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1
2
The survey...
• …asks people to estimate what they think the “reality” is
on a number of personal finance and broader ec...
3
We think
we’re
fairly
good at
this...
4
The public are
fairly
confident in
their own
financial
knowledge 2%
3%
8%
22%
28%
22%
14%
1
2
3
4
5
6
7
Very low
Very hi...
5
And We do
mostly get
the basic
maths of
discounting
right...
Base: Split sample 547 GB adults Source: Ipsos MORI/King's ...
6
But more of
us struggle
as the maths
gets harder...
Base: Split sample 545 GB adults Source: Ipsos MORI/King's College L...
7
we have a
good grasp
of the cost
of living – on
average... 5%
6%
7%
24%
20%
11%
6%
14%
3%
6%
0-19p
20-29p
30-39p
40-49p
...
8
...Still Better than some...
“I don’t know – about
80 pence? “I don’t know –
My wife buys most
of it”
Jim paice, when
Ag...
9
But we have a number
of misperceptions
that may prevent
people from making
good financial
decisions...
3 big life events...
10
10%
16%
15%
20%
13%
5%
8%
6%
7%
1...We massively
underestimate
the cost of
raising a child
Source: Ipsos MORI /King’s C...
11
Yet we
overestimate
the cost of
childcare
Q. On average, what do you think is the total cost
per week of 25 hours of nu...
12
A media effect?
13
2... and We’re
not much
better at
estimating
the costs of
university
education
Q. On average, with how much debt do you...
14
Q. On average, how long do you think that people
turning 65 in the UK can expect to live in retirement
before they die?...
15
Q. Assuming they were claiming a full state
pension, how much do you think that someone
would need to have in a private...
16
Q. Government research shows that a number of
people are not saving enough for retirement. What
percentage of working a...
17
This matters...
we know how much
social norms can
influence behaviour...
“pluralistic ignorance”
18
We do get some
things right...
19
Q. To the best of your knowledge, how much do you think
the average UK household owes in debt (to the nearest £1000)? T...
20
House prices... Q. To the nearest £1000, what do you think is the
average house price in the UK?
£
3%
5%
13%
34%
20%
16...
21
Perhaps in part because
of this...
22
...But we’re
very wrong
on the SCALE
OF deposits
OR EQUITY
Q. To the best of your knowledge, how much do you
think is t...
23
And we
underestimate
renting costs
both
outside
london...
Q. Outside of London, what do you think is the
monthly cost o...
24
And in the
capital...
Q. And what do you think is the monthly cost of
renting a home in London (to the nearest £50)?
18...
25
We’re very
accurate on
the average
full time
salary
before tax...
Q. To the best of your knowledge and to the
nearest £...
26
...But we
overestimate
how many of us
are very highly
paid
Q. What percentage of the UK population do you
think are lia...
27
...And THEN
also wrong
on what this
group
contributes...
Q. And what percentage of all the income tax
paid by the total...
28
...And when told
it’s only 1%...
Q. Around 1% of the UK population earn £150,000
or more each year. What percentage of ...
29
we also
overstate
how many of
us claim out
of work
benefits...
Q. At present out of every 100 people of working age, ho...
30
And think it’s
very similar
to 2000 –
when actually
it has
declined
Q. Fifteen years ago (the year 2000), out of every
...
31
Q. Which of the following do you think is the current
base interest rate of the Bank of England?
Half of us
know the
cu...
32
Q22. Over the past forty years – going back to
1975 – what do you think the average Bank of England
base interest rate ...
33
0
5
10
15
20
25
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
199...
34
Q. For the following statements please decide
whether you think they are true or false:
Despite being a
key political
i...
35
“We are paying down
britain’s debts...”
January 2013
But We
are not
the only
ones...
36
“The national debt is
lower in each of the
next few years...”
July 2015
And it’s only
getting
harder to
understand...
37
overall...
Financial
Knowledge or
Literacy
- Knowledge in the abstract
- e.g. knowing how inflation
works
Money
managem...
38
... And capability matters...
• …ISER study shows that for men the impact of low financial capability
on life satisfact...
39
Notes on the data
• Where an amount is asked, respondents were asked
to write in an exact value (unless specified)
– Th...
40
Data sources
• Mysupermarket.co.uk put the price of a pint of milk at 49p in Morrisons,
Waitrose, Asda and Tesco as of ...
41
Data sources
Retirement and pensions
• The average cohort life expectancy is 22.55 years. Figures based on ONS
historic...
