22nd May 2015
Today is Income Independence Day and marks the point in the year when the average household has worked enough days to pay off their main living costs.
Research by Halifax reveals that if all living costs were to be paid at the start of the year, then 22 May would be the point at which they would be paid off.
Income Independence Day is calculated as the day when the rest of a household’s income would be free to spend on anything they wish.
Based on the average family, monthly living costs total £2,042, and include everything from housing and utilities to health, clothing, transport and internet packages. The average monthly household income is £2,956.
Households in Yorkshire and the Humber, as well as the North West, have a shorter wait for their money to be their own, with income independence coming n 20 May but those in London must wait another four days until 26 May before enjoying the fruits of their Labour.
Those living in Scotland also had a short wait for income independence, hitting it on 20 May, and those in Northern Ireland and Wales had to wait until 21 May.
There is little difference for households renting or paying a mortgages, with the day where they have paid off their living costs. Those that rent will pay off their costs one day later than the national average, on 23 May.
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.’