Gordon is a health care assistant living in Belfast, earning 20,000 a year after deductions for tax, National Insurance and pension contributions. He is about to move into a flat with his boyfriend Dale, who has a 15-year-old child, Isla. Dale is a chef and earns 18,500 a year after tax and National Insurance. He also receives 21.15 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 Gordon and Dales 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 Table 2 for Gordon and Dale in their new shared flat.

Table 2 Expenses in new flat

Expense item	Amount ()	Period
Rent	1100	month
Food	120	week
Council tax	220	quarter
Leisure	200	week
Phone	60	month
Transport	280	month
Credit card repayments	160	month
Utility bills	380	quarter
Clothes	50	month
Other	130	month

2.3 Gordon and Dale want to save up to get Isla an electric motorbike when she turns 16, and they estimate they will need 2,000. Comment on their current financial situation and consider potential adjustments they might make to their cash flow in order to save the 2,000.