Living single offers undeniable freedom - complete control over the remote and the liberty to do what you want, when you want. However, this independence comes with a significant financial penalty known as the 'single tax', which leaves individuals thousands of pounds worse off each year.
The Hidden Cost of Single Life
Mirror journalist Jackie Annett has experienced this first-hand as a single parent for nearly 16 years. With her 18-year-old daughter still in education and unable to contribute to household bills, Jackie estimates the financial disadvantage of living alone leaves her approximately £10,000 worse off annually.
"It's always irked me that single people have to fork out more just to survive," Jackie explains. Rather than simply accepting this financial reality, she decided to take proactive steps to beat what she calls 'the system'. While some limited help exists, such as the 25% council tax single person's discount, she questions why the reduction isn't a full 50%.
Other essential costs like water bills have also increased by around £123 per year depending on location. Jackie notes that installing a water meter could offer savings, particularly for those living in properties with more bedrooms than occupants, as you only pay for what you use.
Creative Solutions to Generate Income
One of the most substantial expenses for single people is housing, with no partner to split mortgage or rent payments. While house sharing isn't practical for everyone, especially single parents, Jackie discovered an innovative solution: making her spare space work for her.
Through the government's Rent-a-Room scheme, she earns up to £7,500 tax-free annually by hosting foreign language students. "This not only earns me an extra income," she says, "but also means we learn about new cultures and provides a safe space for these young adults."
Another successful money-making strategy involves hiring out her car, particularly during summer months when her microcamper is in high demand. This venture previously earned her up to £500 per month and now averages around £200 monthly.
Ten Ways to Save and Make £10,000 Annually
Through careful planning and creative thinking, Jackie has compiled a comprehensive list of strategies that collectively help her recover the £10,000 'single tax' penalty:
- Rent out a room/take in foreign language students = £7,500 a year
- Council tax savings through single person discount = £500 a year
- Water bill reductions through metering = £150 a year
- Review energy usage: Using smart meters, turning off appliances, and selective heating = £150 a year
- Batch cook meals: Preparing larger quantities and freezing portions, plus buying discounted bread to freeze
- Hire your car out when not in use = £2,000 a year
- Rent out your driveway/garage = £500 a year
- House swap for holidays - just pay for flights! = £1,000+ a year
- Make use of cashback cards and sites = £300 a year
- Complete a DWP benefits check = amount dependent on circumstances
Jackie's experience demonstrates that while the financial system may disadvantage single people, strategic thinking and willingness to explore alternative income streams can effectively level the playing field. Her methods provide a practical blueprint for others facing similar financial challenges.
