INTRODUCTION
It is important to complete the full budget as accurately as possible because it will help you see:
- What money you have coming in
- What money you need to pay your essential bills and
- What money you have left over to pay your debts
MONTHLY BUDGET
The budget asks for monthly figures. If any of your income or outgoings are paid weekly, fortnightly or four-weekly, you will need to change them to monthly figures. Making sure that all your figures are monthly will help you to create an accurate budget.
Please see below for assistance with any of the sections in the budget sheet.
SECTION A
Number of adults in the household
This should include all of the following:
- Yourself
- Non-dependants
- Other dependants
Dependent children
A dependent child lives with you and is either pre-school or in full-time education. These can either be under 16 years of age or aged 16 to 18.
Other dependants
This is someone who is not a child but who is financially dependent on you. For example, an adult who is out of work and is not entitled to claim any benefits.
Non-dependants
Non-dependants are adults who live with you but who can support themselves financially. For example, a grown-up child who is working or a lodger who pays to rent a room.
Total number in the household
This includes everyone in the household: you, your partner, any dependent children, other dependants and non-dependants.
SECTION B
Income/Earnings (You and your partners take-home pay)
Include normal take-home pay. This means your wages and salary after deductions for tax, National Insurance, pension contributions, and anything else taken from your wages. Only include overtime payments if you receive these on a regular basis. If you are having money deducted from your wages to pay a debt, get advice about completing this section.
Other earnings
If you are self-employed, include the income that you take from your business. This should be based on what the business can afford to pay you after you have put aside your ongoing tax and National Insurance contributions. Business Debtline has a business budget tool that can help you calculate this. Go to www.businessdebtline.org or call 0800 197 6026* for advice.
Benefits and tax credits
This should include any of the following:
- Universal Credit
- Jobseekers Allowance (income-based)
- Jobseekers Allowance (contribution-based)
- Income Support
- Working Tax Credit
- Child Tax Credit
- Child Benefit
- Employment and Support Allowance or Statutory Sick Pay (if you get Incapacity Benefit, include it)
- Disability Benefits (include disability living allowance, Attendance allowance and personal independence payment. Make sure you include any related costs under the Adult care costs and Transport and travel sections later on)
- Carer’s Allowance
- Housing Benefit/Local Housing Allowance (include your housing benefit/local housing allowance as income here. Put your full rent amount in the Your monthly outgoings – fixed costs later on)
- Council Tax Support or help with your rates in Northern Ireland
- Other benefits and tax credits (such as maternity benefits)
Pensions
This should include any of the following:
- State Pension
- Private or works pensions
- Pension Credit (there are two parts to Pension Credit: Guaranteed Credit and Savings Credit. You may get one or both of these credits)
- Other pension income
Other Types of Income
This should include any of the following:
- Maintenance or child support
- Borders or lodgers
- Non-dependants’ contributions (include contributions from other adults who live with you and can support themselves financially, such as grown-up children and elderly relatives. Check that they are paying enough towards the household expenses and remember to include any extra housekeeping costs for them later on)
- Student loan and grants
- Other income
SECTION C
Expenditure
Mortgage/Rent
Rent – Show your full rent payment here. Include any Housing Benefit or Local Housing Allowance you receive in the earlier Your monthly income section.
Mortgage – Include your full mortgage payments here. If you have Support for Mortgage interest paid directly to your mortgage lender, only include what is left for you to pay on your mortgage.
Second Mortgage/Secured Loan
Check all your loan agreements to see if they are ‘unsecured’ or ‘secured’ on your home. If they are secured loans, treat them as fixed outgoings because lenders can ask the court for possession of your home if you do not pay your monthly instalments.
Ground Rent/Service Charges
Factor fees if you live in Scotland.
Life Insurance/Endowment
If you have an interest-only mortgage, you may also pay towards a mortgage endowment policy. The policy pays off some, or all, of the money that would still be owed when your mortgage ends.
Council Tax
If you live in Scotland, unless you have a water meter, your council tax will also include your water charges.
TV Licence/Rental/Other HP
Include payments for any goods that you rent, or have bought on hire purchase or conditional sale. This may be for domestic appliances or furniture. Do not include payments for a vehicle as they are included in the Transport and Travel section later on.
