To wonder what a ‘good wage’ is?

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Not really an AIBU but something I’ve been pondering on, and posting here for traffic and opinions.

I often see people mentioning that someone earns ‘a good wage’ or indeed a high wage, but what that means in practice is clearly dependent on many factors, not least the area someone lives in but also their dependents.

I work in an industry where I talk to people on very high wages all the time about their jobs, which I think skews my view of what’s normal. I was involved in a discussion in another forum recently where it was mentioned the average salary at the moment is £27,000. Of course this is a mean average, skewed by a few very high salaries, and most people are below that. But many people were commenting that they didn’t know anyone who earned that much and had never earned anywhere near that themselves.

I’ve also been fascinated by this calculator from the Institute of Fiscal Studies that shows where households fall in the stratification of the country www.ifs.org.uk/wheredoyoufitin/
I think a lot of people would be surprised by it. When DP and I each earned the average salary (no kids) we were still in the top 25/30% ish of households which seems mad, and we live in an expensive area.

I’m wondering - what do you think a ‘good wage’ is, and at one point does something become a high wage?

I think it’s right that almost everyone pays some tax rather than relying on the top earners to fund everything.
Everybody DOES PAY TAX
Just not everybody pays Income Tax
www.ifs.org.uk/uploads/images/election2017_images/bns/bn198_fig2.jpg
18% of all government income is in the form of VAT
more than double the take from Corporation Tax
and even the poorest person pays VAT

Lower income people pay a higher percentage of their income in tax too...

I'm pretty sure some major changes re: dividends have just come in this year in the UK.

VAT is a really unfair tax. Like the poll tax it charges everyone the same regardless of income. It should be abolished or lowered substantially and recouped thru fairer income tax rates.

I would rather I pay more tax and people on low incomes pay less.

Anybody resentful of lower-rate tax payers should redirect their anger towards corporations who cheat us out of billions of pounds.

When I was 15, I considered £30,000 to be a good wage, that's always the wage I wanted to aim for at least. I guess now I'd say £40,000 with higher cost of living but I'm not likely to ever earn that.

I'm in London, earn less than £30,000 but have no kids, no car, haven't been on holiday for years (hoping that will change this year) and my outgoings are generally low. I manage fine. Obviously I'm in shared accommodation and can't afford a mortgage but in day to day living, I'm very comfortable. I'm also very lucky to have a lot of savings.

I would support a 33.3% income tax/NI combined rate for all once over the single person allowance (rather than current 32% tax/NI) for all with 33.3% corporation tax (not 19%) and with 33.35% capital gains tax (not 10% - 28%) but with inflation indexation. This would help generational fairness so that those few pensioners who have such high pension income they currently pay 40% tax have a tax rise and middle earners particularly in London with expensive rents and full time childcare costs pay a bit less.

Not much chance of that however. The Government loves to make tax more and more complicated every year.

What we can all be sure of whatever we or husbands earn it will never quite feel enough.

VAT is a really unfair tax. Like the poll tax it charges everyone the same regardless of income. It should be abolished or lowered substantially and recouped thru fairer income tax rates.
Except that VAT is the most efficient tax to collect
hence why the only rich country not to have it (the USA) has the most insane tax system of the lot.

VAT is not charged on essentials and is really easy to target.
Also, because it is used within the supply chain, its a really efficient way to extract money from businesses before they fiddle their CT bills.

Yes, VAT is chargable on those well known luxuries like sanitary protection and gas and electricity, albeit at a reduced rate.

Also VAT in another name by way of insurance premium tax, which has been quietly raised by quite a bit in the last few years.

IPT is not VAT : that is a Tory stealth tax.

It will be interesting to see if the Government abolish VAT after Brexit - as its an EU tak

Yes, that's the least the Government can give us 'we aren't allowed to abolish VAT on sanitary protection due to the EU'.

Come the day after Brexit goes through, they need to do a new budget, pass a law or whatever it takes, as there will be no reason to keep it any longer.

Surely it’s about how savvy you are and how much disposable income you have

I live in the south east and earn 12k the idea of ever earning 60k seems impossible I see 25k as a decent wage but that be due to my circumstances. I'm looking to start full time now I'm a single mum and won't earn more than 16k a year in my current job. When I was with my ex we were on 27k between us.

