Mortgages and Housing Crisis

We have a lot of high profile talk at the moment about the #housingcrisis and a lot of amazing people trying to solve the issue of high private rents – encouraging the building of more affordable homes to enable people to work, and enjoy a decent standard of living, without being cripled by rising living costs and stagnant archaic wages.

And so I ask – why are we not making it possible for everybody to enjoy home ownership?  It shoud be based on affordability – or rather what it being paid out in rent, rather than measured by deposit and credit score.  When you have had a difficult financial past the sentence on your credit file is greater than committing a serious crime against another person.

When one suffers adverse credit is it assumed that they do not manage their money well or they are workshy, when that is not the case – the issue is the cost of living v income – I ask any politician or top 10% earner to live on an income on minimum or living wage and pay private rents and be penalised for having to pay everything else monthly too (higher car insurance, higher utilities etc), and to have to pay water rates instead of water usage because they cannot have a meter because they are tenants.  I was paying £80 a month instead of £18 a month (on-line calculated usage) – so the Water Company boss enjoyed a 21million bonus whilst I had to eat bread.

But this is about mortgages – yes there is always a risk but when a mortage company has so much to gain they should be more liable with the risk for the gain – and why is this so important?

I wrote to the Gov about it (as you do) and asked the question – and they responded that it ‘wasn’t in their interest’ to push mortgage companies to offer mortgages without despoit or good credit score – of course it isn’t.  If you build housing you have a guaranteed income for generation after generation of people who are locked out of homebuying.

When you are a tenant you are unable to enjoy a private life, i.e. pets, landscaping, decorating, even hanging pictures on the wall, and more importantly you will pay rent to the day you die.  You will be worried about that months rent as you draw your last breath.  With home ownership you pay for 25/30 years and than you have your own estate, for your children to enjoy, so that they too are not trapped in private rental, social rental or any other rental that pays to the private estate of another or the estate of the Crown.  Granted your estate goes back to the Crown too if you don’t get your will sorted properly but at least home ownership gives you freedom to a private life and light at the end of the tunnel, so that even if you buy when you’re 40 you have the chance of relaxing a little at 65.  Those in rental will not relax at 65, nor 75, nor 85, nor 95.  So of course it’s not in the inerest of the government to make mortages available to all, they want the income for generation after generation.

The simple matter of a deposit, and credit score locks people out of a decent life, for generations.  These people pay somewhere between £600 and £1200 on private rent every month, just because that person could buy a buy to let.   It is not about being workshy, these are hardworking people who could be paying LESS on a mortage, and have light at the end of the tunnel, and, enjoy a private life and give stability to their children.  Who without stability may need to turn to HB.

I’m so ashamed sometimes of how this country works, or doesn’t work, for those less priviledged with security.

I am not anti affordable housing – I am very pro affordable housing – people need to be able to afford to live and if wages aren’t going to double overnight then housing is crucial, but also mortages would go a long way to solving this crisis and moving half of society out of private rented accomodation which absolutely capitalises at the expense of those less fortunate.  Let’s get both sorted please.

 

Update October 2019 – I have recently learned of a £25K Grant available to landlord to help them bring empty properties up to standard to rent out.  Surely that grant could go to people desperate to get on the housing ladder rather than those set to profit at the expense of those in adversity…

Employees are Vulnerable. It’s time to step up.

I have been laying awake at night of late thinking about how a significant proportion of society are living in relative poverty, and those of you who are familiar with my blogging will know that I don’t look for things to blog about, I have very little choice in the matter, I lose sleep and the universe will not permit me to sleep again until I say what needs to be said.

Yesterday, Oxfam (via Twitter) very kindly signposted me to their hard work on tackling UK poverty (amongst other things), and perfectly quoted:

‘When a company does not ensure a living wage is paid, the most vulnerable people in its supply chain suffer as a result. This is unfair and unsustainable.’

