Ash is a physiotherapist, earning 31,200 a year after deductions for tax, National Insurance and pension contributions. He is about to move into a flat with his partner Chris, who has a young child, Joe, aged 3. Chris is a paralegal and earns 21,500 a year after tax and National Insurance. She also receives 24.00 a week in child benefit. No-one described above has any other source of income.

2.1a Using the Household income equivalence calculator, calculate the annual equivalised net income of Ash and Chris's new household together.

2.1b With the aid of the same calculator, comment on how their individual living standards have changed compared to when they were living separately.

2.2 Draw up an average monthly cash flow statement using the expenditure information in Table2 for Ash and Chris in their new shared flat. When drawing up your table, please use the same type that is used in Week 9, Section 3.1, Activity 9.5.

Expense item	Amount ()	Period
Rent	1095	Month
Food	220	Week
Council tax	348	Month
Leisure	150	Week
Mobile contracts	100	Month
Internet and TV	120	Month
Credit card repayments	150	Month
Car loan	375	Month
Utility bills	1025	Quarter
Clothes	200	Month
Other	250	Month

2.3 Ash and Chris want to buy and install a hot tub in their garden, and they estimate they will need 800 for this. Comment on their current financial situation and consider potential adjustments they might make to their cash flow in order to save the 800.