To ask what mumsnetters think is a low income

[Pimmsoclocknow]

Totally inspired by another thread, but what do you think is a low income. - for a individual and for a family of four

In SW and both in professional jobs so may be skewed but definitely average here

Yes, that ifs website has said that I am better off than 96% of the population.

Not sure why it doesn't take rent/mortgage into consideration as well as Council Tax. That would be a better indication, IMO.

The where you fit in is always a shock to people.

Remember that pensioners are often on very low incomes, although majority don't have any housing costs, or childcare costs.

Rent and mortgage are within your control
AND
dependent on how long you have lived in your home

also, it treats everybody equally so its still accurate

Rent and mortgage are within your control

To an extent.

And TalkinPeace I calculate 66%. It asks for net income, not gross

fairy nuff : still well above average

I am really,really shocked! Assumed our family net income would be below average at best.... I am sahm and dh earns 36k. Imagined that to be fairly standard as most incomes below that would usually get topped up by various benefits like tax credits etc?

We get £23.500 pa. There's only 3 of us and we struggle! We live in North Yorkshire.

Better of than 96%?! And we have just saved enough to buy our first house... Which will be a 3 bedroom probably. That thing is sure not true.

I think it depends alot on out goings including rent/mortgage/childcare. Rent/mortgage I do not think are greatly within your control. What would be a struggle if there was a mortgage/rent to pay would not be too bad if you are owner occupied with no rent/mortgage.

redling
The IFS are a well respected body who use Government statistics.

MN posters do not realise that they are deeply un representative of the population at large

iggly
outgoings are controlled by income
if your income is below the median you will not have had a mortgage in the last ten years

TalkinPeace I don't live in some kind of weird MN vacuum! I lived most my life in a North East ex mining town where most people would be seen as having very low incomes. I now live in the South East, but my point is that my life genuinely is not much different to friends and family at home, same kind of holidays, same kind of social lives, I live in a rented 2 bed terrace house. So it baffles me that we'd be in such a position. We do however pump a massive amount of income into savings to buy a house, and up until 2 years ago DIDNT have a lot of money. So this is probably a blip based on a good patch at DH work! I don't live like someone who is apparently that wealthy so that's why I find it bizarre.

You have chosen to spend and save your income
so you do not feel wealthy
but most of the country is not in a position to save

That calculator is bullshit. It calculated we were amongst the richest 1% of the population. I can assure you that is not accurate.

It's a 20% difference ...
We certainly don't feel wealthy either

It depends on how much your essential outgoings are though.
If you rent or have a recent mortgage your costs are likely to be higher than somebody who lives on min wage but bought 30 years ago.
So I don't think you can fairly suggest a figure as there are so many variables.
Personally for our family we would be skint on less than 15k, but our outgoings are probably half that of many on here.

Fabulous
Why do you think your income does not make you in the top few %
do you and or your DH pay higher rate tax?
or top rate tax?

Essential outgoings
what people consider to be essential grows with their income

Here are the Government figures by the way
www.gov.uk/government/uploads/system/uploads/attachment_data/file/276204/table3-1a.pdf

well it's due to a work situation that won't last so I'm glad we're saving as its not a forever income but still, I think its strange and genuinely don't understand. Other factors must make a difference. I'm not being a dick! We don't even have a car!

Less than 15% of tax payers pay 40% tax. And there are lots and lots and lots of people don't pay any tax

Talkinpeace. If you are eg a pensioner with no mortgage/rent/childare and your income is X amount I would say that that income can go further than someone renting and paying childcare. So income X for eg a pensioner I would think is reasonable to live on. If there is someone with 3 children and high rental then that same income X could be one I would consider low income-ie this is what I feel is in answer to the original OP. The same income I could think of as both medium/low/high due to different circumstances and particularly different locations/countries. Outgoings are not necessarily fully controlled by income (hence debt).

"If your income is below the median you will not have had a mortgage in the last ten years" what if you were ill/maternity leave ....

For an individual I would say under £25k

For a family of 4 I would say under £30ishk

I did that how rich are you thing and DH and I also fell about laughing and how high it said we were compared to how skint we are. I think it put us in the top 90 something percent. We were grumbling about putting the gas on tonight and had omlette for dinner as it's cheap. If that is top 90% I don't know what to think tbh