Is £90,000 a year a middle class income?
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- เผยแพร่เมื่อ 3 ต.ค. 2024
- When being interviewed on the radio, I was told by the broadcaster that £90,000 was only ‘middle-class income’ and not enough for MPs. She was, very clearly, out of touch with reality.
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ABOUT RICHARD MURPHY
Richard Murphy is Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best known book is ‘The Joy of Tax’.
This video was edited by Thomas Murphy.
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Interesting how the MP's were awarded a 5.5% pay rise by an 'indepent review body' and they are just fine with that. Another group,.offered the same amount, are being gas lit by the government and attacked by the public over it. This other groups have seen their pay lag significantly behind inflation, whilst the MP's routinely receive above inflation pay increases. Odd that.
And an MP's gross salary isn't comparable to the average person, given the freebies they receive and what they can claim to cover their expenses. And they can double-dip by taking second jobs where they sell the promise of political influence and inside access. It's a racket.
@@machidaman one rule........
Yes. The MPs have been getting regular pay rises for years! (Ever since they got exposed over the "expenses scandal". And they still get tons of expenses anyway!)
@@mattmckeon1688💯💯
@@machidaman would you be an MP for £90k
Don't forget MP's also get allowances, residential assistance and additional awards for sitting on committee's etc
Yeah but it just a job for 4 years
@@Incognito-jf1dr which opens up many avenues for those who only serve one term, plus it’s up to five years as that is UK term but GE can be called early. Severance packages are also extremely generous as well as the circa 30% pension contributions to a public sector DB scheme
Oh please, there are what 300 MP's? so what, even if they earned a million pounds each it would make no difference to anything
I remember seeing the figure a few years ago stating half of the UK's population who are working earn less that £21k per year. And people wonder why the high streets and communities are stuggling to stay open and thrive.
Yeah but lots of those would be part time, job share etc. could a lot be women who have a husband who earns 40k plus etc.
That was a few years ago. Latest "half" figure is £35k. How did it get up to that? Remember reading about inflation?
Minimum wage is now £24k a year. However, other salaries have not increased anywhere near as much.
My wife is a care worker and society thinks its worth being in the bottom 10%.
The book Bullshit Jobs by the late David Graeber explained how the jobs most useful to society were often low paid. So much for the free market.
And we all know that care work (not always but a lot of the time) can be one of the hardest type of job anyone can do.
@@davidmcculloch8490There isn't a free market, we have minimum wage.
You want people to be paid less than that? F you.@@ltmund
@@ltmund Agreed. We also have governments bailing out banks when they wreck the economy...and subsidise fosil fuel companies, and agriculture. The Miltonian concept of a 'free market' has never/can never be achieved.
So, if 90k is middle class? That puts working class where? Sounds to me like an inadvertent admission that too many UK jobs are too poorly paid to bother with. Yet, they wonder why millenials and younger are increasingly choosing mental health issues and benefits with free time over getting a job and having no free time.
Traditionally, in the U.K., class is not about income.
@@alecdurbaville6355yeah but nowadays it is. It's the only factor that actually matters, nobody cares about job status, nobility etc anymore. It's only the affluence and the lifestyle you can afford that matters.
@@kobalos73 if you think some nouveau riche that has got lucky ripping off old grannies with equity release but still behaves like a chav and thinks that flashing money around and spending it like water is ‘upper class’, living a ‘lifestyle’ you’d be mistaken.
@@CplCurmudgeon 90k is working class. Middle class is a lie. There are only two classes, those that work for a wage and those that live by demanding rent on the means of production. The lie of "middle class" is told by the wealthy only to divide the working class against itself.
60k or less is working class, basically just make enough to cover essentials + minor extra expenditure. 90k is middle class, allows you to pay for essentials and have some money leftover to save/invest. Peoples expectation of middle-class has just shifted because of stagnant wage growth.
And the bottom percentile of less than £15,000p/a for a household? They are really scraping the bottom of the barrel!
Average wage for a teacher £44K
Average wage for a police officer £38K
Average wage for a nurse £35-40K
Average wage for a social worker £37K
Average wage for a firefighter £37K
All essential services. All more useful than journalists.
Especially so-called journalists in this outrage peddling media landscape we have. We don't have news anymore, we have noise.
Average Civil Servant got £31k in 2021, excluding London. I don't understand why journalists should get more
@@Eehonda_again Cabinet Office staff were paid £21k outside of London until very recently - one of the lowest-paying departments in the whole Service.
