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I just thought 80% seemed high.
But perhaps Sky TV subscriptions, latest iPhones on contracts, new car leases etc. are considered 'essentials' in today's society?
MattG87-
No, its not the case that people don't have much disposable income because of luxuries . Well, the Daily mail says it is but it's generally not founded in fact.
The average proportion of income spent on rent alone is between 30% and 40% depending on where you live. Not hard to see how travel, fuel, food etc can take it much higher.
I also don't think this is about "essentials". People will need to be able to service their consumer debt that they accrued before this crisis. There are literally millions (if not tens of millions) of people who have less than £100 in savings precisely because their cost of living is so close to their income.
Stonehedge
I don't know the figures but I suspect that a lot of people spend nearly 80% of their income just paying rent and essential bills.