Source: https://policy-practice.oxfam.org.uk/our-work/inequality/towards-a-living-wage

Now I do realise that living wage is better than minimum wage and I understand why people are taking baby steps, but then baby steps have not been taken in every other area of inflation and it is time we caught up.  Even living wage is not enough to enable people to live their lives every week, month, year, without worrying about meeting the rent or mortgage, and without being penalised by the banks or utility or insurance companies for having to pay monthly.  You will see my earlier blogs on penalised for being poor and inflation.  There is no quality of life for most people, just look at them in the supermarket, their spirit is dead and they cannot pick anything up without worrying if they can afford to include it in that week’s shop.

I came across this Guardian US tweet the other day, and whilst it is in the US it is absolutely bang on the nail for the issues faced in this country by public and private sector employees.

Please watch it here:  http://singlemumsbusinessnetwork.co.uk/useful-links/4594561112

Many company bosses will convince themselves that they are paying their staff a fair wage, mainly by comparing it with other similar salaries for similar roles, but do you remember your mum saying this ?’If somebody told you to jump in front of a bus would you do it?, no, use your own brain.

Employers must take a greater responsibility for ensuring that none of their employees are stressed about money, especially when it is as a direct result of them putting profits before people. The onus in on employers at the Gov are failing epically to look after their people, they are so out of touch that they are incapable of leading properly, and if you are waiting for them to force you to pay a higher wage then you are failing epically too.  I caught a glimpse of the Martin Lewis Money Show where MP James Brokenshire seemed to be quite chuffed with announcing the minimum wage has increased to £8.21.  (Parliament’s expenses watchdog confirmed the salary for MPs will rise from £77,379 to £79,468 from April 1. It contrasts with welfare benefits remaining frozen for a fourth year in row.  Ministers like Mr Brokenshire get a second salary on top) Now I’m sure he’s a nice enough chap, but ignorance is a very real downside humanity, you cannot lead what you do not understand, just as you cannot teach what you have not learned.

https://twitter.com/SMBN33422746/status/1113337409696149506

I am not interested in excuses.  Please do not pay your vulnerable staff a wage and then pay yourself significantly more, plus a significant bonus (and they really are vulnerable.  The thought of rocking the boat at work fills most people with fear of further poverty or hostility) .  Plus panic buy office equipment at year end to keep profits down and the tax bill low.  It happens everywhere.  You can not tell how much your staff are struggling by looking at them, but I guarantee that anything less than £10 is too little and this has to rapidly increase to £15 or £20 (support staff).

You may ask where this money will come from – if you do, please back it up with your accounts and personal expenditure v what difference the payrise would make to your bonus.  As for public sector pay.  We would all pay more tax, and there would be significantly less need for help, so this swings in roundabouts.

Employees are vulnerable.  Look after them like you would look after your own family, after all, they are helping you run your company.

I think that’s enough to let me sleep..

Although final note, I appreciate the process of working your way up the ladder, but the bottom of the ladder should not be in the gutter, as it currently is.  The only excuse for living wage is supported young / trainee people learning a trade, for a very limited period of time.

I also do not proof read my blogs, I am a passion blogger and I must press send before I read.  So apologies if typos offend you!

Jules x

 

 

 

Single Mums Business Network

I’ve been busy! See my other blog site www.singlemumsbusinessnetwork.com Slide3

I’ll still post blogs on here about all things that rattle my cage but the SMBN is taking over for now! Caring & Sharing X

Work /Life Balance – Make it Happen

As I was walking my dog in the woods this morning, protecting her from a bird of prey and taking in the beauty of the autumn leaves (I know it’s not autumn) and watching the squirrels enjoy their natural habitat I was acutely aware of how happy I am to have the flexible work /life balance that I have created.

Whilst I was enjoying my dog walk, Outlook was sending summary e-mails to my clients that I had scheduled at 11pm to send at 9:30a.m. Facebook was posting pre-scheduled posts and my washing machine was washing my clothes!  How easy we have it these days compared to our elders.

When I became a mum – all I really wanted was a secure, well paid, engaging role to keep me busy 30 hours a week whilst my daughter was in school allowing me to occasionally swap lunch for parent assembly or sports day.  The reality of how difficult this was/is forced me into a battle of creating self-employment and asserting myself non aggressively with availability.  I fought to sustain my business and utilise my skills wherever possible to help that happen.

