Budget 2024: 'I just about make ends meet on £21,500 a year'

"I Earn £1,800 A Month But Have Nothing Left"

On Wednesday, the Budget will show us the amount of tax we'll each pay and outline the government's spending plans for services such as the NHS, education, and transportation.

BBC News has been engaging with individuals from various income levels to understand their expectations for the Budget and, in certain instances, their concerns about potential effects it may have on them.

If there are topics you want us to address, feel free to reach out through Your Voice, Your BBC News.

Hannah Clarke, a mother of two from Rutland in the East Midlands, was balancing two part-time jobs but has recently decided to pursue a full-time midwifery degree. In addition to her studies, she also spends six to eight hours each week working as a beauty technician.

She brings in around £1,800 each month, primarily from a student loan that isn't subject to tax. She mentions that this amount nearly offsets her mortgage payments, which increased by a third earlier this year, along with covering her bills and fuel costs.

"I manage to get by, but it's challenging, and there are times when I need to reach out for assistance," she explains.

She believes that free school meals should be available to everyone without needing to check financial eligibility. However, if that’s not possible, she suggests that the income limit for qualifying should be reduced. Additionally, she argues that if fuel duty increases, the additional expense for each litre of petrol or diesel "definitely should not be transferred to drivers."

"Living On £1,500 A Month: No Way To Move Out"

Luken Coleman is a Level 3 business administration apprentice at a recruitment agency, bringing in around £1,500 each month. Before this role, he was employed in retail and held various manual labor positions.

He has a full-time job from Monday to Friday and attends college once a month.

Luken resides in Newbury with his mom and dad, giving them £200 each month for rent. Although he handles all his own expenses, he can't manage to move out just yet. He expresses a desire for apprentices to receive higher wages.

The typical rent in my area ranges from £700 to £900 each month. If I decided to relocate, I'd have to find a place further away, which would mean I'd need a car.

As a person approaching their mid-20s, he expresses that it can sometimes seem like you're not accomplishing very much while still residing with your parents.

"From a mental health perspective, it can be challenging. Apprentices typically earn a lower salary since they're still gaining experience on the job. However, this can impact your self-esteem, especially when you're not fully self-sufficient."

"I Earn £7,600 Monthly, Yet £2,600 Is Childcare"

Yasmin Taylor, a tech consultant from Kent, is also a single parent raising two young kids.

Her largest monthly expense is £2,600 for childcare. The children's father contributes to these costs as well.

"I put in a lot of effort in my studies and work to secure a well-paying job, but it feels like I’m being penalized for having kids," she expresses.

Due to her salary of £150,000, Yasmin is not eligible for Child Benefit payments, nor can she receive assistance through tax-free childcare or the 30 hours of free childcare program.

She recognizes that her income puts her in the high earner category, but notes, "You still have to cover the costs for gas and electricity, and those prices have increased significantly."

A major worry for her this winter is the cost of energy bills.

She is curious about the actions the chancellor might take regarding capital gains tax (CGT). While she currently isn't affected by CGT, her next career move involves becoming a partner at her firm. This role would require her to purchase shares in the company, which could later incur CGT if she decides to sell them.

"I Can Only Afford A Caravan For £1,590/month"

Kirsty Brett has a part-time job as a cleaner at a care facility, making the minimum pay of £11.44 per hour.

She has just relocated to Bury St Edmunds in Suffolk to stay with her sister while she searches for a new place to live, after quitting her previous job as a caregiver in Essex.

Kirsty struggles with osteoporosis, which has made her job challenging. Additionally, she found living in Essex to be quite costly. She gets £550 each month from Personal Independence Payments.

She wants to see an increase in the National Living Wage.

Individuals ought to earn a minimum of £15 per hour due to the rising living expenses. This increase would greatly benefit many individuals.

"I don't understand how the amount they consider to be the minimum wage is enough for someone to live on."

She is currently exploring "the most affordable choices" for her living arrangements. According to her, renting a one-bedroom apartment is around £1,300 per month, so Kirsty is considering renting a caravan instead, which costs about £800 a month.

