There are no (decently printable) words to describe my reaction to the bedroom tax, thus I’m leaving it to those who can.


Parkinson Ponders

There is some clamour in the media for the “Minimum Wage” to be replaced by a higher “Living Wage” and for more lower-cost “Affordable Housing” to be built.  I will leave detailed analysis of the concepts of those terms to a future blog-post where I will look at the issue of “poverty in a modern economy”; here I will concentrate on assessing whether the combined impact of a Living Wage + Affordable Housing would result in less need for “in-work” welfare benefits.

In compiling the table below I have used the following assumptions:

  • A couple in their early thirties with 2 dependent minor offspring;
  • Rent for a 3-bed semi-detached house with garden of £520 per calendar month;
  • A Minimum Wage (M.W.) of £6.19 per hour, Living Wage (L.W.) of £7.45 per hour;
  • Scenario 1: both work 37.5 hours per week (p.w.) on the M.W.;
  • Scenario 2: both work 37.5 hours…

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