42
Data sources
Retirement and pensions
• An estimated 43% of working age people are facing inadequate retirement
incomes ...
43
Data sources
Housing, debt and interest rates
• The average house price in the UK is £195,166 (latest figure for may
20...
44
Data sources
Income, taxation and benefits
• Average full-time salary before tax in the UK is £27,200. Data are from th...
45
Contacts: Name: Bobby Duffy
Email: bobby.duffy@ipsos.com
Telephone: 0207 347 3267
Name: Suzanne Hall
Email: suzanne.hal...
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On the Money: Misperceptions and Personal Finance

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New research by Ipsos MORI and King’s College London shows that the public have a number of significant misperceptions about personal and public finances. In particular, it’s the cost of the big life events – like having children, going to university and retiring – that we underestimate which has implications for the financial services industry and government alike, as well as the wellbeing of the general population.

Publicada em: Economia e finanças
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On the Money: Misperceptions and Personal Finance

  1. 1. 1
  2. 2. 2 The survey... • …asks people to estimate what they think the “reality” is on a number of personal finance and broader economic issues… – Builds on our joint programme of work exploring perception gaps on social policy issues – Purpose is to understand reasons for misperceptions, their impact and what can do to raise knowledge and get to better financial outcomes • Based on 1,100 interviews conducted online, 5-9 June 2015, weighted to population profile • Focus on results for the “average person” ie looking at median results…
  3. 3. 3 We think we’re fairly good at this...
  4. 4. 4 The public are fairly confident in their own financial knowledge 2% 3% 8% 22% 28% 22% 14% 1 2 3 4 5 6 7 Very low Very high Base: 1100 GB adults 16-75 Source: Ipsos MORI/King's College London Q. On a scale from 1 to 7, where 1 means very low and 7 means very high, how would you rate your own financial knowledge (by which we mean your understanding of issues affecting your own personal finances)?
  5. 5. 5 And We do mostly get the basic maths of discounting right... Base: Split sample 547 GB adults Source: Ipsos MORI/King's College London £5 0 0 Q. Suppose you saw the same television on sale at a discount in two different shops. The original price of the television is £500. One shop is offering a discount of £100 off the original price, the other is offering a discount of 10% off the original price. Which is the cheaper price - £100 off or 10% off? 91% 1% 7% 1% Don’t know The Same 10% off £100 off
  6. 6. 6 But more of us struggle as the maths gets harder... Base: Split sample 545 GB adults Source: Ipsos MORI/King's College London Q. Suppose you saw the same television on sale at a discount in two different shops. The original price of the television is £500. One shop is offering a discount of £80 off the original price, the other is offering a discount of 15% off the original price. Which is the cheaper price - £80 off or 15% off? 85% 5% 7% 4% £5 0 0 Don’t know The Same 15% off £80 off
  7. 7. 7 we have a good grasp of the cost of living – on average... 5% 6% 7% 24% 20% 11% 6% 14% 3% 6% 0-19p 20-29p 30-39p 40-49p 50-59p 60-69p 70-79p 80-89p 90-99p £1+ Base: 1100 GB adults 16-75 Source: Ipsos MORI/King's College London and mysupermarket.co.uk as of w/c 26th June 2015 ? ? ? ? ? £? ? Q. How much is a pint of milk? Actual cost: 49p Average guess: 50p Although many of us are way too high or low…
  8. 8. 8 ...Still Better than some... “I don’t know – about 80 pence? “I don’t know – My wife buys most of it” Jim paice, when Agriculture and food minister Boris Johnson ...I know the price of a bottle of champagne – how about that?”
  9. 9. 9 But we have a number of misperceptions that may prevent people from making good financial decisions... 3 big life events...