16k is a fairly average wage where I live for most admin type jobs, I think retail jobs probably pay similar, I am part time admin and would earn 21k if I was full time and that is considered a good wage for that type of job

Barbara
Come the day after Brexit goes through, they need to do a new budget, pass a law or whatever it takes, as there will be no reason to keep it any longer.
If they abolish VAT, where will the government get 18% of its revenue form
other than a whole orchard of magic money trees

Income Tax is 25% VAT is 18% of revenue
So to replace VAT, income tax will need to nearly double
is that what you want ?

goldenworld why can't you aspire to £40k? What exactly is stopping you?

You can aspire all you want, finding someone to pay you 40k in a part of the country where most people are earning 15k or less is a different matter entirely.

why can't you aspire to £40k? What exactly is stopping you?
How many Nursery staff
and teaching assistants
and retail staff
have a chance of earning £40k
bearing in mind that its more than 3/4 of workers earn.

why can't you aspire to £40k? What exactly is stopping you?
That's a good one. 😂😂 You make it sound like getting a much higher salary is simply a matter of wanting it.
That would be nice.

If you want £40k you have to aspire to run the nursery or move into teaching. What about all the retail workers who become store managers and area managers.

If you don't aspire to it you can't really be unhappy if you never get it. I've been told time and time again by admin staff that they want to be managers or move up the slippery pole. Will they read in a bit, take on a project that means they might have to work 3/4 hr late for a week? Have even had the offer of sponsorship to move towards prof quals turned down. It doesn't just come on a plate sadly

RaindropsAndSparkles I've worked in many a job where I've put in the extra hours, ideas (stolen by others) and have been loyal and held to good standard.

Never have I got near to a promotion. Cos I is a bloody forenner, innit

" What about all the retail workers who become store managers and area managers."

They're a small minority aren't they, and always in competition with the ones who go straight into those jobs.

"I've been told time and time again by admin staff that they want to be managers or move up the slippery pole. Will they read in a bit, take on a project that means they might have to work 3/4 hr late for a week? Have even had the offer of sponsorship to move towards prof quals turned down."

In the sectors I've worked in, this just isn't possible. I've worked much more than 3/4 of an hour late and paid for my own additional degree and post grad diploma, but if you don't have a certain background to begin with, it's not possible. What sector do you work in that this is possible?

"I think no one under 20k should pay tax (what's the point when you would need loads back in top ups). "

Please bear in mind that childless working people on a low wage do not get top ups. A single, childless person on 15k doesn't qualify for any help.

My DH took a gap year and worked in a shop. He never went to uni and often does wish he had, but he is one of the few who has done quite well. He is a store manager and earns £34k plus bonus, not many people with degrees do his line of work to be honest, if they do they soon disappear off up the ladder that there are stepping stone roles available again. It's just hard because retail structures are not embellished with a lot of management roles anymore so it's slower to go up. His role is a good fit and he likes it, so his earning potential is probably unlikely to change a lot. I went to uni and have just got a promotion (changing org) so I'll be on £40k in a couple of months. My earning potential is far greater but for where we are (Suffolk) I'd say we earn good salaries. Everyone in our village thought we were 'very young' when we moved in. There are lots of old workers cottages (think two up two down) and ours is twice the size. We lived with parents to save and neither of us smoke/drink so are very frugal. Lots of the households are single people so i don't think we are genuinely that much wealthier if you split us, it is just because we are together.

It is very difficult for some people particularly with few qualifications to get on at times but it does depend on the part of the country. It is rarely because they are foreign as perhaps was implied above. London is full of "foreigners" many of whom do very well.

It is always interesting hearing other people's experiences. I would say never give up (if you genuinely want to move to a higher salary. you might need physically to move for that however to areas where pay is higher and not everyone wants or can move).

I think VAT is too high. Nearer 10% might be better but there is no chance of it being reduced as it raises a lot of revenue and neither political party is too keen on slashing costs at present when there is so much pressure for the state to spend a lot more on schools, the NHS and old age care.