Right, but when I say I don't see how anyone lives on less than £17k, I'm speaking of people in and around London.  As I said, £17k isn't bad in a city like Nottingham.  Let's assume two income earners and call it £35k, gross, for simplicity in 2006/7.  Deduct the personal allowance, which is, I think, about £5-6,000, and you get 20% on £30k.  So we're talking a bit under £30k in net income, right?

Not great, but not overwhelmingly terrible.  In Nottingham, that would probably get you a terraced house in a half-decent neighborhood between Lenton and the City Centre.  I don't have a great idea of what it gets you in London.  I know that a decent flatshare in the East End can be had for about £400/month, -- a fair bit of room, close to the Underground, etc -- but that's my only point of reference, since I've never lived there and haven't done much research on the city.  There may be stuff going for quite a bit less.

Be nice to America. Or we'll bring democracy to your country.