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AIBU?

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Original poster

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

299 replies

SleepDreamThinkHuge · 09/04/2023 11:21

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...

OP posts:
PipinwasAuntieMabelsdog · 09/04/2023 13:11

@Lostinalibrary Adults can't claim DLA, it's PIP. If you're going to write goady ableist bullshit, at least get the basics right

Comedycook · 09/04/2023 13:12

We have a similar income to that and live in London. It's fine but we have a small mortgage. We'd be screwed if we had to rent a comparable house.

Emotionalstorm · 09/04/2023 13:13

Dibblydoodahdah · 09/04/2023 12:59

@Emotionalstorm I lived on £20k in London 20 years ago as a graduate but it was bloody tight after I had paid my rent, graduate loan (for post-grad fees) and travel card. I lived in a scummy house share in zone 4. I worked with many grads who had a comfortable life on the same income…because they lived with their parents, their parents bough them a flat, their parents supplemented their monthly income…

Yes I do feel for the new grads coming into the work force. I think that as a country we don't really prioritise our young people/children and it might come back to bite us in the long term.

kitsuneghost · 09/04/2023 13:14

Depends how big your rent/mortgage is.

Lostinalibrary · 09/04/2023 13:14

PipinwasAuntieMabelsdog · 09/04/2023 13:11

@Lostinalibrary Adults can't claim DLA, it's PIP. If you're going to write goady ableist bullshit, at least get the basics right

I know. They listed it all out for everyone to see. I don’t care what people claim, if they are entitled, they are entitled. However, it was the other end of the scale where people were claiming this was a normal family income. I’m not ableist by the way - far from it. You have a lovely Easter!

Lostinalibrary · 09/04/2023 13:15

Comedycook · 09/04/2023 13:12

We have a similar income to that and live in London. It's fine but we have a small mortgage. We'd be screwed if we had to rent a comparable house.

This is the issue - that and childcare nowadays. Someone paying the going rents nowadays and childcare are far from loaded.

jennymac31 · 09/04/2023 13:16

Our annual household income is just under £90k and we live in the South West. We don't have a car and our kids are at primary school so we have managed to set aside money for savings, holidays, ad-hoc treats which would have previously been spent on extortionate nursery fees. I've been fortunate to gain a couple of promotions in recent years, which have led to decent payrises. Whilst we do live comfortably, I suspect that this wouldn't be the case if we were in London (grew up there until my mid-20s and it was expensive back then!)

RosesAndHellebores · 09/04/2023 13:16

DS and DIL took the view that they wanted to experience living centrally while they were still young. Their lease is up in July/August and I think they will debunk to zone 3. They are waiting for the property market to reach the bottom and then will buy.

BashirWithTheGoodBeard · 09/04/2023 13:16

You won't get top ups on 32k.

That's just plain wrong. There are higher rate taxpayers getting UC, when their childcare and housing costs are high enough, so you can certainly get it on 32k. And the fact that people can do this is recognition of the reality that even wages well higher than the average don't pay enough to afford housing and childcare in some areas.

The reality is that housing costs in London have transformed over the last couple of decades and the residents don't all have the same exposure to it. If you're in social housing, have paid off your mortgage or first purchased 20 years ago, you're on a different planet in terms of living costs to someone who didn't do any of those things and is privately renting. What people earn can be be a relatively minor part of the story.

Alarae · 09/04/2023 13:16

I would say you can do it, but at a sacrifice of lifestyle. Where we live now (SE, commute distance to London) would be vastly more expensive where my BIL/SIL lives in Acton. Our mortgage is c£1.5k a month- to rent equivalent we are looking at £3k plus. Full time childcare will be an additional expense.

Our salaries combined are slightly above 85k and we could survive on that in London, but wouldn't be the same standard of living.

Emotionalstorm · 09/04/2023 13:16

Seeline · 09/04/2023 12:54

And many of them will be renting a room in a house share or living with parents on a vastly reduced rent/expenditure.

Show quote history

I don't think anyone is expecting grads to be buying their own homes straight out of university. That said I do think life is harder for them than it was when I graduated in 2014.

FloatingBean · 09/04/2023 13:18

PipinwasAuntieMabelsdog · 09/04/2023 13:11

@Lostinalibrary Adults can't claim DLA, it's PIP. If you're going to write goady ableist bullshit, at least get the basics right

There is a minority of adults who are still in receipt of DLA and have yet to transition to PIP.

Singapore4 · 09/04/2023 13:18

FloatingBean · 09/04/2023 13:10

You won't get top ups on 32k.

Many people on £32k, and even more, will be (or could be) getting a UC top up.

Just to put things into perspective for you. I live in a cheap area, I am a single parent and including CB and UC I get around £500 a month.

So if I earn 32 I know I wouldn't entitled to any help. Also with my wage plus £500 "Top up" its no where near the figure of 32k a year salary never mind 85k.

I think people in London feel others dont have nursery fees and wrap around childcare to pay also.

Other people in London are having to manage how do they do it?? Youbknow what they say about more money don't you? (The more you spend).