Average contribution to pension by employer for these professions is 28%, compared to 5% in industry. Those figures should be multiplied by 1.2 to understand true value.
These are basic salary not taking into account all the extras like paid sick leave , paid holidays 28percent pension contributions.
MPs don't need a second home. Stick them in an apartment block in London together, ideally on a run-down council estate so they can see how the proles live. Or, encourage them to work from home.
@@clementattlee6984 brilliant suggestion
What a silly remark.
@@grahamthomson6969nope it is accurate.
These are household figures too. If you are a single adult in one of the bottom groups life is practically impossible in this country.
I would never call myself middle class. I’ll always be working class.
Middle class is a capitalist invention to divide us. There's 2 classes people who work for a living, the working class, and the people who own everything and don't have to work.
@@JamesH1973 unless your income comes from owning the means of production the you are working class. If you are taking a wage from the capital owners (even if its as a contractor or sweat form a small business) then you are working class. Middle class is a lie to split the working class against itself.
I'm not sure that they're mutually exclusive.
@@jupiterlily13 they are in my opinion.
@@JamesH1973 most middle class people would be in big trouble with one missed paycheck.
I don’t know any middle class people that don’t need to work.
I'm disabled and in poverty. I can't even imagine that amount of money.
Same and i really wish they would make the assessments fairer
No jobs available?
@@MCDONALD6969she did say she was disabled.
@@michaelfourie345 I understood that. I just wondered whether there may have been a work from home role that may have been suitable. If I was stuck at home I would want some sort of job to occupy my mind.
@@MCDONALD6969 youre one of those who think that sort of quip is smart? I worked as I was suffering from a progressively disabling disease. I had to stop working eventually. I got £8k in non means tested disability benefits. Youre so dumb you think youre smart.
I once heard an informed commentator on radio 4 who had run the stats of MPs salaries against what they HAD earned before they became MPs, as once they've been in power for a while they start saying "I'm not paid enough". Apparently over 65% of them would be earning a lot less if they went back to their original jobs!
Thanks Professor Murphy.
Yes £91k per annum is a good salary, granted living in London/south East means that 91k per annum goes far less than in other parts of Britain. But your point is well made £91k is a high salary by any means that you care to measure it by.
Obviously, if the MP wants to own an expensive big property in London, drive one or two good cars and send their children to Oxford etc, then 90,000 GBP is not enough.
The MP's call to serve the public should be the over riding quality to select a responsible and good MP.
But MPs get a second home allowance, so they can live somewhere more affordable and have the taxpayer cover the cost of their London "office".
Everyone knows this is 90k is top 5%. Average income about £32k.
It's really not that much in London or the south east
@@neilsmith154 to me median is still working class & to be middle class means to be relatively well to do.
@@DavidByrne85 That’s what sticks with me sometimes. From what I understand, traditionally, the middle class could include lower levels of aristocracy, new money or even high paid professionals or successful artists/singers and things like that. Very comfortable, not disgustingly wealthy compared to the very top but still rich by the vast majority of most of the population’s wealth.
But I think we have reordered the term to literally mean the middle between everyone now.
@@MCDONALD6969you keep saying this even though it is a statistical fact. Here’s a hint nobody here is going to say it’s ok for you to not pay your tax.
@@Redf322 who said anything about not paying tax?
Let’s not forget all the expenses they can claim as well. It’s not forget that cars, drivers housing food trips
💯💯 Plus everything inside the HoC is subsidised!
I live up north. It’s a sea of minimum wage jobs with the odd better paid one here and there so even the £35k average is more than most people make.
Whereabouts?
What county
It's not much different in the south. I'm often applying for jobs they are 26k at most
@@skyblazeeterno I could only dream of £26k as a pensioner
West Yorkshire. There are some well payed jobs advertised, don’t get me wrong, but it’s a hell of a lot of minimum wage jobs with rubbish 1 or 2 shifts a week.
£35k up north is equivalent to £50k down south.
I am disabled and signed off from my job at the moment, today I am having to spend food money on a taxi to go for a work coach appointment (I am signed off sick and have a job already). Clare Foges has no clue how some of us have to live
Just as an idea, have a look at taxi card, it gives cheaper taxi journeys based on your pip assessment
Taxi! If only I could afford a taxi! No buses or trains?
They should rename parliament super market sweep.
I've been below 30k for most of my 37 years of life.
Very few ethnic minorities are anywhere near that money, let alone working class native British people.