  10. 10. 10 10% 16% 15% 20% 13% 5% 8% 6% 7% 1...We massively underestimate the cost of raising a child Source: Ipsos MORI /King’s College London and LV= £ Base: 1100 GB adults 16-75 Up to £19,999 £20,000-£29,999 £30,000-£49,999 £50,000-£99,999 £100,000-£149,999 £150,000-£199,999 £200,000-£249,999 £250,000-£499,999 £500,000+ …if this were true we’d only be spending £2.60 a day on average… Q. On average, what do you think is the cost of raising a child in Great Britain from birth until they reach the age of 21 (to the nearest £1,000)? …parents worse at estimating: average guess only £40,000 Actual cost: £229,000 Average guess: £50,000
  11. 11. 11 Yet we overestimate the cost of childcare Q. On average, what do you think is the total cost per week of 25 hours of nursery care for a child under two years old in Great Britain (to the nearest 3% 7% 18% 13% 16% 14% 10% 2% 4% 1% 12% Base: 1100 GB adults 16-75 Up to £49 p/w £50 - £99 p/w £100 - £149 p/w £150 - £199 p/w £200 - £249 p/w £250 - £299 p/w £300 - £349 p/w £350 - £399 p/w £400 - £449 p/w £450 - £499 p/w £500+ Actual cost: £115pw Average guess: £200pw Source: Ipsos MORI/King's College London and Family and Childcare Trust 22% of Londoners think care costs over £500 a week in the UK – a reflection of the higher costs in the capital? £)?
  12. 12. 12 A media effect?
  13. 13. 13 2... and We’re not much better at estimating the costs of university education Q. On average, with how much debt do you think today’s student will leave university, including tuition fee loans (to the nearest £1,000)? 11% 21% 23% 19% 12% 6% 2% 6% Up to £9,999 £10,000 - £19,999 £20,000 - £29,000 £30,000 - £39,000 £40,000 - £49,000 £50,000 - £59,000 £60,000 - £69,000 £70,000+ Base: All in England (948) Source: Ipsos MORI/King's College London and the Institute of Fiscal Studies / the Sutton Trust Actual debt: £44,000 Average guess: £21,000 Young people slightly more realistic, but still underestimate: £30K
  14. 14. 14 Q. On average, how long do you think that people turning 65 in the UK can expect to live in retirement before they die? Actual figure: 23 yrs Ave guess: 19 yrs Good news! We live longer than we expect to... 5% 14% 24% 38% 10% 9% Up to 5 years 6-10 years 11-15 years 16-20 years 21-25 years 26 years+ Base: 1100 GB adults 16-75 Source: Ipsos MORI/King's College London and ONS
  15. 15. 15 Q. Assuming they were claiming a full state pension, how much do you think that someone would need to have in a private pension savings pot to get a total income of around £25,000 a year after they stopped work (to the nearest £1000)? 3... But we massively underestimate what we need to save for retirement 12% 10% 7% 10% 11% 11% 12% 6% 20% Up to £14,999 £15,000-£24,999 £25,000-£49,999 £50,000-£99,999 £100,000-£149,999 £150,000-£249,999 £250,000-£349,999 £350,000-£449,999 £450,000+ Source: Ipsos MORI/King's College London and This is Money pensions calculatorBase: 1100 GB adults 16-75 Actual figure: £315,000 Average guess: £124,000 Steep learning curve… 65+ year olds = £250k 50-64 year olds = £150k
  16. 16. 16 Q. Government research shows that a number of people are not saving enough for retirement. What percentage of working age people do you think are saving too little? Actual figure: 43% Average guess: 65% Despite this underestimate, we think undersaving is the ‘norm’... 3% 3% 6% 10% 13% 13% 16% 23% 9% 4% 0-10% 11-20% 21-30% 31- 40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100% Source: Ipsos MORI/King's College London and DWPBase: 1100 GB adults 16-75
  17. 17. 17 This matters... we know how much social norms can influence behaviour... “pluralistic ignorance”
  18. 18. 18 We do get some things right...
  19. 19. 19 Q. To the best of your knowledge, how much do you think the average UK household owes in debt (to the nearest £1000)? That is, the total money owed per UK household – including mortgages. 15% 13% 17% 17% 14% 8% 17% Up to £9,999 £10,000 - £19,999 £20,000 - £49,000 £50,000 - £99,000 £100,000 - £149,000 £150,000 - £199,000 £200,000 + Base: 1100 GB adults 16-75 Source: Ipsos MORI/King's College London and The Money Charity household debt... Actual figure: £55,000 Average guess: £50,000 Although some extreme guesses…
  20. 20. 20 House prices... Q. To the nearest £1000, what do you think is the average house price in the UK? £ 3% 5% 13% 34% 20% 16% 6% 3% Up to £49,999 £50,000- £99,999 £100,000 - £149,999 £150,000 - £199,999 £200,000 - £249,999 £250,000 - £299,999 £300,000 - £499,999 £500,000+ Actual cost: £195k Average guess: £190k Base: 1100 GB adults 16-75 Source: Ipsos MORI/King's College London and Nationwide 29% of Londoners think the average UK house price is over £300,000
  21. 21. 21 Perhaps in part because of this...
