Cost of living · Fictional household · England · 2026/27

Social renting with two children: what is left each month?

Dan & Tracey (38 & 36 · children aged 8 & 12 · social rent). In this example £4,223 comes in each month and £2,675 goes on housing, bills and debts, leaving £1,548. A fictional household, built from 2026/27 rules and stated assumptions.

Evidence last reviewed 29 October 2026

Illustration of a fictional household, not a photograph of real people.

38 & 36 · children aged 8 & 12 · social rent

Meet Dan & Tracey

Two incomes, four people—and a rent that leaves some breathing room.

Dan earns £40,000 a year and Tracey earns £20,000. Their children are eight and twelve. They arrange work around school, so this example has no paid childcare. Their £600 social rent makes a material difference to the family budget.

A month in pounds

Dan & Tracey: a month, in pounds

England · 2026/27 rules · fictional household · every line is listed below

Left each month

£1,548

Still to cover leisure, holidays, emergencies and any saving.

Money coming in

Dan · take-home pay£40,000/year gross; modelled tax, NI and workplace pension deducted: £2,581
Tracey · take-home pay£20,000/year gross; modelled tax, NI and workplace pension deducted: £1,447
Child Benefit · two childrenPublished 2026/27 rates; assumed claimed; no high-income charge in this example: £195
Total: £4,223

Housing and bills

Social rentScenario assumption: −£600
Food & household shoppingScenario assumption: −£620
Energy & waterScenario assumption: −£210
Council taxScenario assumption: −£180
TransportScenario assumption: −£400
Phones & broadbandScenario assumption: −£80
Children, clothes & clubsScenario assumption: −£250
Insurance & other essentialsScenario assumption: −£110
Total: −£2,450

Debt repayments

Car finance · family carScenario assumption: −£190
Buy now, pay later · school uniformsScenario assumption: −£35
Total: −£225

What would change it

Their remaining cash still has to cover birthdays, holidays, emergencies and saving. A positive balance for four people is not the same living standard as that balance for one.

Compare with Marcus & Helen: paying a mortgage →

What Budget 2026 could mean for them

These are announcements with dates and conditions, not money already in the budget above. None of them is added to Dan & Tracey’s month.

Household Energy Payment
£100 off council tax from January 2027 if their home is in bands A to D.
As announced: Household Energy Payment: £100 council tax rebate for bands A-D from January 2027. Who it covers: Payment: households in England in council tax bands A–D, up to 20 million of them; the devolved governments receive a Barnett share and decide its use. VAT cut: domestic electricity across the UK..
The measure Is it happening?
Support for Energy Bills
No VAT on electricity from October 2026 to July 2027.
As announced: Support for Energy Bills: Cut VAT on domestic electricity from 5% to 0% from 1 October 2026 to 1 July 2027. Who it covers: Payment: households in England in council tax bands A–D, up to 20 million of them; the devolved governments receive a Barnett share and decide its use. VAT cut: domestic electricity across the UK..
The measure Is it happening?
Fuel Duty
The 5p fuel duty cut stays until July 2027.
As announced: Fuel Duty: Extend the temporary 5p-per-litre duty cut and defer the planned Retail Prices Index (RPI) increase to 1 July 2027.
The measure

The Treasury’s average, shown separately

The Treasury estimates households in income group 4 of 10 (1 is the lowest) gain about £53 a year on average from Budget decisions (2027-28), counting tax, benefits and public services. That is an average for households with a similar income and make-up, not Dan & Tracey’s own gain, so it is not added to their month.

Budget 2026 explained · Budget tracker

Assumptions, workings and sources

Assumptions. The £600 rent is illustrative, not a national social-rent average. No paid childcare or disability additions. Debts: assumed car finance and a buy-now-pay-later plan for school uniforms.

Benefits and support. Child Benefit for two children is included at the published 2026/27 rates; neither parent earns over £60,000, so no High Income Child Benefit Charge applies. Universal Credit and other means-tested support are not included, and whether the household could get any has not been assessed. Amounts are before any such support.

What is official and what is assumed. Pay after tax, National Insurance, workplace pension, student loans and benefit rates follow the 2026/27 rules for England (official statistic, checked 2026-10-29). Every line marked “Scenario assumption” is an amount chosen for this example. Dan & Tracey are not typical of any group, and one example cannot show how a whole group is doing.

The workings, to the penny

A month, 2026/27. Yearly amounts ÷ 12; weekly rates × 52 ÷ 12. Money going out is shown with a minus sign.
Line	Exact amount
Dan · take-home pay	£2,580.77
Tracey · take-home pay	£1,447.43
Child Benefit · two children	£194.78
Total coming in	£4,222.98
Social rent	−£600.00
Food & household shopping	−£620.00
Energy & water	−£210.00
Council tax	−£180.00
Transport	−£400.00
Phones & broadband	−£80.00
Children, clothes & clubs	−£250.00
Insurance & other essentials	−£110.00
Car finance · family car	−£190.00
Buy now, pay later · school uniforms	−£35.00
Total going out	−£2,675.00
Left each month	£1,547.98

Sources

Who they are