Average Home 'Costs 10 Times Annual Income Of Full-Time Worker

The typical UK home costs more than 10 times the annual income of full-time workers, analysis of official figures has found. And the situation is only slightly better on first-time buyer homes, which cost almost eight times the average income. A housing charity has claimed the findings show home ownership is now a "distant dream" for millions across the country. The average property in the UK is currently valued at £284,000 by the Office for National Statistics, while first-time buyers typically paid £215,000 to climb on to the property ladder. By contrast, the median gross annual earnings for full-time employees is £27,200, according to latest official figures. Read more on the Daily Mail website.

Failure of Universal Credit Would Leave Us with the Worst of Both Worlds

The principles behind Universal Credit need defending – otherwise we risk being left with the worst of both worlds.  While UC strengthens work incentives for some, other groups are not so well off in all circumstances. Families with children would hit a ceiling where, despite working more hours, steep withdrawal of benefits leads to a flat-lining or even a decline in disposable income after childcare costs. In some cases, families would be worse off working full-time than part-time. Many of the design and implementation issues can be solved. But, despite the often-sound principles behind UC, to make a real difference it needs to be linked to industrial and labour market policy to address the barriers that prevent some people from moving out of benefits and into work. This includes the prevalence of low low-paid, insecure jobs, a lack of affordable childcare, insufficient skills and discrimination against some groups in the labour market. Joining up UC to these other vital areas of policy would help it to succeed and encourage the support that it needs from across government. Read more on the Joseph Rowntree Foundation website.

Working Families Hit Living Standards Ceiling Under Universal Credit

Families with children who work full time could find themselves with less disposable cash than those who work part-time under Universal Credit, according to a new report for the Joseph Rowntree Foundation.  The report assessed whether UC will meet its central aim of making work pay, and enable low earning families to reach a minimum acceptable living standard. It found that families with children will hit a ceiling where, despite working more hours, the steep withdrawal of UC means their disposable income after childcare costs fails to increase, or even falls. In some cases, families will be worse off working full-time than part-time. This means that many families with children receiving UC will fall short of an adequate standard of living.  Download a copy of the report from the JRF website.