How Little Money Can a Person Live On

7/30/2019 How Little Money Can a Person Live On

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How little money can aperson live on?By Duncan Walker & Keith MooreBBC News Magazine

Continue reading the main story

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There's been weeks of debate over how much money benefitsclaimants should receive. But just how little money cansomeone realistically get by on?

The government says no family on benefits should receive morethan the 26,000 -after tax -the average family earns.

A benefits cap estimated at 350 a week for a single adult and500 a week fora couple or single parent -regardless of howmany children they have

-is being piloted in four areas of London.From July it will be rolled out across England, Scotland and Wales.


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The major weekly cost for most people is housing. But themassive variation in cost across the UK almost renders it pointless

to talk about any sort of average. Many, but not all, people on lowincomes have most or all of their rent covered by housing benefit.

So, excluding housing costs, how much money does a person -forthe sake of simplicity, single and living alone-need to get by?Food

With careful planning, an adult could spend as little as 12perweek on a healthy, balanced diet, says Tom Sanders, a professorof nutrition at Kings College London.

Filling up on starchy foods and cheap fruit and vegetables is key.Think lots of baked potatoes, hearty soups and pasta bakes.

Continue reading themain storyEasy budget dishes

Corned beef hash

Irish beef stew


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Vegetarian chilli

Frittata

Lentil curry

BBC Food blog: Cheap eats that taste good

Many people would need to cut their meat intake down to once or

twice a week, Sanders says, because it is relatively expensive.

Once those principles are accepted, the recommended daily intakeof calories -2,500 for a man and 2,000 for a woman -should berelatively easily achieved.

Sanders recommends foods (selected supermarket prices on 25April in brackets) such as potatoes (Tesco's cheapest 69p a kg),bread (Tesco 60p a kg), pasta (Asda 1 a kg), cabbage (Tesco 69peach), frozen fruit and vegetables, broccoli (Asda 2a kg),cauliflower (Sainsbury's 89p each), bananas (Tesco 68p a kg),tinned tomatoes (Asda 78p a kg), borlotti beans, peanut butter(Asda 98p), eggs (Sainsbury's 12p an egg), cheese (Asda mildgrated cheddar4.24a kg) and milk.Budgeterswould also need to cook at home, partly to avoid the20%VAT added to takeaways and eating out."Living on a budget requires planning," Sanders says.

And there's a catch for those who aren't confident in the kitchen, or

don't already own the necessary utensils.

"Theoretically it is possible to eat on 12a week, but in practice itwill be double that, because people don't have good cooking skillsand the equipment they might need."

On average, the poorest 20% of non-retired single adulthouseholds (those with less than 256a week before tax) spent22.30a week on food and non-alcoholic drink, according to the2012Family Spending Survey from the Office for NationalStatistics.

A healthy diet on 15a week*


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Starchyfood

Fruit & vegetables DairyHigh-protein

food

Sugar

33%ofintake

Five portions a day 15%ofintake

12%ofintake

8%of in250g rice290kcal

10p**

Tomatoes

216kcal

93p for3tins7 bananas

700kcal

68p for1kg

Cheddar

410kcal

75p for100g**

Six eggs486kcal

95p

Jam

518kcal

15p for h

800g bread1880kcal

50p

Sweetcorn

1,100kcal

98p for1kg(frozen)

4 apples

188kcal

87p

250g butter611kcal

33p **

Tin

sardines

214kcal

47p

Vegetab

620kcal

10p for

330g oats1,330kcal

30p**

1kg carrots350kcal

90p

Fruit juice550kcal

68p for litre

4 pints milk1135kcal

1.29

Kidney

beans

280kcal

21p for tin

250g pasta735kcal

15p**

4 tins beans

824kcal

1

Satsumas

246kcal

1for600gChicken

liver

345kcal

45p for227g

1kgpotatoes

720kcal

69p

3 onions

258kcal

57p

Chickpeas357kcal

36p for100g**

(dried)

4,507kcal

1.94

4,432kcal

7.61

2,156kcal

2.37

1,682kcal

2.44

1,138kc

25p

TOTAL

13,915k

14.61

* Based on weekly diet for a woman of14,000kcal -men need 25%more ** part-packSOURCE: RATIOS BROADLY BASED ON THE EATWELL PLATE(NHS). PRICES AS ADVERTISE

SAINSBURY'S AND TESCO WEBSITES

Utilities

Calculating the bills faced by the average single person is difficultas there is no such thing as a typical home. The size of flat orhouse, choice of tariff, level of insulation and the amount of time

spent at home all affect energy use.

An average 31 a week is spent on fuel by households with an

annual income of 9,649, according to a 2012 report from theDepartment of Climate and Energy Change (DECC). Millions of


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households are in "fuel poverty", meaning that they spend morethan 10% of their income on fuel, says DECC.

