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9 February 2012
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27 May 2010

The cost of going to work is 30% of salary says research

A new study has shown that a typical family can be paying 30%* of its disposable income on the costs associated with simply going to work.

High childcare and commuting costs, added to the extra costs involved with eating out for lunch and buying work clothes, can amount to £5,796 a year per worker the research shows.

Based on an average individual net income of £18,897, this means that almost a third of a person’s salary disappears before they even get to enjoy it.

It seems that this fact isn’t being lost on the estimated 681,000 people in the UK who mainly work at home and are able to largely avoid these costs.

The number of homeworkers has doubled in the last 30 years** and it seems the recession is fuelling this trend, with organisations such as the Direct Selling Association (DSA) reporting that its members saw a 17% rise in recruitment in 2009***.

Jamie Stewart, managing director of Kleeneze and a member of the DSA, says: “We have been able to grow by explaining to new recruits the many benefits of working from home, one of which is the financial saving that can be made by working from home.

“This is especially true for families trying to juggle childcare commitments who can often arrange their time to avoid expensive nursery fees, or for those facing long and expensive commutes to work.”

This was the experience of Shaun King (41) from Wem who gave up a full time job as a roofing contractor to become a distributor with Kleeneze, managing a catalogue sales business from home.

Shaun has found that working with Kleeneze has helped him to reduce his outgoings considerably at a difficult time for his family.

He said: "When my wife died suddenly in 2003, I found myself alone with two young daughters to raise. Although I continued to work at first, I found I was spending more of my time traveling to and from the work sites, with ever mounting fuel and child care costs.

“Now, with Kleeneze, I am able to fit my working hours around my family and have no need to travel further afield than my local area to work."

To find out more about becoming a Kleeneze distributor, call 0844 848 5000 or visit www.kleeneze.co.uk

Notes to editors

Calculations for working costs research (based on the example of a family living outside London with one child under the age of 2):

- Average salary per person after tax - £18,897.87 (source: Payscale 2010).

- Childcare cost - £3,816 (source: The Daycare Trust. Figure assumes cost shared between the salaries of two working parents).

- Commuting - £875 (Based on typical annual travel pass for major city outside London).

- Lunch - £780 (Assumes £3 allowance per day based on 260 working days a year).

- Clothes - £325 (Source Office of National Statistics, based on difference in expenditure on clothing and footwear between a working couple and retired couple.)


** Source: Labour Force Survey


*** Source: DSA survey 2010
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