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MoneyWeek article- how to meet the minimum income standard

Journalist: Marc Shoffman, Freelance

ended 02. September 2024

New research by the Joseph Rowntree Foundation suggests a single person needs to earn £26,800 a year to reach a minimum acceptable standard of living in 2024. A couple with 2 children need to earn £66,200 a year between them.

https://www.jrf.org.uk/a-minimum-income-standard-for-the-united-kingdom-in-2024#_-how-mis-compares-with-incomes-on-benefits-and-the-national-living-wage

I am seeking comments on if this is enough to live on, does it give space for savings/investments, how can people boost their income to enhance their standard of living?

 

 

3 responses from the Newspage community

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Editor
Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
These findings serve as a stark reminder of the economic tightrope households are walking, with the financial goal of many being simply to survive rather than thrive. While the JRF MIS figures provide a crucial benchmark, for many, this remains a distant goal rather than a current reality. A backdrop of economic uncertainty and a cost-of-living crisis hit families like a financial tsunami, leaving many struggling to stay afloat amid rising expenses. The issue is that these figures do not account for savings or investments, which are crucial for financial security and future planning. Yet, with the cost of essentials enveloping a significant portion of income, the room for discretionary spending, let alone saving and investment, is minimal. The gig economy has served as a bridge, helping individuals cross financial gaps with supplemental income. However, ultimately, the MIS is merely a starting point in a race where costs perpetually outpace earnings, leaving many struggling to keep up.
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Patricia McGirr
Founder at Repossession Rescue Network
This threshold might cover the basics, but it doesn’t offer much breathing room. With inflation, price hikes, and taxation all out of our control, it’s a toxic mix if you're already struggling. Recent stats show many can’t afford an unexpected £850 bill and a lot of people will be in this category. Savings and investments and even life cover are often sacrificed to pay for the day-to-day needs and that’s a very risky move. Diversifying income though side hustles is a lifeline for many but savvy money management is the key. Sadly we don't teach this at an early enough stage, leaving many to make it up as they go along.
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David Nicklin
SSAS Consultant at Retirement Capital
£26,800 a year may keep the lights on, but it won’t light the path to financial security. The Joseph Rowntree Foundation's figures show what it takes to survive, but survival isn’t the same as stability. With rising costs and uncertain times, simply getting by isn’t enough.
To build a future where you’re not just surviving but thriving, you need to go beyond the basics. Whether it’s finding additional income streams, leveraging tax-efficient savings, or making smarter investments, the key is to act now. A robust financial plan is essential but most people have no idea where to start and wait until it's too late to start thinking about their future.