 million graduates are unemployed, but the average is still £27k.
14. Orwell said...
Rubbish.
At David Lloyd where I swim, they earn the minimum wage...
15. enuii said...
Must be sports science graduates then at David Lloyd centres, hardly rocket scientists!