Middle earners punished

[Eucalyptus321]

I am feeling so disheartened and frustrated by how middle earners are constantly suffering at the hands of ridiculous government priorities. My husband and I have a greater household income than other families we know but have less cash in hand due to increased taxes coupled with the fact we receive zero benefits like child benefit or tax free childcare etc. ZERO. If they want middle earners to fund the country thought tax then at least support us with childcare costs. It’s a joke that two parents earning £99k each get childcare funding but parents with one £101k salary and one £25k salary receive nothing. I just need to speak to people who understand the burden of raising a family amidst the current financial climate and then the potential of further tax rises!

I think the point OP is making (which you are also experiencing) is that the way things are set up people are not incentivised to earn more as they are effectively worse off. When you work more or try to progress in your job, taxes mean you lose more earnings. Not great any way you look at it.

Families here can afford to go on holiday every half term, have new cars, etc. Perhaps I’m looking forward to my children not being in nursery so we can afford that too!

Hmm, I'm a teacher and definitely can't afford to go on holiday every half term or have new cars. Your husband earning over £100k means you are not middle earners.

So you as a family live on £120k. So £10k per month? And, shock, you are expected to pay tax? Cry me a river.

2 top of scale teachers (without any extra responsibility) = 100K joint.

I think it depends where you live in the country. Basically people in the South and especially South East are fucked over.

Are you Rachel?

I think the only appropriate response here is "ok, boomer!"

We don't just believe it's high, it is high - only 4% of working people earn over £100k - the median wage in the UK is £38k, in London it's around £50k.

You obviously live in an area of high earners and are in the middle of them, but that doesn't make you middle earners. Most people can't afford to go away every half term!

This 100% OP.
It should be done on household income not sole highest earner!

Keeping up with the Jones’ never ends well.

I am willing to bet that they cannot all afford it and certainly not every half term. You are noticing the proportion who go away on one of them. You also are not seeing how much of their lifestyle is being funded via credit cards, leased cars, inheritance, smaller mortgages than you etc.

Comparison is the thief of joy. Stop looking at what others are doing and make sure you are doing the best for your family within your not middle earning means!

Where did you get 10k a month from?!

They're not leaving, they're loopholing 🙄

Slightly better off punches down to worse off and the elite sit happily deflecting back to us normal people.

Well teachers earn more than 2k per month when full time plus that bill is shared by you and your husband so it is not for you to pay all the childcare is it?

The problem with UC aswell is that it creates a poverty loop. The more you earn, the less you get. Which yes, does make sense. But it also means I have to earn SIGNIFICANTLY more to get any real benifit (once you’ve also considered extra costs to be able to work more).

@autumngirl714 Well, you see, this is what the OP - and many, many others - have the problem with. That's where the things have gone very wrong and show no sign of turning around. Welfare should NOT create a situation where one can get more by working less. Because that's exactly what everybody would be trying to do. And that just should not be happening any more. One should be getting more by working more (if they are able physically).

But when did you buy your beautiful house?
I bet is wasn't in the last 10 years and in the SE.

You're living under a rock if you are ignorant of the cost of a house in the SE.

The median salary is around £36K.

Two people on that would earn £72K Would get 3 x that as a mortgage that was do-able.

In the SE you could just about buy a 2-bed flat for £200K.

Yes we grew up here and it is one of the most expensive places to live in the UK I believe.

Thank you to everyone for your advice about not comparing. I think this is something I definitely need to remind myself of regularly. We are a young family and I feel like my husband and I work so much - my post was merely to speak to other people who feel the same frustrations as me so I had someone to talk to about it.

"Middle Earners" will still be a lot better off than "Low Earners" even with these increased taxes.

Being punished is exactly how the op is feeling and really this is what’s happening. The government encourages you to save for your retirement so you do and they come along and try to rinse what they can out of it. And this is coming from someone who does not earn anywhere near a hundred grand. To keep squeezing the same people over and over again is like squeezing a lemon. Pretty soon there is no more juice.

I could have written this myself. £65k is a good salary but it's hard going on your own especially in the South East. Sadly I dont think I'll ever own my own home and I'm not sure I have any more promotions left in me!

Exactly, I had several part time people in my team in my old job. They had nice cushy office jobs. Quite some way above minimum wage. None of them would increase their hours above 16 /week because then they would lose their benefits. Their kids were all late primary or secondary school age!

I worked more than twice as much as them, in a job with much more responsibility, for essentially the same net income

The point is, free nursery places of 30 hours a week is not available if one parent earns over £100K even if the other parent earns £10K.

I know of people who ask for £99K and the rest as pension contributions because high earners get no free childcare or CB, even if they live in the SE where houses are crazy prices.

It's crazy because it limits ambition and their tax goes to people who can be very nicely off on £25K NET on benefits and get all the free stuff too.

Preach!

Earning £100k cannot by any measure be described as a middle earner, it may not go too far in some parts of the UK but it’s a very strong salary.

I don't know how people afford to be teachers, nurses etc in London. Which probably has to explain why here in Yorkshire there isn't teacher shortages... teachers can afford not just to live but to live comfortably so less stressful.