A lower figure is suggested by the Family Spending Survey, which

says that the average household spent 22.10a week on fuel.For single people living alone in a flat, the cheapest variable dealcurrently available might reduce this to about 706 ayear, or13.57a week, says Archna Luthra of MoneySavingExpert.com."There is a lot you can do like get insulation, put a jumper on, don'twalk around in your shorts. Turning the thermostat down can save

quite a lot of money."

For those wanting to keep a closer eye on things, online

calculators suggest (based on a unit price of12.7p) that a singlelight bulb might cost 1.52a month to run, a television 2.28and awashing machine 3.04

.

But gas and electricity are not the only utilities to pay for.

In 2012, the average water bill for a household in England andWales was 376, which breaks down to a little more than 7 perweek. A water meter could save a single person household about

2 a week, the Consumer Council for Water suggests.

It is also easy to spend significant amounts staying in touch with


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people.

A landline including broadband might be 25per month, with thebest deals coming to about 17a month, says Luthra.Because of the costsinvolved, many people on low incomeschoose to use pay as you go deals instead of contract mobiles.

A monthly contract for a mobile phone like an iPhone or Galaxy S4can be 35a month or more.Continue reading the main story

Living on 1per dayStarting on Monday, 5,000Britons will be challenging themselves to liveon 1a day for five days, as part of a campaign by the campaign groupGlobal Poverty Project.

BBC Personal Finance Reporter Brian Milligan took on the challenge tosee whether he could not just survive but eat a healthy, balanced dieton the budget.

You can see his report onYour Moneyon the BBC News Channel onSaturday 27April at 1030BST

BBC News -Your Benefits and Tax CreditsHaggling and shopping around is key, says Luthra. "For a mobile

phone, if you're out of contract you can cut the cost from 35 to20. You could get a sim onlydeal."For the 20%of single person households with the lowest incomes,spending on communication is 6.50a week, the Family SpendingSurvey suggests.

For anybody with a television, a television licence costs 145.50.

And there are more bills for some.

From April 2013, each individual council will decide which

residents are entitled to council tax benefits. Previously controlledby central government, some councils may now decide that thoseon low incomes may be required to make a contribution to council

tax.


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Transport

The obvious way to keep transport costs low is to minimisejourneys and walk whenever possible -but for many people that isnot an option.

A local train or bus ticket might appear to be reasonably cheap, but

the costs can still add up, particularly if you need to travel morethan a few miles, or your route includes changes.

In London, a single bus ride on an Oyster card is 1.40, or up to4.40for a day of bus travel. In the North East of England, it cancost as much as 2.20for a single four-mile journey.

For commuters, season tickets are frequently in the hundreds ofpounds and can easily go into the thousands. A season ticketbetween Peterborough and London is now 6,888.

Outside towns and cities, public transport can be infrequent at

best, with many people in "transport poverty" because they have toown a car to get around, says transport charity Sustrans.

Areas like Fenland in Cambridgeshire, Eden in Cumbria andHambleton in North Yorkshire are among those where low incomes

mean many people struggle to pay for a car, even though they arelikely to live a mile or more from the nearest public transport.

The AA estimates the cost of running a petrol carthat was up to

14,000 new as 2,400 a year just for for taxes, insurance,depreciation, capital costs and breakdown cover. Putting petrol in


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and actually going somewhere costs more (roughly 12.9p a mile).

The reality is that many people simply have to get around -whether that's to get to the shops or the doctor's, to visit friends, or

to look for a job.

It all adds up -on average, the poorest 20%of single adults spend16.30a week on transport, the Family Spending Survey says.Incidental costs

Unexpected or incidental costs are perhaps the most difficult thingto manage for anyone trying to keep to a strict budget.

What do you do if the washing machine breaks, the toaster packsin, or the sofa collapses?

Continue reading the main story

Eating on a budget

In herBBC Food blog, Emily Angle explains why cheap andsimple food need not be boring

BBC Food explores alternatives to cheap, processed meat

Andrew Webb looks at the diet of state pensioners, for BBCRadio 4's Food Programme

Most private tenants would not be expected to pay for a new roof,but the appliances and furniture might well be theirs to fix andreplace -a major expense if something goes wrong.The average household spends 9.50 a week on furniture, 1.40

on things like duvet covers and sheets, and 2.90 on householdappliances, the Family Spending Survey suggests.

Then there are all of the little things that many people take forgranted.

The average household spends 2 a week on tools and electricalequipment, 1.50 on glasses, crockery and kitchen utensils, and3.30 on things like medicine, plasters and spectacles.