Not so, a great many of minority ethnicities are very well off in the UK. In fact some ethnicities are hugely over represented in the top 1% mainly due to good work ethic and solid focus on building a good life for their family and providing the best opportunities to their kids.
Indian Asians often work in high paying jobs in medicine and IT, so I disagree.
@@schrodingerscat1863 where are you getting your data from? The reform parties website?
@@Godlike-87 I live in a pretty affluent area and I would say probably 80% of the £1m+ houses are owned by Indian families. Maybe even higher than 80%. Indians are absolutely smashing it in the UK.
@@tancreddehauteville764 Exactly, those of Japanese and Chinese origin are also doing extremely well.
I don't mind MPs getting a higher salary, provided that a) they earn it and b) don't have any side hustles. Unfortunately, far too many wrong 'uns among top decile earners have been exposed in Private Eye.
Well, quite a few of them are being exposed in the media now, albeit the mainstream media is playing it down.
there should be a second job ban and they should have to put their shares in trust for the duration of their term in office.
@@Minimmalmythicist Ideally, all politicians would have talent and experience. This used to be the case, with a left wing MP typically having a life of public service and the right a career in the military. Now parliament is more likely to include PPE graduates, debating society royalty and politics geeks. A year in chambers, fast tracked as a spad or earmarked through the local party, and a seat on the green benches barely out of uni.
@@borderlands6606 I think really, parliament needs more diversity of backgrounds and professional backgrounds certainly is part of that.
There are much fewer trade unionists on the left than in the past, for example.
@@borderlands6606 Also, there are few politicians who have been self-employed, as far as I am aware.
You can understand the comment that "I can't see how anyone can live on £90,000 per year" by assuming that poor people are not people and don't count.
So 90% of people are living below what mps get? 🤔
Yes
I never understood why they brought in a minimum wage when they should have brought in a maximum wage. Didn't wages use to rise each year before minimum wage?
@@bernieburrows3731wages used to be competitive at a local level. You could go for a job up the road because they pay more, how it's minimum wage takes it or leave it .
We are a retired couple, she a mid-wife, me an industrial electrician, we were in the 9th decile. We're working class
@@fylbike all wage earners are working class no matter the wage. Only capital owners are not (earn their income by rent seeking on the means of production)
You must have very good pensions in that case. That's often the case with boomers.
@tancreddehauteville764 when working, she has an NHS pension , me, money purchase
To say that you can't live on £90k a year, even in London, is absolutely ridiculous. Indeed, it could be argued that £90k is an upper middle class income, let alone just middle class.
Income doesn’t dictate class. This isn’t America.
@@GetGwapThisYear Income is not the only thing, but it is a major aspect.
@@tancreddehauteville764 it can be, but £90k isn’t indicative of anything. If you’d become homeless pretty soon if you left your £90k per year job, you’re working class.
@@GetGwapThisYear why would you become homeless?
I’d consider an income that could comfortably cover boarding school fees to be where an upper-middle class income begins. That’s probably a household income of £300-500k
it's a bloody fortune mate...
Not to some reporters and commentators, hence bias of the media
@@fylbike their bias is probably less to do with their personal income and more to do with the income of their paymasters and whatever narrative they wish to present.
£90k seriously isn't that much especially in London or the south east
@@MCDONALD6969 yes it is statistically it is a very good salary still comfortably in the top ten percent if one then goes on to add the generous travel accommodation and other expenses this is a top level salary. If this is considered insufficient to experience a reasonable standard of living what does one consider the lives of the other 90% to be?
@@philipnorthfield a "reasonable standard" can mean many different things to many different people. Also good jobs are available & i always ask myself how much are people putting into advancing their careers or being business minded to give them a better quality of life. Also some people may be happy on the minimum wage & don't aspire for anything more.
I'd settle for a proper MP wage scale that starts lower and ramps up with experience. The pension is also too generous for those with shorter service. And MP's should not be allowed to be landlords because it gives them a perverse vested interest in housing policy.
Two people on 45k take home more money than a single individual on the same amount
Now check for London households where MPs spend most of their time
I think Parliament should be relocated outside London with a new constructed commons chamber designed to accommodate 1000 seats. An apartment block should be located nearby for the rare occasions when MPs are required to attend. Day to Day business should be done remotely from Constituency offices via video links and broadcasted to large screens in towns and cities around the country as well as via the BBC. Above the screens a list of all the MPs who are logged on and taking part in the various debates should be displayed.