"Worried About Cuts To My £2,750 Benefits"

Nicole Healing is leasing a one-bedroom apartment in Brighton for £1,250 each month.

Nicole has a background in civil service and digital marketing, but she has been unable to work for the past few years because of various disabilities, one of which is a connective tissue disorder that leads to joint dislocations.

Nicole, who prefers the pronouns they/them, shared that they receive £1,042 in Employment and Support Allowance, £798 in Personal Independent Payments, and £917 in Housing Benefit each month.

Although they believe they are in a "lucky situation" right now, Nicole expresses, "I feel like I'm at the mercy of the DWP."

Nicole is really panicking over the potential reductions to benefits in the upcoming Budget and what those changes could imply for her situation.

"I'm really concerned about the harmful messages in the media regarding disabled individuals who receive benefits."

They mention that their energy costs have risen considerably over the past few years, and they are concerned that their rent might also go up.

"I can't use my PIP for its intended purpose since half of the money goes to cover my rent."

Nicole is seeking more details from the Budget regarding the assistance intended for individuals with disabilities. She is also optimistic about a limit on energy costs this winter.

"I Aim To Maximize My £1,920 Monthly Savings"

Andrew Cunningham, a blogger and web developer, resides in Glasgow with his husband. He refers to them as "average earners who are careful savers" and shares that they have been putting money into their individual savings accounts (ISAs) and pension plans to prepare for their retirement.

He is worried about the speculation that the upcoming Budget may impose a limit on the amount of money you can keep tax-free in an ISA. "That would negatively impact us and discourage saving significantly."

He is concerned that implementing a uniform rate for pension tax relief could negatively affect individuals with average incomes.

Since Andrew works for himself, he has established a self-invested personal pension. If he were to receive a flat rate for tax relief, it would result in a smaller contribution to his pension.

"We're going about our daily lives under the assumption that we might not receive a state pension when we reach retirement age—at least not in its current format," he explains, noting that the portion of the government's budget allocated to state pension spending has increased over time.

He believes that in the future, the government may need to either increase the retirement age or reduce the amount of pension benefits provided.

"Earning £100,000 Yet Feeling Financially Strained"

Ben Howard and his wife Sarah, who live in Bristol, are looking forward to welcoming their first child in February. Together, they earn a combined income of £100,000. In September, their mortgage payments increased significantly by 60%, bringing them to £1,400.

Ben mentions that they feel "at ease," but believes the government ought to take further action regarding childcare expenses. He argues that, in certain situations, it might actually be more practical for parents to stay at home rather than go to work.

"However, that brings us back to our career goals."

Ben isn't entirely sure that Labour will stick to their pledge of not increasing taxes on those who are working. "Will I have to worry about taxes on my pension contributions or any hidden taxes?"

He anticipates that his financial situation will decline following Budget day. "They're focusing heavily on supporting businesses and boosting the economy, which I understand, but it doesn't seem to connect with my own paycheck."

"My £1,200 Pension Fails To Cover Expenses"

Allana Lamb is a veteran who has served in both the army and the navy, and she is now retired from her career as a social worker. Unfortunately, she is just a few pounds above the limit for pension credit, which means she is not eligible for the winter fuel allowance.

"I'm really worried that the government might put an end to it," she remarks. "While the state pension is protected with a triple lock, it still falls short of meeting the rising cost of living."

She believes that the wealthy will continue to accumulate more wealth as a result of this Budget, while those who are struggling or barely making ends meet will face increased taxes.

Allana receives a complete state pension along with a modest army pension, bringing her monthly income to £1,200. She expresses that this amount does not cover all her expenses and anticipates that her mortgage will "almost double" in the coming years. "That will lead to having more expenses than income each month."

Allana believes that the limit for receiving council assistance with social care expenses should be increased. At present, individuals with assets totaling £23,250 are eligible for support. The Labour party has already abandoned proposals to raise this limit.