Is £85k a good salary in London (family)?

[SleepDreamThinkHuge]

You may have been aware of a recent Twitter post where one guy was saying £85k a year in London for a family means you will still struggle. Other posters were saying it is not comfortable and definitely not rich. Others were also saying that £85k means your income is higher than 95 percent of the population in the UK. And some have mentioned just because you are £85k you do not need to send your child to private school it is a choice or buy a financed car.

Where do you stand? I can see both arguments but as someone who lives in London how I would love to earn £50k+ let alone £85k. Working in the public sector in a job I like means I earn just over £32k. In the near future, could earn closer to £50k in the next 5 years if I train, and take a more team leader/management responsibility. I think I am not the only one. A lot of people assume just because you live in London you are guaranteed to earn over £50k easily. Many professions are earning less than £50k in London (nurses, teachers, some doctors, police, public sector workers, banking staff in branches etc...

Its almost 3 x the national average

Of course its a good wage.

Choosing to spend all your money doesn't mean you never had it to start with.

85k for a single person, or 85k joint household income to support a family?

It’s a good wage. I live in London and am
the main wage earner. I earn 35k.

Not really because of the tax. I don’t think people understand how much tax people pay. For example, I saw a DLA post the other day (elsewhere) where the claimants were on 7.5k PER MONTH. Others comparing figures saying - it’s what people take home anyway on average. It is actually the equivalent to £150k salary before tax. No idea that £85k isn’t just divided between 12 and no tax free top ups, it doesn’t go that far with a mortgage and childcare.

@Lostinalibrary

Yeah

No one else understands how tax works

🙄

They clearly don’t.

@Lostinalibrary I think even poor people understand how tax works.

Hope you don’t mind me asking but how can you afford housing costs there?

They clearly do.

People on 7.5k a month on benefits saying that’s what a normal family takes home. I’d argue they don’t. The economic illiteracy on this forum also suggests otherwise.

I think people live their lives according to their income, and when other factors intervene like inflation, energy costs, housing costs etc, everyone may struggle to live the life they are used to.
Those on a higher salary may be able to cut back on more non-essentials than those on a smaller salary to make ends meet, but it's not always so eg the increase in mortgage rates will mean a bigger actual cost in a bigger mortgage, bigger heating costs on a bigger house etc.

We earn shy of 85k and I wouldnt even think about moving to London.

I prefer to live outside of London with more disposable income and visit.

If you already live there or have family nearby it's different because it would be worth the premium.

@Lostinalibrary

Someone on 7.5k benefits saying thats normal is as out of touch and as economically illiterate as someone saying 85k isn't a good wage

Plenty people on Mumsnet don't understand tax. I see it all the time.

@shivawn

And plenty do

My DC both earn £25 - £35k in London. However, they have to flat share with friends. DDs rent (no bills) is £1750 between her and one friend. DSs rent (no bills) is £1900 between him and one friend.

Both live 30 minutes out of central. So yes, living in London is very expensive.

If you start throwing nursery fees into it, £85k isn’t going to go very far.

We earn around that, maybe a little more. We live in the home counties, and couldn't afford the mortgage on a 3 bed semi in a decent ish part of london

7.5k per month? How, roughly, was that made up?

I live in a much lower cost area and wouldn't have much freedom on that so no I don't think it's a good income for a family in London. Manageable yes but most people will be watching their outgoings very closely.

All of them on DLA (multiple children and parents), UC, carers, child benefit.

Wow. I’m amazed if I’ve under correctly that a family is getting 7.5k per month income (no tax). That would certainly require to a very high taxed salary.

I guess a large family with complex needs in an expensive area but even so - that must be as unusual as earning 150k, eg well outside averages.

Take home with one salary at that amount net after pension etc is around £4200 , 3 bed semi in forest hill/honor oak/Sydenham (so nowhere flashy) £750-800k even with a large deposit you're looking at a mortgage of 500k so in excess of £2300 a month, leaving £1900 a month for all bills, childcare, food, savings. Yes you can do it but you're not living the good life

£85k would give you access to a £300k mortgage. For a single person, or someone already on the housing ladder it's a good wage.

A couple starting out might struggle as a single income to support 2 adults, a child and a new mortgage.

It's not much if you live in London. I work in London but commute in from somewhere where 85k goes a lot further.

We are a family of 4 in London. Between us we earn 45k and I feel we’re able to live happily. We go on holiday, cinema etc. we don’t buy much new and are careful with planning our spending but it’s totally possible. Lots of free things to do in London with children