Leeds in West Yorkshire is quite central to the UK in terms of distance between constituencies.
I broadly agree with this analysis, but I would seriously question the validity of allowing MP's a second home.This is a definite conflict of interest as they benefit from rising house prices and it increases the opportunity for excessive expense claims. It would be better for the State to provide that second home whilst an MP is in office and for the State to retain ownership of that home.
EDIT:-
Philip Northfield below has corrected me on the second home. I still think though that the State should provide those homes. There is great inconsistencies in expenses claimed still.
@@richardhale9664 the MPs expenses don't buy them a second home they allow an expenditure for them to rent one, if their constituency is outside London it is reasonable not to expect them to pay for such accommodation out of pocket and travel certainly for those further afield would be impractical.
The Government should build 1-2 blocks of flats (each unit being 2-bed) and every MP would get one allocated to them for the time they are in parliament. They should also get free utilities, but only up to a certain amount. Of course, if they did not like the arrangement they would not have to stand, or alternatively they could pay for their own accommodation. I'd also set a minimum age to stand (say, 35) to ensure that they had real-life experiences outside of the Westminster bubble. Intelligence tests would also be useful, as would maths tests to see if they can handle and discuss numerical data.
@@philipnorthfield I have just looked it up. Thank you for correcting me. I still think it would be better if the State provided that accommodation though.
@@richardhale9664 I personally wouldn't argue against that position.
@@jasonali4122can you imagine it? It would be a scandalous den of filth
Most MPs could not command a salary of £90k in any other employment, so why in parliament?
To be fair you could say that about almost any job. £90k for an MP is quite low... IF the job is done properly. The problem is, almost no MPs are up to the task.
@@DogfacedblokeI don't know, looking at the behaviour and experience of some MPs I'd think they would struggle on the private sector, unless they have contacts that can parachute them into high salaried position....
@@stuartd9741 That's my point. Most jobs are specialised and the holders of those jobs wouldn't be able to transfer to a completely different role on the same pay. MPs are no different in that respect. It's not the wage that's the problem, it's the fact we don't hold them to account and many take advantage of that.
Because it's a very important job.
The less money one gives MPs the better the quality of MP. Make second jobs illegal, make Lobbying in government illegal. Make the ‘independent’ org assessing pay for MPs truly independent and democratically elected.
I wouldn't make second jobs illegal. Income from them should be set against what an MP is paid and at least some of their expenses (such as that for keeping a second home) on a proportionate basis - possible reducing their pay by £1 for every £2 of outside income.
There are people who have studied hard and learned to do some amazing and very vital roles within our society and absolutely deserve to be rewarded well for the work they do. What is unacceptable is having people do jobs - that are clearly important or the jobs wouldn’t exist - that pay so little that the people doing them can barely afford to exist let alone have a decent quality of life.
What is communicated by that is “you are an unimportant member of society and do not matter” and if that’s the case why should people in that position even care about the society they are meant to be apart of.
I have whole teams of software engineers paid a _lot_ more than 91k to use analytics to make bets on sports.
The real story here is that this style of economy doesn't particularly reward people for doing useful things. Sometimes it does, but mostly what it does is concentrate wealth into the hands of those who already have it.
I sometimes wish the average worker knew how hard they were getting screwed. Working so hard for a fraction of what others are getting for doing so much less! But for someone who maxes out at 50k in their life doing long hours its nearly impossible to imagine what it's like for some who a 150k is unacceptably low for a part time position
@@anthonyhiggins7409 Totally agree. Fewer corporate lawyers making fortunes by making misery and more people who make things and make a difference. We stood on our doorsteps and applauded our brave nurses during Covid and now this government wont give them a pay rise. It makes me want to vomit over over them (the politicians, not the nurses!) 🤬
Salaries aren't correlated with your worth to society. They are correlated to your worth to the wealthy. Money drives capitalism, not societal worth.
@@SteveBoyle-w3z I've heard that argument put before, but it is flawed. As someone said to me, a successful parasite is one that doesn't destroy its host and right now there is a question mark over whether capitalism is behaving like a successful parasite.
I find it hard to imagine living on 90,000, in the sense that I´ve never seen anything like that money in my life.
£90k is a lot in the north.
£90k is a lot if you’re in your 60s, at the tail end of your mortgage and house value has tripled since buying.
£90k is a lot if you’re in your 50s, kids out the house, earning interest on inheritance from deceased parents.
