What do you consider "low income?"

[SistemaAddict]

People often talk about low income but I wonder if there is a set figure or if it's relative?
I would probably class as low income as I'm on UC but I don't consider myself poor like many might see me.
Just asking out of curiosity.

£16k

Below 25k

I’d say two adults with a child or two to support on minimum wage each would be hard but then you’d have CTC to top up right ? If you both did 40 hours a week ish that would be a household income of about £2,500 combined a month. If you take out costs of childcare rent and bills you don’t have much left over. Although it totally depends where you live. Here you could be paying £400 a month for a decent 2 bed, or you could be paying £1000 somewhere else for a one bed flat and sleeping in the living room.

Two adults earning 25k each in a low cost area of UK would be pretty well off IMO!

I think under £30K if you don't have a council house and under £20K if you do

@nanbread if you think about childcare though, you might be paying at bare minimum maybe £10 a day for one child to attend a before and after school club - that could be £400 a month per child !

If you have free childcare it’s different

I'd say under 20k

It doesn't depend on where you live - if your income is low, it's low. It's just that a low income will get you cheaper accommodation in some parts of the country (although other living costs are the same/higher than in London/SE). Just because one part of your outgoings is less doesn't mean your income is high!

Anyway, I'd say below £20k is low income, as minimum wage is about £16k.

@Wishforsnow what's the relevance of the council house?

It's interesting to read the replies.

Anything under the average, surely?

yougov.co.uk/topics/politics/articles-reports/2017/06/02/how-much-money-do-you-need-earn-year-be-rich

@Howaboutanewname I don't think the average is an accurate point tbh because it doesn't reflect the number of people earning above or below that amount. 50% of workers earn less than £21k so I'd take that as a starting point. I'd then reduce it by an (unscientifically chosen 🤣) amount as some of those will be on fairly high hourly rates but choosing to work part time for whatever reason usually because there's another source of income in the household eg partner, pension etc.

I was just thinking the rent on a council house would be around 700 and the same for a private rent would be 1500 in the south

Dickens - "Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

It's about living within your means. Although annual income of £20 a push these days

£2k monthly might be tight if you're renting and have several children, but the same amount if you're single and paid off mortgage could be really comfortable.

@ChilliCheese123 no, a household with two adults on minimum wage and one or two children don't get CTC (or, now, UC).

I'd say that anything under about 25k is low income.
An income is low irrespective of where you live in the country. It is what it is.

Surely it's about quality of life. The quality of life for a police officer and nurse in the North East will be very differwnt to the quality of life for a police officer and nurse in the South East. If they were in London nigh impossible but I do know a similar couple in NW London who inherited theor parents' house and live very well.

Too many variables to comment. Combined pensions of £30k in a small property with no rent or mortgage, a couple could live well. The same couple chosing to stay in their 4 bed detached with huge garden would live less well.

With no occ pension they may have 15k but again it depends on other outgoings.

Thanks Wishforsnow. I privately rent in the north west and pay £875. It's slightly below market value but seems such a lot compared to a mortgage but then not much at all compared to down south. I've no idea what council rents are like in comparison. I have £1200 left after rent. Just me and the three dc.

Quality of life is a separate question imo.

Is there not a Joseph rowantree foundation or something that works out this stuff? I’d google but my lunch is ready!

I'd say anything around 16k and that warranted benefits as a supplement.

Is say under 25 k is low income x

Not scientific at all but to me low income is just enough to scrape by, no extra for holidays/luxuries, have to be very careful with food budgets etc (MN chicken) and in a real pickle if something goes wrong eg car suddenly needs a repair, that would mean difficult choices such as which bills not to pay or having to live on beans and 15p instant noodles. No room to save , living hand to mouth etc.

Quality of life is a separate question imo

Absolutely. I have a low income by standards here. 3 children to support, no help from their father. But I have no mortgage. So my quality of life is way better than what my income would suggest.