This week I have been extremely busy with networking in my capacity as freelance BDM, seeing clients at KIH Holistics, having conference calls in my capacity as freelance assistant in Civil Litigation, planning to attend an exhibition for the KIH Bed, studying and dotting the i’s and crossing the t’s.

My point is that people don’t mind if you control your diary, often we are too keen to please and consequently we compromise our own wellbeing.  My clients do not mind that I am unavailable between 3pm and 7pm.  They are happy with a conference call at 2pm or 9pm.  I am happy to prepare summary e-mails at 11pm and schedule them to send at 9:30 a.m.  My BDM clients do not mind that I am only available to network for them during school hours.  What matters is that I am committed to helping them and I do what I do well.  Sometimes we fear reactions too much.

As a mum I have 30 hours in the week that I can manage my workload and 21 hours in the evening that I can prepare my workload.  I attend every parent assembly and I pick my daughter and drop her off.  I look pretty rough and it would be easy for other parents to assume I do not work, but that does not concern me, what concerns me is that I can do homework with my daughter, cook tea for her, bathe her, read her a story and accompany her to groups.

*You do have to fight for work /life balance.  It doesn’t knock on your door, you need to actively contact people and don’t be shy about your availability and fee.  I ran a Facebook campaign to find the flexible legal experience.  I targeted solicitors and such like within an hour of my home, and it paid off.  You have to make it happen.  With every 100 no’s follows a yes (ish).

*Whilst we are still fighting for work/life balance due to this stiff British mindset there are some fantastic companies out there leading the way with part-time or flexible employment that does not insult the brain or pocket, and these companies are game changers, leaders not followers, they recognise the importance of being able to juggle what matters to you without this affecting your professional output.

Don’t give up, it can take years to get the balance right and the correct fulfilling work, you just need to be honest with yourself if something is getting you down and keep looking for work that fulfils you, pays you correctly, and does not make you feel like a bum for wanting to be a ‘full-time’ mum.

Note I schedule late night emails to send in the morning as it can be very stressful to receive work e-mails in the evening, we should be free to relax unless we ‘choose’ not to, that is the difference between scheduling and email and actually sending it.  We are primitively wired to be on high alert as the day becomes night and so fight or flight response is much more likely if an email stresses us out in the evening.  Send serious (or possibly invasive) emails in the day when people are better placed to receive them.

Caring & Sharing

 

 

 

 

Working for Poverty & Self-Employment

‘It doesn’t pay to work’.  This is something I have heard for many years and the words have caused me great discomfort.  It is often perceived that living on benefits is a comfy lifestyle option, and with great analysis I have reached my own conclusion, which of course I am sharing as we all know I love to put the world to rights, as I see it.

My working life began age 14.  I was working as a waitress for £2.50 an hour.  An eight and a half hour working day bought me in £21.25p.  You will see an image below to evidence this (I had no idea why I had kept this for nearly 30 years until now.  I just trusted that I needed to!).  The wage slip is from when I had just turned 15, and it was before I was issued an NI number.  The minimum wage today, 27 years later is £3.70 for an apprentice, and £4.20 for school leaving age.  Source Acas

You can start to see where I am going with this, but at this point I recommend getting a coffee, as I have much to say on the matter!

When you look at inflation of property, food, living costs, fuel, taxes, and everything else, nothing compares, nothing at all (sorry Sinead).  It is beyond diabolical and completely unforgivable.  You will know if you follow my blogs that I do not do stats, I am quite simply too lazy, but here are some links for you to read A Telegraph article from ‘last week’ on how prices have changed over 30 years and A Sunlife article from 2016 on house prices The Telegraph article is great to read, I love seeing that the collective consciousness is on the same page with this.  You will see that there is evidence of a 500% house price increase.  That would suggest to me that the intern should now be on a minimum wage of £12.50 an hour, and the minimum wage should be more like £20 an hour (at least).  You may think that is completely unreasonable but unfortunately that is society following suit.  Employers are all following government guidelines and consequently are getting away with it, enjoying huge profits and fat top line salaries at the expense of their employees.  CIPD have recently published a report which again, is music to my ears about employee wellbeing with respect to financial strain, I am passionate about employee wellbeing and this report supports that low pay causes stress.  Read it here

Now I appreciate that the government are making some attempts to address ‘equal pay’ and I am pleased to see that the government plan to introduce CEO / Employee pay gap reporting see People Management article written by Dawn Lewis but I fear the workers on the ground are still left living in poverty whilst the government are too afraid to tackle the real issue – that is a ridiculously low minimum / living wage.  It is modern day slavery at it’s very best, and most concealed.