£90k in the South East, paying 5% interest mortgage, commute costs, childcare costs, etc. is barely hanging on.
Spot on
Well summarised
Yep
I just love your free wheeling and honest explanations which always are "SPOT ON" well I agree with them! Keep it up!
It is not surprising given the total lack of understanding of statistics and mathematics demonstrated so clearly during the height of the pandemic. No wonder these "advisers and politicians" have had enough of experts!
Some former MPs believe their salary of around £90,000 is a low income, yet the same people have voted for and support austerity, cuts to public services and welfare reform with Universal Credit and massive benefit cuts.
If you look at purchasing power, 90k today is equivalent to 40k 10 years ago. Now if you deduct tax from both figures, 90k today would be less than 40k 10 years ago.
Its ironic that the upper class think 90k is unlivable, but dont do anything to help households earning 20k or less because they "have enough"
I’d rather MPs are paid £200k PA, flat, PAYE, no extras, no directors jobs, outside influence, free clothes, concert tickets etc etc. To be beyond reproach is it worth it.
They'll need some extras as they have to have a second dwelling due to House of Commons attendance. As for expenses, a lot of those are to pay office for staff as technically the MP is their employer, albeit it is funded via IPSA. So at the last election as so many tories lost their seats, the staff also lost their jobs - over 1000 I think.
MPs are certainly paid enough imo. To the extent that second jobs should be banned. If they really do work for us, other sources of income or donations clearly risk a conflict of interest and should be banned. (With minor exceptions to maintain professional quakifications possibly allowed.)
Very. Well explained. I wish MPs would take notice of your sound thinking. Best wishes. Al.
Excellent point, very clearly made. MP's pay should be regarded as well above middle class, expenses aren't bad either!
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Aww those poor MP,s..Let’s not forget their perks,handouts for favours etc.
£90,000 doesn’t today buy what a middle class income bought 50 years ago.
Distorted view from her because she probably works and lives in London. Your figures are for the whole of the UK
Its interesting about MPs, they are paid very high salaries and then they come on radio and tv and complain that they are not earning enough. The British public don't get value for money.
Well the saying, that price and quality go hand-in-hand; doesn't seem to the the norm, when it comes to politicians!!
So the accountancy teacher is trying to put some bar charts together! That's cute.
Well said. I'm always amused when MPs defend their second jobs and directorships on the basis that it keeps them in touch with the real world. As if mahogany-panelled boardrooms and business lunches were a feature of most people's lives. I think 90K is reasonable - provided they are no allowed to do second jobs. It puts them on a par with many professionals and compensates them for extra hours worked compared to the rest of us and for being away from home for long periods but it does at least mean that they have to be aware of bills and expenses just like everyone else.
40% fiscal drag has pulled the 'middle class' to it's knees
Get used to it. 40% will soon be basic rate, let alone higher rate.
90k is in the top 5% of UK income.
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£80-90K is totally middle class. It didn't used to be but inflation and tax-drag means that it is significantly less money than it used to be. I know the video argues that it's still high for the UK (but that is just because we got poorer), compare tha to US salaries.
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Tart up one of those office blocks that they converted into ‘housing’ and they can stay there for parliament work instead of us paying for expensive second homes that they go on to sell and keep the money 🤬🤬🤬
£91k is not so much in the South East where family homes typically cost north of £400,000 starting prices. People on median incomes of £30-40k are poor in London / SE - cannot buy a home, probably weighed down with rent or shared ownership for their entire lives. A middle ranking clerical role in the City pays more than £91k.
You missing the point. Westminster isn't attracting the best and the brightest. As a country we have suffered severely because our MPs are at best second rate induviduals with limited or no experience who spend their time playing the Westminster game, popping up on TV and backstabbing each other. No one has a plan fir improving the country.
Agreed. 100%
When has anyone that wants to help the majority ever voted into power? Those are the people we're told to hate!
Here are Three quotes by Nye Bevan:
How can wealth persuade poverty to use its political freedom to keep wealth in power? Here lies the whole art of tory politics.
--------------
Honest politics and Tory politics are contradiction's in terms.
Lying is a necessary part of a tory's political equiptment, for it is essential for him to conceal his political intentions from people. This is partly the reason for his success in keeping power. (Yep! The tories have taken over the Labour Party)
--------------
The right of the Labour party would rather see it fall into perpetual decline than abide by its democratic decisions.
(To late, Nye!)
