The trigger figures
Trigger figures represent pre-agreed levels for certain areas of household expenditure. They cover expenditure for telephone, travel, housekeeping and other costs. They identify reasonable levels of monthly expenditure when completing the common financial statement.
They are calculated from research by the government’s Living Costs and Food Survey, which takes information from a random sample of lower-income UK households provided by the Office for National Statistics.
1 It collects information about spending patterns and living costs to reflect household budgets across the UK. Trigger figures are updated annually and published in April.
Trigger figures change depending on household sizes, for each additional adult or child in a household the trigger figure will increase.
Trigger figures provide a guideline maximum figure for expenditure but not a minimum. The basic principle is that spending should be accepted as reasonable if it is within the relevant trigger figure amount. Spending above the trigger figure may be reasonable depending on the clients’ circumstances. An explanation of these circumstances should be included with the financial statement if expenditure is above a trigger figure.
The CFS collects information on a client’s income, expenditure and debts, which can be presented to creditors to show that repayments are sustainable.
Information entered in the CFS must be verified to ensure it is accurate. For some expenses, trigger figures are used to measure if expenditure is at a reasonable level. If expenditure levels are higher than trigger figures, an explanation must be provided, along with the financial statement when it is sent to creditors.