Gas
If you are on a regular payment plan for your gas, include the usual amount you are paying. If not, work out an average of your monthly costs.
Electricity
If you are on a regular payment plan for your electricity, include the usual amount you are paying. If not, work out an average of your monthly costs.
Other (coal, oil, calor gas)
Do not include costs for phones, internet or TV packages in this section. These are included in Communications and Leisure later on.
Water (supply & waste)
Depending on where you live, you may receive separate bills for your water supply and water waste. If you live in Scotland, unless you have a water meter, your water bill will be included in your council tax.
Care & Health Costs
This should include any of the following:
- Childcare costs – this might include fees for a childminder or nursery. Do not add the cost of after-school clubs here as they are listed under the School costs section later on. If you have extra costs because your child is ill or disabled, put them here.
- Adult care costs – Include any extra costs you have if you, or your partner, are ill or disabled.
- Child maintenance or child support – This is maintenance that you, or your partner, pay someone else. Include voluntary payments, any payments ordered by the court, the Child Support Agency (CSA) or the Child Maintenance Service (CMS).
- Prescriptions and medicines
- Dentistry and opticians – Don’t forget the cost of dental treatment, glasses and sight tests for the whole household.
- Other care and health costs
Transport &Travel
This should include any of the following:
- Public transport (for work, school and shopping)
- Hire-purchase or conditional-sale vehicle – include payments for any vehicle you are buying on hire purchase, personal contract purchase or conditional sale, as well as any vehicle that you hire on a regular basis.
- Car Insurance
- Road Tax
- MOT and ongoing maintenance
- Breakdown cover
- Fuel, parking and toll road charges
- Other transport and travel costs (including taxis) – You may have other vehicle costs that you have not listed, such as for taxis, lifts from friends and family, bicycles or motorcycles. You could have extra costs because of a disability or living in a rural area.
School Costs
This should include any of the following:
- School uniform
- After-school clubs and school trips
- Other school costs – If you have other school costs not already listed include them here. Do not add the costs of school meals as these are listed under the Food and housekeeping section later on.
Pensions & Insurances
This should include any of the following:
- Pension payments – only include what you actually pay into your pension yourself. Do not include any payments that have already been taken out of your wages by your employer.
- Life insurance
- Mortgage payment protection insurance – This covers your mortgage repayments for a fixed time if you are sick, had an accident or have been made redundant
- Buildings and contents insurance
- Health insurance (medical, accident or dental)
- Other pension and insurance costs
Professional Costs (union fees)
This should include any of the following:
- Professional courses – These are payment for courses that you must attend to keep your job or profession.
- Union fees
- Professional fees
- Other professional costs – include any other compulsory payments you have to make in your job or profession.
- Other essential costs – Magistrates’ court or sheriff court fines. If you have been ordered to pay a magistrates’ court or sheriff court fine by instalments and have not missed a payment. If payments are being taken from a salary or benefits, get advice about completing this section.
Communication & Leisure
This should include any of the following:
- Home phone, internet, TV package (including film subscriptions)
- Mobile phone – include all the mobile phone costs you have to pay for in the household.
- Hobbies, leisure or sport (such as socialising, eating out, outings, clubs and leisure courses)
- Gifts (such as birthdays, festivals, charity donations)
- Pocket money
- Newspapers, magazines, stationery and postage
- Other communication and leisure costs
Food/housekeeping to include toiletries & cleaning
This should include any of the following:
- Groceries (including food, pet food, non-alcoholic drinks and cleaning products)
- Nappies and baby items
- School meals and meals at work
- Laundry and dry cleaning
- Alcohol – if you need to cut back on your spending, this is an area that you might look at.
- Smoking products – if you need to cut back on your spending, this is an area that you might look at.
- Vet bills and pet insurance
- House repairs and maintenance – include routine house repairs, repairs to washing machines, maintenance contracts and so on.
- Other food and housekeeping costs
Personal Costs
This should include any of the following:
- Clothing and footwear – the amount you spend will depend on your circumstances. Include any costs for school uniforms in the earlier School costs section.
- Hairdressing
- Toiletries
- Other personal costs
*For call charges contact your service provider