To wonder what’s deemed middle income, low income, high income?

[Callmesadie]

I’ve read a few posts where people are talking about people on middle income struggling to pay the bills.

Can anyone advise what’s deemed middle income please?

This

see also “rich people should pay tax”, meaning anyone who earns more than I do

missed a word! Rich people should pay MORE tax

Tough one. I earn 60k plus commission my oh £86k both in our 50s in rented accommodation in very nice area, both WFH no kids.we are certainly not well off and couldn't afford a mortgage for example. The property we rent would be about 800k to buy according to Rightmove which is nearly £4ka month over 15 years. If we were 30 it would be a whole different story, you can't judge it on wages. Time of life and other things need to be factored in

How much benefits do you think a family on £35k with a mortgage and 2 children actually get?

I go off childcare support.

Low income - nursery funding from 2 years old. Free school meals for older kids.

Middle - entitled to tax free childcare

High - no tax free childcare

I'd say

Low 30k
Medium 30- 80k
High 80k+

We are around 60 (joint) so feel very much in the middle.

I agree with this, more or less. I barely know anyone who earns over £70k!

Swamp I don't wish to get personal but how on earth can you say that a couple (no DC) on £146k (plus commission) are 'certainly not well off'?? That comment is extremely tone deaf unless there are extremely extenuating circumstances that you haven't mentioned in your post.

If you both WFH why do need to live in an area where houses cost £800k?

Whether the majority fall between £250-£750 or not depends on the composition of the household. As you can see from the graph I have attached it looks significantly different for a household with 2 adults and 3 DC.

Thanks all. We are in Notts and our household income is £54k so I guess we are middle?

The top end of the middle section of the bell curve still isn't going to be any higher than £1,200 or £1,300 a month though, is it? So that's just under £70k for the top end of middle income.

It's not even close to £150k as was being claimed.

I earn £20k (work part time school hours)
hubby earns £50k working full time
mortgage is currently fixed until March at £1400 (basic 4 bed detached on a 1980s estate)
we live outside the m25 but in a commutable area around 50mins by train to London, neither of us work in London.
we don’t qualify for any benefits
we have 1 loan £250 ish (for the family car) and a second car, mine owned outright
we have 2 children at uni that only get the minimum student loan so we are supporting financially
we also have a child at primary school (hence my working hours)
we are just about living to our outgoings, I would say we are the squeezed middle
we are worried about the rising costs of energy, food and interest rates
hope this helps answer your question

Here is a good tool to find out where you sit (apologies if already posted): ifs.org.uk/tools_and_resources/where_do_you_fit_in

I’m on just over £100k, which even as a single person definitely puts me in the high income category.

I’d put up to £27k as low income, £27k to £70k as middle income and over £70k as high income. £70k as an individual puts you in the top 5%.

I do think there is an ultra high income. The top 1% and the top 0.1% are on such differential levels of wealth that it seems strange to classify a single salary of £70k as being in the same bracket.

Yes, above average, but still middle income.

Sorry should add hubby also pays £425 child maintenance for another child

I’m London and I’d say a low income is under 35k, middle income 35k-80k and high income over 80k

i just put my details into the calculator above and it came up almost exactly in the middle. However, and it’s a big but- we live in a cheap area and got lucky with house prices meaning we live in a house plenty big enough and pay £400 mortgage. We also have family around so almost zero childcare costs. We spend a fair amount of money having a bloody good time in all honesty. So I don’t think you can just go on income, housing costs will factor massively (the calculation only asked for council tax which I found strange??)

The top end of the middle section of the bell curve still isn't going to be any higher than £1,200 or £1,300 a month though, is it?

It is for a household of 2 adults and 3 DC. A monthly income of £1200-1300 for a household with 2 adults and 3 DC is well within the first decile even with a council tax of 0.

If you look at the graph I posted the fifth decile starts at ~£750 per week so significantly higher than £1200-1300 per month.

We have a household income of more than £70k but if we didn’t have savings would still be eligible for UC, so the government must recognise that given individual circumstances it isn’t a high income.

We have a household income of about £40,000. I would say that was middle based on the fact that we are not entitled to any benefits.

Whilst I appreciate that people often live to their means, and income doesn't equal wealth, I do think people who bring in £100k and claim to the squeezed middle need to get a grip and some perspective.

Those numbers at the bottom of the graph are per week. £1200-£1300 per week is the upper end of middle

This completely ^

Yes, I know the graph is per week. But you said per month when you posted “The top end of the middle section of the bell curve still isn't going to be any higher than £1,200 or £1,300 a month though, is it?” which isn’t correct.

Low £16k, middle £28k and high over £50k

You are both higher earners. You've made the choice to sacrifice disposable income for a high rent property. Completely different.

I earn 35K. Single, 3DC, rent now costs me just shy of 10K per year. But according to this, my “disposable” income of £671 means I’ve got more than 41% of the county. Only - over 1/3 of that “disposable” income goes on rent.

Ridiculous.