Agreed IVA Expenses Amounts – 2023 Guide

Agreed IVA Expenses Amounts – 2023 Guide

This article provides a guide to the amounts you can include in your IVA expenses budget. Using the figures will help you create a realistic budget and understand what you will have to pay into your IVA.

Included in this article:

Want help to start an IVA?

Give us a call: 0800 011 4712 or complete the form below to speak to one of our experts

The agreed monthly IVA expenses amounts

There are many different types of expenses which you need to consider when completing your living expenses budget. The categories and figures listed below are a good guide to the amounts you will be allowed.

Priority Expenses

These include your rent or mortgage, Council Tax, utility bills and childcare or maintenance payments if you have them. There are no pre-agreed guide lines for these items. When creating your budget you can refer to your bank statement or agreements and simply include the figures you pay.

Food Shopping  / Housekeeping – Maximum

Single Person: £220
Couple: £350
Each additional Child: £90
Pet food: Variable depending on animal(s)

Note: The figure you write down in this category should include what you spend on toiletries and cleaning products.

Meals at Work – Maximum

Single Person: £40
Couple: £80 (given both working full time)

Sports, Hobbies & Entertainment – Maximum

Single Person: £30
Couple: £50
Each additional Child: £15

Clothing (not including school Uniform) – Maximum

Single Person: £30
Couple: £50
Each additional Child: £20

Dental & Opticians Checks – Maximum

Single Person: £20
Couple: £30
Each additional Child: £0 (Free on NHS)

Note: Additional medicines and prescriptions can be added on top of these amounts

Hairdressing – Maximum

Single Person: £15
Couple: £25
Each additional Child: £5

Child Specific Expenses – Maximum

School Trips: £10/child
Pocket Money: £10/child
Uniform: £17/child
School Lunches: £40/child

TV & Internet – Maximum

TV License Fee: £13
Household: £80

Mobile Phone – Maximum

Single Person: £35
Couple: £70
Each additional Child: £10

Transport and Travel – Maximum

Car fuel (per vehicle): £195
Car maintenance & MOT (per vehicle): £35
Public Transport: Variable depending on personal journeys

Emergencies – Maximum

Single Person: £20
Couple: £40
Each additional Child: £10

Other Expenditures – Maximum

Dry Cleaning: £10/person
Newspapers: £10/person

It is important to remember, the amounts are not guaranteed. Your creditors may accept different amounts (either up or down) depending on specific nature of your circumstances.

Struggling to get your head round all of this? We can help. Give us a call (0800 011 4712) or complete the form at the bottom of this page. The advice is free and confidential.

What to do if you need to spend more?

The allowances highlighted above are meant for guidance purposes only. They are indicated as maximum amounts. However this may not always be the case.

You may have special circumstances where you need to legitimately spend more than suggested above. For example a medical condition may mean your housekeeping expenses are higher. Alternatively you may need to drive a long way to work every day. This could mean your petrol costs are higher.

Where this is the case, you should include the realistic amounts. But do expect to be asked to justified and prove these.

You will normally need to pay at least £100/mth into an IVA. If this is not available after all your living expenses are taken into account, you may need to cut back or consider a different solution.

Can your IVA expenses figures be rejected?

When completing your IVA expenses budget, start with figures you believe you need to spend and are suitable for you and your family’s circumstances. However, expect that some of these may have to be changed.

We can review the figures with you and advise as to whether they will be acceptable to your creditors or not. If we feel the amounts are too high, they could be changed or you may have to be ready to reduce them later.

The budget will be reviewed by your creditors. They want to make sure you are making your best effort to repay as much of your debt as you can. If they feel the amounts you have included are too high, they may demand a reduction and associated increase to your proposed payment before they accept the agreement.

An IVA can be rejected because the expenses budget is too low as well as too high. You need to ensure you have enough to live off before starting the agreement.

Want to discuss your IVA expenses budget? Give us a call (0800 011 4712) or complete the form at the bottom of this page. The advice is free and confidential.

Related Articles

4 thoughts on “Agreed IVA Expenses Amounts – 2023 Guide

    BenH says:

    Hi, for the Iva expenses amounts guidelines, please could you clarify something for me. Given that an Iva is for an individual, there are different amounts for a single person and a couple? I am married with a child. Does this mean my allowances would be the couple amount? Thank you

      Hi BenH

      You are correct that an IVA is an individual debt solution. However, when you are calculating your surplus income (the amount you pay into the agreement) you need to do a household income and expenses budget.

      In other words, you have to include all the income of the household (both from you and your partner) and all the living expenses. This would include the allowances for a couple plus your 1 child.

      You then calculate the household surplus income. This figure is then split (pro rata) between you and your partner to calculate the amount you need to pay.

      You can read more about this by clicking on the following link: How to work out your IVA monthly payment

    BenH says:

    Thanks for the response, just th clarify, when adding up my wife’s income and expenses to calculate her disposable income. Are her debts included? She isn’t planning an Iva but she does have a a few loans and and couple credit cards. So is the disposable income calculated after his payments for these are taking into account? If that makes sense? As with mine I’m guessing these aren’t included as I will have a new amount for my debts in the form of the Iva payment. Sorry if this isn’t clear it’s very new to me.
    Thank you

      Hi BenH

      No. You cant include your wife’s debt payments in the income and expenses budget. Her payments would have to come out of her share of the surplus income. If she is not left with sufficient to do this then she also needs to consider a debt solution.

      This is a complex area that needs to be got right. As such, before proceeding with and IVA, I would advice you call me and I would be happy to discuss it with you (0800 011 4712).

Leave a Reply

Your email address will not be published. Required fields are marked *