The figures for food shopping do not include many other


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essentials, including toilet paper (80p a week), toiletries and soap(2.30a week), hairdressing (3.30a week) and hair products(3.70a week).

The Joseph Rowntree Foundation (JRF) produces a "MinimumIncome Standard" report, based on what focus group membersconsider a "socially acceptable" standard of living.

It suggests that a single person needs 11.65for personal goodsand services (including things like healthcare, toiletries, cosmetics

and hairdressing), 11.55for household goods, 3.61for upkeepof the home and 1.98for household insurance.Avoiding these costs is not an option says Donald Hirsch, director

of the Centre for Research in Social Policy at LoughboroughUniversity, who produced the JRF figures.

"Things like toothpaste do get used up. Haircuts are an obviousone," he says.

Clothing

Tucked away at the back of most wardrobes are clothes that arenever worn, says Wrap -a not for profit company which advises onsustainability.

It says the average home contains clothes worth 4,000-amounting to 115garments per adult, but of these 35have beengathering dust for a year or more.


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"There are some clothes that are essential and some clothes that

you buy because you want them," says Wrap's David Moon.

Across all households, average expenditure on clothing is 17.60a week (including 4.20 a week on men'souter garments and7.70on women's outer garments) and 4.10on footwear.For low income single people the figure is

4.80a week forclothing and footwear, the Family Spending Survey suggests.

The Joseph Rowntree Foundation survey came to a figure of 9.31a month, which allowed for budget clothes from supermarkets andcheaper shops like Matalan and Primark.

Among the items its panel considered necessary for the averageman were 10 pairs of boxer shorts, 10 pairs of socks, five pairs of

jeans, two pairsof trousers, two suits, 26

shirts of various types,two pairs of smart shoes and two pairs of trainers.

For women, the list includes 10 pairs of knickers, three bras, four

pairs of tights, 10 T-shirts, two jumpers, two pairs of jeans, fourpairs of trousers, four skirts, two formal dresses, two summerdresses, and two pairs of heels, one of flats and one of trainers.

Discretionary spending

For people receiving benefits, it is spending on items sometimes


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considered luxuries that can prove most controversial.

A packet of cigarettes, for example, costs an average of7.98for20, according to the Tobacco Manufacturers' Association.

At a pub a pint of beer costs 3.50 in London and Surrey, or justunder 3 in the Midlands and the North, according to the GoodPubGuide. The average Briton is thought to go to the pub 4.6times a month, spending 14.70 on each visit.

Should benefits cover the cost of feeding pets?Across all households, the average weekly spend on alcohol

(consumed at home), tobacco and narcotics is 12, compared with7.50 among the lowest income single households, according tothe Family Spending Survey.

Spending on catering -including restaurant or take away mealsand alcohol consumed away from home -is 32.70a week acrossall households, or11.50for the low income group.There is other spending which might be considered non-essential.

A typical cinema ticket costs a little over6but can be much more,while a subscription to cable TV starts at about 15a month andnew computer games can be 30.

Owning a pet is also expensive -a dog costing just under 1,200 ayear to keep, a catabout 1,000.Continue reading the main story


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How one BBC reporter tried to live on 53

Gas, electricity, water and TV licence: 23(total cost split withhousemates)

Food shopping:20.66

Toiletries: 1.14

Mobile phone credit: 5

Broadband: 1.25

Gym visit: 1.20

Travel: 0(walked everywhere)Total: 52.55

Trying to live on 53 a week

Living fora year on dropped change

This spending falls under "recreation and culture" in the FamilySpending Survey, which suggests outgoings of63.90a week forthe average household, or17.80for a single person on a lowincome.

Exactly how much people should expect to be able to afford to

spend divides opinion.

Conservative MP Alec Shelbrooke has called for a welfare cash

card to ensure that benefits are spent on "essential" items only -food, housing, transport, clothing and energy.

They would be prohibited from spending the money on "luxury"goods such as Sky TV, cigarettes and alcohol -items which "hard-working families" have to cut back on when money is tight.

Benefits, he says, are a "safety net to stop people falling intoabject poverty". Giving people the money to go to the cinema, orbuy Christmas presents, is not part of the deal, he argues.

But the Joseph Rowntree Foundation's report differs, suggestingthat a single person living alone needs 5.13 a week for alcohol,which allows for the odd bottle of supermarket wine or a few cans

of beer.


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They should be able to spend 44.76on social and culturalactivities, which would include having a television with built-inFreeview, occasional meals out and a one-week self cateringholiday in the UK.

"It does not include a big night out on the town, it's going for a outfor a cup of coffee," says Hirsch. "People think you can't have anacceptable standard of life sitting at home and just surviving."

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How Little Money Can a Person Live On