Employers are kidding themselves that the wages they are paying are acceptable, and that it is okay for their staff to live in poverty whilst they enjoy living in the top 10%.  Please! What is wrong with us? How is this acceptable? How has this happened?  Who calculates the living wage? Shame on you.  Is this a presumption that two people share the bills? A very historic assumption.  Is this genuine ignorance of today’s living costs? An average minimum of £1k per month on rent and bills (outside of London), for a single person.  With a minimum wage of £7.83 for age 25 and over, your average ‘hard-working’ adult, working a 40 hour week (9-5 – Man Made Manslaughter – see my earlier blog post) is bringing in £1357 before deductions, so take home pay is on average around £1,100 on a good month.  There simply is not enough money to cover outgoings, food and travel costs and so people are living on credit and in a desperate cycle to break free from the poverty.

It is clear that many are shouting out about this issue, but it is not being properly addressed, and certainly not quick enough, this needs to change and it needs to change very very quickly.  That brings me to talk about why people are choosing the ‘option’ of entrepreneurism, why we have so many new small businesses. I use the word ‘option’ very loosely, as actually I believe this to be a desperate measure to escape the trap that is our current work culture.  Now I have already highlighted my earlier 9-5 blog above, this is not new news – Dolly Parton sang about it in 1980!  Listen to the words!

What we have is a ‘desperate’ situation, now I really do not believe that anybody ‘wants’ to live on benefits.  It is the most degrading, humiliating situation to be in and one aspect of this was beautifully depicted in the recent movie I Daniel Blake.  I could personally relate to some of the scenes in this movie.  As a proud working woman who barely took a day off in 20 years, to then suddenly go from being a home-owner career girl to a single mum in receipt of benefits was such a shock.  I had no idea what tax credits were in my early 30’s, and the brief six months I turned to Income Support following the end of my maternity leave were soul destroying.  Now whilst I was very grateful that my daughter wasn’t torn from my arms as it was for my grandparents generation, to be sanctioned for borrowing £20 from my mum and not declaring it and having my bank statements scrutinised like some sort or criminal is something I will never forget.  To lose the freedom of your own income and to have people look at you like you are sponging scum despite 20 years contributions is something I do not believe anybody would choose.  My point?

Well my point is that it does not pay to work when wages are as low as benefits.  Living on benefits is seriously tight, it is living in poverty and there is no money for luxuries, and so it ‘does’ pay to work, for the sense of wellbeing it gives you and the opportunity to increase that income, but the income is rarely increased, only freedom is lost, childcare costs are added from 3pm if you are a parent and transport costs and of course the holiday period.  So many people are turning to being self-employed and turning into entrepreneurs because it is a desperate measure.  A desperate measure to escape the 9-5 and to have the chance to earn more than £10 an hour.  (which is still too low!).  All of these problems are man-made (or as somebody pointed out to me the other day ‘person-made – sorry – to PC for me, again we are allowing ourselves to be sheep trained).  We are human beings and we need to stop greed at the top.  We need fair pay, and fair hours.  With better pay, working in school hours can be a ‘choice’ living without luxuries can be a ‘choice’, a choice to pick up your children and give-up take-outs.

I appreciate that certain professions offer a good wage, and there are brilliant opportunities to re-train to work in a higher paid job, and there will always be a difference in income, but the difference is too grand.  The bottom line should not be poverty.  Top 10% and bottom 10% is not a fair way to divide the hard workers in this country.  I still hear people complain that ‘anybody’ can go to university now, these people are oblivious to their own privileges.  Everybody deserves the chance to be the very best they can be.

