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 Income Payments Agreements, Income Payments Orders
 Income Payments Agreements
 IPAs - housekeeping allowance
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Starting Member

United Kingdom
13 Posts

Posted - 04 April 2009 :  20:55:27  Show Profile  Reply with Quote
My Trustee states that in calculating disposable income, the general guideline for monthly housekeeping, food and toiletries is £249 per couple and £67 per child per month. Is this right and where do these numbers come from?

I have done some research and the 1998 High Court decision in Re Rayatt states: "the question whether particular expenditure by the bankrupt [in this case on the education of a child] can be described as necessary to meet the reasonable domestic needs of the bankrupt or his family must depend on an examination of all the circumstances of the individual case."

The Insolvency Service leaflet on IPAs/IPOs supports this and also states that normally, you will have to use between 50% and 70% of your real disposable income every month for your IPA or IPO payments.

My expenditure on housekeeping for wife and 19 year old son, both dependents, is over three times the Trustee's figure,even after cutting down (eg no theatre/cinema, no newspapers,no holidays etc).

Can I reasonably argue with the Trustee?


Starting Member

40 Posts

Posted - 04 April 2009 :  21:02:48  Show Profile  Visit alisone's Homepage  Reply with Quote
I am sure I have seen postings where people have been allowed £400 per couple for housekeeping, Andrewski. I often wonder whether the area you live in has any bearing. Do they allow more if you live in London, for instance? I haven't had my OR interview yet but I've asked for £380 housekeeping for me and my daughter.

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Senior Member

1159 Posts

Posted - 05 April 2009 :  08:54:15  Show Profile  Reply with Quote
The 19 year old might not officially count as a depeendent perhaps?
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Average Member

511 Posts

Posted - 05 April 2009 :  10:52:43  Show Profile  Reply with Quote
no, he probably won't, we are 2 adults and 3 teenagers, we were allowed £545 per month for housekeeping (food, toileteries, etc) At the time of bankruptcy, our eldest daughter was 18, she is living at home but is at Uni, travelling in on the train every day. She got a grant which only just covers her books and train fares, (why are the trains so damn expensive) so we have to provide her food, clothes, haircuts and there is extra electricity, etc and the OR was not for allowing this as she was 18. I suppose the thinking is that the teenager should get a job too, but my daughter has a long-term medical condition and she can only just about manage her Law degree, never mind working as well.

We were allowed this sum in the end though
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Starting Member

United Kingdom
13 Posts

Posted - 05 April 2009 :  11:29:41  Show Profile  Reply with Quote
Thanks for the responses so far. I still do not know where the Trustee (or OR) get their numbers for housekeeping allowances from. Surely it must to an extent depend on where you live.
My 19 year old is away at Uni. He could not get a grant before I went BR due to my then income. Now he has to survive on a loan and pay tution fees, accommodation.books, food etc. We pay him an allowance of £50 per month and small amounts to cover food, travel from time to time.
It is difficult to compare exactly but it does seem Jane that your allowance was slightly more generous than £249 per couple.
I have not been able to find other examples of housekeeping allowances on this Forum as yet.

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United Kingdom
4590 Posts

Posted - 05 April 2009 :  11:35:43  Show Profile  Reply with Quote
If you read Skippy13's blog, that gives you a good idea of your allowances.

The glimmer gets brighter all the time

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Starting Member

40 Posts

Posted - 05 April 2009 :  18:43:13  Show Profile  Visit alisone's Homepage  Reply with Quote
I just did a quick search, Andrewski. Someone posted that they had only been allowed £276 as a couple for housekeeping and the reply was that the latest guideline amount for two adults was £394. (Don't know where the guidelines come from though). I think I have also seen that £250 housekeeping has been accepted for a single adult. Even taking regional variations into account, there seems to be a heck of a difference between what one OR will accept compared to another! Whereabouts in the UK are you?

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New Member

United Kingdom
60 Posts

Posted - 14 May 2009 :  20:21:50  Show Profile  Reply with Quote
The figures come from the National Statisics people and are based on the survey done a few years back. The official figure is £394 per couple.

This is from the Techical Manual

Don't forget this is an agreement and if you don't agree with it then don't sign it and fight, the OR may decide to take it to court, before the Judge but the Judge will look at it independantly and look at what is fair and 9 tomes out of 10 will agree with the bankcruptee. Due to the cost of going to court the OR tends to become more resonable if you know your rights.
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