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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

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

109 replies

Callmesadie · 25/10/2022 20:06

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?

OP posts:
StarfishBrain · 25/10/2022 23:31

Jerabilis · 25/10/2022 21:26

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.

All totally meaningless without considering expenses though.

Where do you live? What does housing cost?

Is this a household income? If so, then either two people earn it between them so pay far less tax, and have two people to juggle childcare. Or one earns it all and there's another person at home doing childcare? Both a very different prospect to a single parent with the same household income paying far more tax than the first couple, and higher childcare fees. Or childcare fees as much as a mortgage or more on top of what the second couple pay out.

Utterly meaningless to look at income without expenses.

StarfishBrain · 25/10/2022 23:32

Jerabilis · 25/10/2022 21:26

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.

Not just strange. Nonsensical.

nootsy · 25/10/2022 23:32

Only 5% of the population earn over 80k - that's the high bar imo.

Isn't that just PAYE figs though?

nootsy · 25/10/2022 23:37

Household income is becoming meaningless due to the disparity in property prices.

yep

StarfishBrain · 25/10/2022 23:49

nootsy · 25/10/2022 23:37

Household income is becoming meaningless due to the disparity in property prices.

yep

Yes. And the makeup of said households. One person has 24 hours oer day to do work/ childcare. Two people have 48. Which means much higher costs for the first person.

Add to that living in an expensive area, and well...

Looking at the pre-tax salary and thinking that indicates financial position without considering expenses is just silly.

StarfishBrain · 25/10/2022 23:50

nootsy · 25/10/2022 23:32

Only 5% of the population earn over 80k - that's the high bar imo.

Isn't that just PAYE figs though?

Yes. Doesn't include all the businesses aying mostly in dividends, or people doing off the books work for cash, etc.

StarfishBrain · 26/10/2022 00:02

DazzlePaintedBattlePants · 25/10/2022 21:57

Agree with a PP who said income is increasingly meaningless and it’s housing costs that are determining whether you’re squeezed or not.

I was blown away with the recent threads where posters said their social housing rent was around £100/week for family sized homes, and that there were benefits that contributed towards that. I didn’t realise social rents were so affordable - I think it’s great for them, but a bit shit for everyone else who’s earning considerably more, usually by putting in considerably more effort and stress (especially if you have to put childcare into the mix), and are barely getting by.

Wow, £100 per week?! I can't even imagine. What an amazing position to be in, particularly if a secure tenancy where they can stay forever.

I think this is what people do not understand, just as you said. I'm a lone parent. I have to live where I do, for work. My childcare costs plus mortgage are almost £5k per month. Then I have bills and food and commuting etc to pay for...

DenholmElliot1 · 26/10/2022 00:05

A lot of you seem to be confusing "income" with "earnings" - they are two very different things and we are talking about income here - not earnings.

Zipps · 26/10/2022 00:18

Single incomes:
Low- up to £20k
Middle -£35k
High-£50k+

Household:
Low- £30k
Middle - £45/50k
High- £70k+

People who mention £150k are talking bollocks and want everyone to think they are loaded.

What matters though is whether you can live within your means.

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