  22. 22. 22 ...But we’re very wrong on the SCALE OF deposits OR EQUITY Q. To the best of your knowledge, how much do you think is the average deposit to buy a house in Great Britain (to the nearest £1000)? That is, the up-front payment that the buyer puts down at the time of the purchase. 13% 33% 28% 12% 4% 5% 2% 4% Up to £9,999 £10,000 - £19,999 £20,000 - £29,000 £30,000 - £39,000 £40,000 - £49,000 £50,000 - £59,000 £60,000- £99,999 £100,000+ Actual figure: £72,000 Average guess: £20,000 Source: Ipsos MORI/King's College London and the Mortgage Advice BureauBase: 1100 GB adults 16-75 One in five young people think deposits are less than £10K
  23. 23. 23 And we underestimate renting costs both outside london... Q. Outside of London, what do you think is the monthly cost of renting a home in England and Wales (to the nearest £50)? 5% 2% 3% 12% 24% 19% 14% 10% 2% 9% Up to £199 £200 - £299 £300 - £399 £400 - £499 £500 - £599 £600 - £699 £700 - £799 £800 - £899 £900 - £999 £1,000+ Actual cost: £774 Average guess: £600 Source: Ipsos MORI/King's College London and LSL Property Services Plc Base: All those in England and Wales (1002).
  24. 24. 24 And in the capital... Q. And what do you think is the monthly cost of renting a home in London (to the nearest £50)? 18% 18% 22% 15% 16% 11% Up to £799 £800 - £999 £1,000 - £1,199 £1,200 - £1,499 £1,500 - £1,999 £2,000+ Actual cost: £1,204 Average guess: £1,000 Base: 1100 GB adults 16-75 Source: Ipsos MORI/King's College London and LSL Property Services plc Londoners themselves are almost spot on – average guess = £1,200
  25. 25. 25 We’re very accurate on the average full time salary before tax... Q. To the best of your knowledge and to the nearest £1000, what do you think is the average full- time annual salary before tax, in the UK today? 3% 5% 16% 25% 31% 8% 4% 3% 6% Up to £9,999 £10,000 - £14,999 £15,000 - £19,999 £20,000 - £24,999 £25,000 - £29,999 £30,000 - £34,999 £35,000 - £39,999 £40,000 - £44,999 £50,000+ Actual cost: £27,000 Average guess: £25,000 Base: 1100 GB adults 16-75 Source: Ipsos MORI/King's College London ONS
  26. 26. 26 ...But we overestimate how many of us are very highly paid Q. What percentage of the UK population do you think are liable to pay the top rate of income tax? That is, people who earn £150,000 or more each year? Actual figure: 1% Average guess: 10% 10% 6% 16% 23% 10% 11% 6% 18% Up to 2% 3-4% 5-6% 7-10% 11-15% 16-20% 21-25% 26%+ Base: 1100 GB adults 16-75 Source: Ipsos MORI/King's College London and ONS
  27. 27. 27 ...And THEN also wrong on what this group contributes... Q. And what percentage of all the income tax paid by the total population do you think this group that earns £150,000 or more each year contributes? 11% 16% 16% 17% 13% 12% 7% 8% 0-2% 3-5% 6-10% 11-20% 21-30% 31-40% 41-50% 51%+ Actual figure: 28% Average guess: 20% Source: Ipsos MORI/King's College London and ONSBase: Split sample - all those in half sample B (550).
