Poverty or failure to budget?

There was another blog in yesterday's Guardian about poverty and incentives to help people back into work.

There were the usual knee jerk reactions on both sides of the debate and the debate was very much on single people, so remember what follows is only about singles, not families.

I commented that part of the problem was the mindset involved; that people got used to living on their benefits. They would see their Housing Benefit for rent at £115 (in Bristol) plus Job Seekers Allowance @ £65 would give them £180 a week. So when an otherwise suitable job came along that would "only" give them a take home pay of £240 they were negative about it because they would then "only" be working for £60.

I went on to say that was understandable in a way, but many people were actually working and doing fine on that £240 (thinking specifically about me and the many work colleagues I knew who earned less) and they don't even think about that £60 difference.

I was trying to explain that the difference between real or potential benefit levels and take home pay existed for everybody but people in work tended not to focus on that while people out of work did. Some people on JSA aren't interested in that job because it's only worth £60, while nobody in that job gives it up because it's only worth £60.

But, of course, I got jumped on. Someone asked how "fine" and I answered. I said it paid my housing costs (very much in line with rent) and bills, paid for internet, cable package including sport and movies add ons, other essentials and two fortnights holiday in Greece or Spain each year plus other time away and entertainment. That seemed good enough to me and a big enough incentive to get off benefits.

Those who expressed disbelief got "recommendations" by other posters for simply saying so - presumably because that suited their kneejerk reactions. One even analysed my figures in much detail and concluded the £125 left (the £60 gain on top of JSA @ £65) after bills was manageable although a friend of his led a similar lifestyle, was much higher paid than me, but was hugely in debt.

So, while poverty exists and it's relative anyway, not necessarily meaning destitution, for some it appears to be more about money management.

And, maybe, about entertainment habits. A few pints followed by a take-away does make a big hole in finances. So look for an alternative if you can't afford it too often.