In the UK being on the dole pays better than the average job

Posted: October 28, 2012 in Business / Money
Tags: ,

Question? Is it worth having a job in the UK?

Recently I was looking to decide between hiring people in the UK or outsourcing to another country. So I curious how much people get paid on benefits. So I put my details through the benefits check to see if I was unemployed how much I would be entitled to. Here is a screen shot of my results:

So I would be entitled to over £20K a year if I was on the dole. Holy crap! That took me back and I am a male, white, healthy, no dependents (i.e. A member of the least ‘worthy’ type of people in the world).

Okay now looking at what the average wage is in the UK:

Okay so lets say the average wage of someone working around 10 years in a job would be £30 K.

This is where the nasty bit kicks in, you do not get taxed on benefits.

So how much do you get taxed on £30k, here is the break down from worksmart tax calulator.

So now this mean the difference between working a job and being on the dole is £2,610.86 a year.

But wait there is more.

What about the costs involved with working?  Lets take traveling to and from work. This can vary massively depending on your journey but lets take car ownership for example. Car ownership cost on average £3000 a year.  Then lets say you need a couple of a suit a year and shirts and ties that would reasonable come to £800 a year. Now ignoring that you would probable need to spend more on food and drink. Lets say you spend £3500 extra on things necessary to do your job.

Now by working a job I would be taking home £889.14 less money then I would if I was on the dole.

And this is not at the beginning of your career, this is 10 years in!

And the real kicked is you need to work 2,085 hours and commute for around 600 hours for the privileged of  losing this money.

Now some of these stats may be off, this is my first time investigating. But you get my basic message, working in the UK is is a fool game, the smart people are on the dole.

Women no longer rate your career as a sexy thing, your far better off being a fun and interesting struggling artist, musician, writer, without the stress of your job on your shoulders. As a women  you get plenty of support from the government to help you raise your children, if you stay on the dole you can actually see them growing up.

And I as a employer, I can’t offer someone a entry level jobs which would a better deal for them then being on benefits. So it look like outsourcing is the best option.

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Comments
  1. Aaron says:

    This is incorrect, housing benefit is paid MONTHLY, not weekly, and also varies on the age, number of rooms, area (London will pay more than manchester) etc of the applicant.

    So if you take the £290 and divide by 4, it’s actually £72.50/week, and single males cannot claim income support and must claim Jobseekers Allowance, which is £67.50 for over 25s.

    So taking this into account, people on benefits, with no children (and assuming you’re over 25) per week you would receive 72.50 (housing benefit) + 67.50 (JSA) + 28 (Council tax benefit) which comes to approximately £168, which is less than a full time job.

    Then if you want to factor in children, EVERYONE can claim child benefit regardless of income, which is around £21/week for the first child and £17.50 for every subsequent child.

    Also many jobs which require you to travel a lot, and also which involve a lot of driving, usually offer to pay some or all of the costs of petrol and/or upkeep of the car if it’s a company car.

  2. TheAdmin says:

    Thanks for the extra details Aaron, but i’m still a little confused by the difference. As you can see in he screen shot I just going by the amount they told me.

    Also jobs that require a lot of driving i.e. Truck drivers, sales men, so on, i’m sure people get rebates for, but standardly your expected to pay for the travel to and from their place of work and this is what I have been using for my calculations.

  3. donna says:

    Fantastic report, and so very true, if you are working class you dont stand a chance of getting out or off the system, you need to have a very well paid job to make it worth while, sadly because the cost of living just keeps on going up and wages dont it makes you wonder whats the point ?

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