  28. 28. 28 ...And when told it’s only 1%... Q. Around 1% of the UK population earn £150,000 or more each year. What percentage of all income tax paid by the total population do you think this group that earns more than £150,000 per year contribute? 18% 23% 18% 12% 9% 8% 6% 7% 0-2% 3-5% 6-10% 11-20% 21-30% 31-40% 41-50% 51%+ Base: Split sample - All those in half sample A (550). Source: Ipsos MORI/King's College London and ONS Actual figure: 28% Average guess: 10%
  29. 29. 29 we also overstate how many of us claim out of work benefits... Q. At present out of every 100 people of working age, how many do you think are claiming out of work benefits? By out of work benefits we mean benefits for people who are not in work because they are unemployed, disabled, carers or single parents. 31% 21% 15% 12% 7% 13% Up to 9 10 - 19 20 - 29 30 - 39 40 - 49 50 + Actual figure: 10 / 100 Average guess: 15 / 100 Base: 1100 GB adults 16-75 Source: Ipsos MORI/King's College London and ONS
  30. 30. 30 And think it’s very similar to 2000 – when actually it has declined Q. Fifteen years ago (the year 2000), out of every 100 people of working age, how many do you think were claiming out of work benefits then? 33% 26% 16% 9% 6% 9% Up to 9 10 - 19 20 - 29 30 - 39 40 - 49 50 + Actual figure: 13 / 100 Average guess: 15 / 100 Base: 1100 GB adults 16-75 Source: Ipsos MORI/King's College London and ONS
  31. 31. 31 Q. Which of the following do you think is the current base interest rate of the Bank of England? Half of us know the current base interest rate... 13% 49% 8% 8% 4% 1% 16% 0% 0.1% 0.5% 1% 2% 5% 10% Don’t know Prefer not to say Source: Ipsos MORI/King's College London and Bank of EnglandBase: Split sample - all those in half sample B (550). Actual figure: 0.5%
  32. 32. 32 Q22. Over the past forty years – going back to 1975 – what do you think the average Bank of England base interest rate has been over this time (to the nearest percent)? But we have got used to historically low rates... 16% 18% 13% 9% 17% 6% 5% 5% 11% Up to 1% 2% 3% 4% 5% 6% 7% 8% 9%+ Actual figure: 7% Average guess: 4 % Base: 1100 GB adults 16-75 Source: Ipsos MORI/King's College London and Bank of England40 YEARS
  33. 33. 33 0 5 10 15 20 25 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 low interest rates area relatively recent trend over the last 40 years Source: Bank of England Actual figure: 7% Average guess: 4 %
  34. 34. 34 Q. For the following statements please decide whether you think they are true or false: Despite being a key political issue – there is confusion about what has happened to the debt and deficit... Base: 1100 GB adults 16-75 Source: Ipsos MORI/King's College London FalseTrue 42% 28% 32% 47% 26% 25% FalseTrue Don’t know  = Correct answer   Only 1 in 5 get both questions right… Since the coalition government came to power in 2010, government debt has gone down Since the coalition government came to power in 2010, the deficit has decreased
  35. 35. 35 “We are paying down britain’s debts...” January 2013 But We are not the only ones...
  36. 36. 36 “The national debt is lower in each of the next few years...” July 2015 And it’s only getting harder to understand...
  37. 37. 37 overall... Financial Knowledge or Literacy - Knowledge in the abstract - e.g. knowing how inflation works Money management skills - Practical and cognitive - E.g. budgeting skills Opportunity - Contextual factors - e.g. having enough time/ “cognitive bandwith” Only really covered elements of literacy – capability also requires skills and opportunity…
  38. 38. 38 ... And capability matters... • …ISER study shows that for men the impact of low financial capability on life satisfaction is equivalent to being unemployed, for women the impact is closer to being divorced • This is a global issue – seen in other countries, over long-term… • …and becoming more important as more responsibility for financial decisions falls to individuals rather than employers/the state • Two approaches: i) raise knowledge through education/literacy training or ii) adapt interactions in a way that works with behavioural biases – need both • But also “Political Ignorance” implications: informing people sufficiently to hold government/others to account – a real challenge, but can learn from what we get right/wrong…
  39. 39. 39 Notes on the data • Where an amount is asked, respondents were asked to write in an exact value (unless specified) – The banding has been added at the analysis stage for ease of interpretation • Where responses do not sum to 100, this is due to rounding • Where specified, averages refer to the median value (that is, the response from the respondent in the middle of a ranked distribution). As the data includes some outliers, the median value was chosen over the mean as a representative of the centre of the data. Median values, unlike the mean, are unaffected by outlying measurements.
