Britons are risk of paying a hefty “singles tax” of up to £10,400 a year if they are not in a relationship and living alone, according to new research.
While HM Revenue and Customs (HMRC) is not charging people for being lonely this Valentine’s Day, “singles tax” is the term used to describe the premium people pay for living by themselves and paying for all costs alone.
Research carried out by UK Debt Expert found that that people in the UK people are thousands of pounds worse-off by being single.
The debt experts analysed both regional living costs (rent and bills) and lifestyle costs; including the annual cost of a pet, wedding attendance, car insurance, streaming services, Christmas, holidays, and takeaways.
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Singles in the UK living with a pet are spending £10,402 more a year on average than their coupled counterparts, while those living without a pet spend £9,298 extra compared to couples living without a pet.
Average wages in the UK are currently £34,963 a year for full-time employees. This means singles are potentially losing 30 per cent of their annual salary if they are paying the national average singles tax.
The extra expenses singles have to pay for include an average council tax bill of £626 which has led to campaigners lobbying to hike the single person discount from 25 per cent to 50 per cent.
Furthermore, singles are likely to spend an additional £182 on broadband per year, with £1,500 being spent on basic utilities.
Maxine McCreadie, a personal finance expert at UK Debt Expert, broke down the plight of millions in the UK who have been saddled with extra costs.
She explained: “Many single people are renting, either as a stop-gap or because they can’t afford to buy a property on one income.
“But in a squeezed and precarious housing market, they’re now spending disproportionately more of their income on rent compared to couples, leaving them with little buffer to cover other essential costs as 30 per cent of their annual income could be lost to singles tax.
“This premium that singles are having to pay leaves far less disposable income for other costs, like dating, socialising, owning a pet or attending a wedding; parts of modern life no one should feel the need to miss because of costs.”
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A 'singles tax' is being charged on the incomes of single people
GETTYSingle Londoners were found to be the worst hit with the “singles tax” rising to £21,215 per year in the nation’s capital.
Living costs account for most of the levy with singles paying an additional £18,647 per year to live alone.
Ms McCreadie added: “With the cost of living crisis, falling into debt is increasingly the result of not being able to cover the basics, rather than splurging on luxuries; with singles facing an extra expense of £7,994 per year just for the essential costs of living alone, it’s easy to see how. Some are also burdened with joint debt from a previous relationship.
“If you’re struggling with the rising cost of living and everyday items, you’re not alone.”
Those struggling with their finances can contact Citizen Advice’s debt advice service for support and can check their benefit entitlement using the organisation’s calculator.