Dibblydoodahdah · 09/04/2023 13:18

@Botw1 but you’ve been given loads of examples on this thread. People paying £1800 for very basic one bedroom flats. £100 a day for childcare. AND you still can’t understand! OK, if it’s not a lack of empathy, what is it?!

Of course there are lots of people living comfortably on £85k in London…because they don’t have childcare costs and their housing costs are low because they have managed to get social housing or they have been gifted huge deposits by family, or they bought years ago. BUT there are people struggling on that income.

BashirWithTheGoodBeard · 09/04/2023 13:20

Emotionalstorm · 09/04/2023 13:16

I don't think anyone is expecting grads to be buying their own homes straight out of university. That said I do think life is harder for them than it was when I graduated in 2014.

Show quote history

I think the point there was that salaries being paid to people usually just out of uni don't tell us anything about what wage supports a family well. There are probably a few grad scheme entrants with kids but they'd be likely to get substantial top ups if that were the only wage coming into the household.

Pipsquiggle · 09/04/2023 13:20

Of course we don't know if £85k will be enough. We have no idea of your outgoings, the ages of your DC, where you want to live etc

If you need nursery care, beware - it is circa £100 per day

Botw1 · 09/04/2023 13:21

@Dibblydoodahdah

People haven't given any examples of anyone on 85k struggling.

They've given examples of them paying the bills they chose to have

Emotionalstorm · 09/04/2023 13:22

BashirWithTheGoodBeard · 09/04/2023 13:20

I think the point there was that salaries being paid to people usually just out of uni don't tell us anything about what wage supports a family well. There are probably a few grad scheme entrants with kids but they'd be likely to get substantial top ups if that were the only wage coming into the household.

Show quote history

Good point. I stand corrected.

PipinwasAuntieMabelsdog · 09/04/2023 13:22

Lostinalibrary · 09/04/2023 13:14

I know. They listed it all out for everyone to see. I don’t care what people claim, if they are entitled, they are entitled. However, it was the other end of the scale where people were claiming this was a normal family income. I’m not ableist by the way - far from it. You have a lovely Easter!

Show quote history

Then you ought to know better than to post nonsense like that on here then. Also, I'm Jewish so I will have a lovely Pesach, thanks.

Hamster1111 · 09/04/2023 13:22

It's a good wage if you got on the property ladder years ago and have a relatively small mortgage i would imagine. In London or SE starting out now you would struggle because of the cost of housing / rent. You probably couldn't buy a home without a substantial gifted deposit either, even on 85k as the multiples/ saving for a deposit whilst spanking 1000s on rent isn't do able. It sucks.

SittingOnTheChair · 09/04/2023 13:22

Housing and childcare cost are key to living in London.

These days I take home £3,645 a month. In London, very low mortgage (£530) and no childcare costs and single (children are adults).

I've never had so much spare money. I was on my arse when the children were young.

Dibblydoodahdah · 09/04/2023 13:22

@Singapore4 please do tell us what you rent and childcare costs are and then find us comparable rental and childcare places in London.

Bunnichick · 09/04/2023 13:23

TheWonderfulThingAboutTiggers · 09/04/2023 12:11

How can anyone think 95 k isn't "loads". Objectively it is, top whatever percent of all earners.

I understand you might not be able tk do everything on it but it is certainly loads. Roughly the same as 3 average households...

(assuming this is a reply to me) Surely whether it is "loads" is a matter of opinion but also what your outgoings are. We have young children in nursery which takes out a chunk of the earnings and my DH has an older child he pays CMS for.

Lostinalibrary · 09/04/2023 13:24

PipinwasAuntieMabelsdog · 09/04/2023 13:22

Then you ought to know better than to post nonsense like that on here then. Also, I'm Jewish so I will have a lovely Pesach, thanks.

Show quote history

Have a lovely Pesach. Oh, it wasn’t nonsense.

FloatingBean · 09/04/2023 13:25

Singapore4 · 09/04/2023 13:18

Just to put things into perspective for you. I live in a cheap area, I am a single parent and including CB and UC I get around £500 a month.

So if I earn 32 I know I wouldn't entitled to any help. Also with my wage plus £500 "Top up" its no where near the figure of 32k a year salary never mind 85k.

I think people in London feel others dont have nursery fees and wrap around childcare to pay also.

Other people in London are having to manage how do they do it?? Youbknow what they say about more money don't you? (The more you spend).

Show quote history

People on £32k absolutely can be in receipt of UC. Since you clearly don’t believe how UC works I will give you an example of someone with an income of £3k as a nice round figure:

Standard allowance. £525.72
Child element x2. £244.58 x2
Childcare element. £1108.04
Total = £2122.92

Earnings minus work allowance
£3000 - £573 = £2427

Earnings x 0.55 = deduction
£2427 x 0.55 = £1334.85

Total allowed - earnings deduction = total UC for month
£2122.92 - £1334.85 = £788.07

That is without any other elements e.g. disabled DC, carer, rent etc and from tomorrow the amounts increase as well. Even as a single claimant one would still be eligible.

We have a household income far higher than £32k and if we didn’t have savings we would be eligible due to having disabled DC, but we wouldn’t have a rent element or a childcare element.