  40. 40. 40 Data sources • Mysupermarket.co.uk put the price of a pint of milk at 49p in Morrisons, Waitrose, Asda and Tesco as of 26th June 2015 Education and childcare • The average cost to raise a child to the age of 21 in Great Britain is £229,215 according to LV= Insurance company’s ‘Cost of a Child’ report. The data are compiled on its behalf by the Centre for Business and Economic Research: http://www.lv.com/upload/IFA-Rebrand- 2009/pdf/2015/jan/coac-report-final.pdf • The average cost for 25 hours of nursery care for a child under the age of two is £115.45 per week according to the 2015 Childcare Costs Survey conducted by the Family and Parenting Trust http://www.fct.bigmallet.co.uk/sites/default/files/files/Childcare_cost_survey_2015_ Final.pdf#overlay-context=annual-childcare-costs-surveys • On average, a student will leave University with £44,035 debt. Data are compiled and analysed by the Institute for Fiscal Studies on behalf of the Sutton Trust: http://www.suttontrust.com/researcharchive/payback-time/
  41. 41. 41 Data sources Retirement and pensions • The average cohort life expectancy is 22.55 years. Figures based on ONS historic and projected mortality rate figures http://www.ons.gov.uk/ons/rel/lifetables/historic-and-projected-data-from-the-period- and-cohort-life-tables/2012-based/stb-2012-based.html • Average pensioner income is £25,281. Data are sourced from the Pensioners Income Series (2012/13) published by DWP https://www.gov.uk/government/statistics/pensioners-incomes-series-2012-to-2013 • An individual would need £314,879 in their private pension pot. This calculation assumes that the individual will buy an annuity with their pension funds and that the rate for this is £6,000 for every £100,000 saved. It also assumes an individual claims the full state pension paid at the current rate (£6,145.35 a year). This would mean that their private pension fund would need to provide them with an income of £18,854 a year. Annuity rate of £6,000 per £100,00 sourced from the This is Money pensions calculator http://www.thisismoney.co.uk/money/pensions/article- 1633402/Pension-pot-calculator-How-need-save-retirement.html
  42. 42. 42 Data sources Retirement and pensions • An estimated 43% of working age people are facing inadequate retirement incomes according to DWP (August 2014 report): https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/223015/i nadequate_retirement_incomes_july2012.pdf • This is the latest estimate from DWP on the proportion undersaving. The analysis excludes certain groups in the working age population, including people aged under 22 and those with no earnings from 50 to State pension. • “Inadequate retirement income” is defined in terms of replacement rates. Replacement rates are defined as income in retirement expressed as a proportion of income before retirement. The UK Pensions Commission set out target replacement rates per income band in their 2004 report. Individuals who are estimated to have incomes in retirement below the Pensions Commission target replacement rates are said to have an “inadequate retirement income” or be “under savers”.
  43. 43. 43 Data sources Housing, debt and interest rates • The average house price in the UK is £195,166 (latest figure for may 2015). Data are drawn from Nationwide’s House Price Index • http://www.nationwide.co.uk/~/media/MainSite/documents/about/house-price- index/May_2015.pdf • Average deposit to buy a house is £72,302. Data are taken from the National Mortgage Index released by the Mortgage Advice Bureau: https://www.mortgageadvicebureau.com/news/Depositsreachpost-recessionhigh/1039/ • Average debt per UK household is £55,083. Data are sourced from The Money Charity’s The Money Statistics report (April 2015) http://themoneycharity.org.uk/media/April-2015-Money-Statistics.pdf • Average cost of renting a home in England and Wales (outside of London) is £774 and cost of renting a home in London is £1204. Data are taken from The Buy to Let Index from Your Move and Reed Rains (latest figures for April 2015) http://www.lslps.co.uk/documents/buy_to_let_index_apr15.pdf • Current and historic Bank of England base interest rates can be found on their website: http://www.bankofengland.co.uk/boeapps/iadb/repo.asp •
  44. 44. 44 Data sources Income, taxation and benefits • Average full-time salary before tax in the UK is £27,200. Data are from the latest provisional ONS statistics on hours and earnings http://www.ons.gov.uk/ons/rel/ashe/annual-survey-of-hours-and-earnings/2014- provisional-results/stb-ashe-statistical-bulletin-2014.html • Expected share of total income tax paid by the top 1% is estimated as 27.5% for the year 2014-15 by HMRC https://www.gov.uk/government/statistics/shares-of-total-income-before-and-after-tax- and-income-tax-for-percentile-groups • At present, 9 .8 in every 100 people of working age claim out of work benefits. In the year 2000, 13.1 in every 100 were claiming out of work benefits. Data are sourced from ONS Labour Market Statistics (table BEN01). http://www.ons.gov.uk/ons/publications/re-reference- tables.html?edition=tcm%3A77-363535 • Current and historic Bank of England base interest rates can be found on their website: http://www.bankofengland.co.uk/boeapps/iadb/repo.asp
  45. 45. 45 Contacts: Name: Bobby Duffy Email: bobby.duffy@ipsos.com Telephone: 0207 347 3267 Name: Suzanne Hall Email: suzanne.hall@ipsos.com Telephone: 0207 347 3166 Name: Hannah Shrimpton Email: hannah.shrimpton@ipsos.com Telephone: 0207 347 3006

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