Average Worker 'Free Of Living Costs'

If you were to spend all of your income on your annual living costs, you would be completely free of them by today.

Based on the average UK household monthly living cost of £2,043 and the average gross monthly household income of £2,956, Halifax bank has calculated that, looking across the calendar month of May, today would be ‘Income Independence Day’. This is the day that living costs have been covered and an average households’ monthly income becomes their own to use as they wish for the remainder of the calendar month.

Across each of the nations, Scotland had the shortest wait (May 20th), followed by Wales and Northern Ireland (21st). There is little difference for households that rent rather than pay a mortgage, with the day where they have paid off all of their living costs falling on the 23rd, just one day later than the overall national average. The research also shows that if just income tax and the cost of housing** is taken into consideration, there is still at least a two week (14 days) wait until these have been paid off, and this stretches to three weeks (21 days) in London. On average, across the UK, households waited until 15 May to have worked to pay off these costs alone.

Nick Young, Head of Halifax Current Accounts said: "Managing income versus expenditure over the course of a month can be a juggling act for some families. Halifax’s research shines a light on just how many days of the month the average household must work in order to cover their living costs and have money left to do with as they wish. It offers a fresh perspective on the reality of the cost of living for the average UK household."