Disposable Income Levels and Employment

If you work you will have a higher disposable income level, right?

Well actually it isn’t that simple.

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In 2014 the average salary in the UK was £26,500. According to research at the Scottish Friendly the average disposable income each month was £278. That surprises me actually as it sounds quite high, but I suppose if you break it down into weeks it isn’t really.

The disposable income index compiled by Scottish Friendly has some interesting findings. They found that on the whole  unemployed people have a higher percentage of disposable income than part-time and zero-hour workers.

We all know what part-time work is but what are zero hour workers? (I had to look it up too!) Zero hour workers have zero hour contracts which are also known as casual contracts. Zero hour contracts are usually for ‘piece work’ or ‘on call’ work, eg interpreters. Zero hour workers are entitled to statutory annual leave and the National Minimum Wage.

According the Scottish friendly report, the nation’s unemployed have an  average of  £174 left over as spending money each month, compared to just £130 for those who work zero-hour roles. That is quite a difference really and  both are very low compared to the national average.

Calum Bennie a spokesperson for Scottish Friendly makes a really significant point in stating that actually

The findings should serve as a stark warning of the problems facing so many workers in the UK. It’s bad enough that people don’t know what is going to be in their wage packet at the end of the month, but the index shows that for certain workers, there now appears to almost be a disincentive to work

I agree actually it hardly encourages you to get out there and find work does it if you are going to be worse off!

Still working in any ways helps you get more work and can lead onto other things, as well as keeping you CV looking good, keeping skills honed and raising self esteem. It does need to be financially viable though doesn’t it!

Have a look at the disposable income index and see how you compare, it makes interesting reading.

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