Living as a single person in Britain comes with a hefty hidden price tag, often referred to as the 'single tax'. For Mirror journalist and single parent Jackie Annett, this financial penalty amounts to a staggering £10,000 a year in extra costs for housing and bills.
Jackie has navigated life as a lone parent for nearly 16 years, and with her 18-year-old daughter still in education, the full burden of household expenses falls on her shoulders. Rather than accepting this financial disadvantage, she has dedicated herself to finding innovative ways to outsmart the system and bridge the income gap.
Confronting the Core Costs
The financial challenges for singles are systemic. While a 25% council tax discount for single occupants is available, Jackie questions why it isn't a more equitable 50%. Furthermore, rising water bills, which have increased by approximately £123 a year, add to the strain.
She suggests investigating if a water meter could lead to savings, as bills are often based on property size rather than actual usage. Most water companies offer a two-year trial period, allowing you to revert to unmetered billing if it proves less economical.
Housing represents one of the most significant expenses, with no partner to share mortgage or rent payments. While house-sharing is an option for some, it's often not feasible for single parents seeking stability for their families.
Proactive Strategies to Boost Income
Jackie's primary solution has been to leverage her largest asset: her home. By moving to a larger property, she unlocked the potential of her spare space. Through the government's Rent-a-Room Scheme, homeowners and some tenants can earn up to £7,500 a year tax-free by taking in a lodger.
Jackie specifically hosts foreign language students, which not only provides a vital income stream but also enriches her family's life culturally. She offers a safe environment for young adults, typically providing breakfast and a hot dinner.
Another lucrative avenue Jackie has explored is renting out her car. At its peak, this venture netted her £500 a month. Now, with more frequent personal use of her microcamper, it still brings in a respectable £200 a month during the summer season.
Jackie's Blueprint for a £10,000 Turnaround
Through a combination of savvy saving and intelligent earning, Jackie has mapped out a plan to reclaim that £10,000. Here is a breakdown of her annual strategy:
- Rent out a room to foreign language students = £7,500
- Council tax single person discount = £500
- Savings on water bills with a meter = £150
- Reduced energy usage via smart meters and mindful consumption = £150
- Hiring out your car when not in use = £2,000
- Renting out your driveway or garage = £500
- Savings from house swapping for holidays = £1,000+
- Using cashback cards and sites = £300
- Conducting a DWP benefits check = amount varies by circumstance
Additional everyday tips include batch cooking and meal planning to make cooking for one more economical, as well as buying discounted bread to freeze.
Jackie's experience proves that while the 'single tax' is a real and challenging burden, a proactive and creative approach to personal finance can effectively level the playing field.