Wellbeing will seriously increase when these changes are made.  NHS costs will decrease, road accidents will decrease, ill health will decrease, crime will reduce (yes, much crime is fuelled by anger and need for money) .  Benefit claimants will decrease.  If you cannot see that I urge you to dig deep.  I have recently discovered the Joseph Rowntree Foundation – this tag links to an article entitled ‘Almost a quarter of people in Wales are trapped in poverty’.  When I see the articles and hard work of the JRF, and Shelter, and such charities I wonder, why isn’t anything changing? It is so obvious.  Pay is too low.  Pay is too low.  Come-on Government, look, the pay is too low.  You have been chosen to govern the country to look after society, and look what is happening under your power, on your watch.   You can change this.  Not in 20 years, not in 10.  Right now.  Don’t worry about ‘where the money will come from’ worry about where money will be saved.  For a start people will not need to top up their wages with HB or TC,  NHS will save money on drugs (a much bigger outlay than wages), and people will want to work if they can pick up their kids and be paid a wage in line with inflation.

I have another beef.  the lottery, I have mentioned it before.  If you think that people are gambling responsibly you are deluded.  Most people are gambling out of sheer desperation to escape poverty.  The government are getting greedy.  People are being tricked into funding lottery funded projects because they are desperate to win some money.  Now I know that the lottery supports some really good causes, but you ask people if they would donate to these causes if there wasn’t a chance to win, probably not – not because they are selfish, or don’t care, but because they are living in poverty and cannot afford to support other causes.  It is all too greedy.  When it was £1 a week that was a reasonable amount for people to gamble, that was ‘responsible’, but now it is most nights, £2.50 per go sometimes, people have the same numbers they are afraid of missing and consequently are paying at least £50 per month – that they cannot afford out of their income, because they are desperate.  You have allowed this to happen Gov.  not feeling very proud right now.

I conclude.  People are not really lazy, they want to work, working can be fun, being around people is healthy, having a steady wage is lovely, but entrepreneurism seems to be the only hope at the moment to escape poverty and achieve work-life balance, but hope is what it is, again the stats speak for themselves that this is not an easy option, it is a desperate option, because the wages are not properly governed.

As a country we have a collective responsibility to make some significant changes, and this must be addressed by our government, who we trust and nominate to take care of our wellbeing as a society.  Workers will not challenge the wage offered to them, how can they? They will fear losing the job altogether, and where we accept this income we make a rod for our own backs, but what choice do we have when we are powerless to do anything about it?  We need to make the change happen higher up the ladder, we need protection, help, support, we need to be looked after as members of society, we are happy to work, but unless the house prices are going to decrease 400% and bills equally, the wage needs to inflate, and it’s the job of the country’s leaders to make that happen.

I would like to make a few additional points:

Rich House Poor House is a lovely documentary that sensitively highlights the wage divide.  Please watch it whatever your status.

Can’t pay we’ll take it away – I’m not offering a link this one.  It disgusts me how we are filming people at their lowest, these people are in genuine despair and it is being used as entertainment.  We are behaving like animals not helping them.  If you think they choose not to pay you are ignorant, for that you can be forgiven, but you need to understand the reality by watching Rich House Poor House.

If you are looking at setting up a business but are in poverty charities such as Fredericks Foundation may be able to help you.

It is not okay to spend a lifetime renting.  A mortgage would only last 20-40 years.  When you rent you never get that light at the end of the tunnel and never lose that overhead.   See my earlier rental blog here

Empty properties need filling.  Flats should be a lifestyle choice or stop gap in your twenties whilst having enough disposable income to save.

I firmly believe that there would be a lot less hatred for immigration if people weren’t living in poverty and feeling threatened and equally obesity would decline if people had the finances and the time to eat properly and be more active.

There are so many fundamental errors with our way of thinking, our system, we cannot rely on the lottery to bail us out, we have a collective responsibility to make things change, if you are struggling you need to shout louder, and if you are a wealthy employer you need to ask if a portion of your wealth is blood money?  And if you are justifying it because you are a sheep?

Sharing with love not hate, as always.

I apologise for typos, it’s late and I’m not reading this long blog before I post it! Feel free to point out spelling & grammar and I’ll tweak later!   Ta.

Pay Slip 1991