------------------------------------------------------------------------
And a couple by Americans:
"If you're not careful, the newspapers will have you hating the people who are being oppressed, and loving the people who are doing the oppressing."
Malcolm X
--------------
If you can convince the lowest white man he's better than the best colored man, he won't notice you're picking his pocket. Hell, give him somebody to look down on, and he'll empty his pockets for you.
Lyndon B. Johnson
@@rdh-daliasjb3796 the Tories help the majority. They offer aspirations
@@MCDONALD6969 You can't live in an aspiration! You can't feed your family with an aspiration!
@@rdh-daliasjb3796 ok - so are people looking for better paid jobs & trying to advance their careers?
I suspect all this leaking of freebies and client media talking up if they were paid more, there'd be less inclined to take freebies is putting out the feels fir upping the MP salaries to an even more disgusting amount.
I think you'd be better doing median earnings for London. It would still show the pay's clearly not middle class but would give people who disagree less opportunity to dismiss it.
Also.. had a flat mate in London, privately educated, who thought people weren't rich because they spent most of their money on private school fees, a nice car, a nice house and a second home somewhere nice! "Not much left after all that"
You should see what some university vice chancellors are on.
If you have to live anywhere near London 90k is basically not a living wage
Yikes, I work two jobs - £6K in the bank part-time and c. £10K from running a business. Both Labour & Conservative need to be booted out. Hard working people are the way forward. Happy to start the conversation and create a REAL workers party.
Yes, I too feel sorry for anyone on 90k ( says a pensioner on 10% of that ) . Totally out of touch.
So if this journalist thinks £90K is what most people earn or need to live how much does she think pensioners need with either no other income or a small occupational pension? Or full time carers for a family member? Such a lack of awareness or it seems interest.
MPs are paid a lot more than that when you factor in all the expenses they can claim and gifts they're likely to receive.
Fascinating and alarming. An interview with Jeremy Corbyn came to mind. When talking about quantitative easing, in Parliament. He said M.P,s around him were turning to each and saying "whats that"
Also if we want the best MPs we should look at how well the best talent gets paid (in London) and pay them similarly, otherwise we’re not getting the best talent and they’re more susceptible to bribery/influence via gifts
My MP has 6 posts and his combined income is near to 160k, yes he is a red MP but is he middle class?
Why is it, do you think, that the Inland Revenue does not treat gifts to politicians in the same way that it treats gifts to celebrities, business people and civil servants - which are liable for tax?
Because the politicians make the rules and make sure they don't apply to themselves.
Did not know that university professors earned so much.
They are extremely well paid. It's a tough job with long anti social hours for many they are away from their families a lot. I don't begrudge them this salary, but I think their pay rises and pensions have been more generous than other public sector workers this is not a good luck. As for being out of touch this has been a real problem. The harsh cuts to our welfare state have been made by people who have never had to rely upon it and have rich families to help them out. We need more genuinely working class MPs and less Oxbridge educated MPs.
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I'm 37 and have been looking for ways to be successful, please how??
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We live our lives in spite of politicians not because of them. They have no sense of shame. 😞
The brutal truth which nobody wants to face is that if you take away the top 10% of owners the 90% of the rest have an average wage of £25,000 only and that’s the average about 35% earned less than £20,000 a year , averages mean nothing unless they’re qualified
It’s interesting hearing this when various members in parliament deem approximately £1,000 PER MONTH is appropriate for pensioners - okay so there are other benefits. But it still does not add up to a hill of beans when someone could have been paid considerably more in their working life. And furthermore, is the governments way of lumping all pensioners into the corral of near-poverty. And I have no power to say anything to the chancellors of this world because I have no money. It wouldn’t do to have an uppity pensioner smacking down a chancellor, would it??
There's no such thing as the "middle class", that's just something the owner class made up to divide the working class.
There are two types of people in this world: Workers, and exploiters
I make £128k a year in London. The damp patches on the walls of my tiny apartment keep me grounded. I would live somewhere posher but if you come from a poor background, that salary cannot buy you anything decent in this blessed city.
£90000 before tax/NI = £62000 after tax/NI = £1190.32 a week to live off...
That should just cover the bills for a London family terrace house.
@@jablot5054 ...my point exactly...
Better to think of middle class costs and what income is needed to cover these costs and where the costs are 50% of net income.
I don't think 90k is an absolutely amazing salary in London. In the UK we are so used to shit salaries. I've got friends in Texas who have living costs 1/3rd of London earning 200k dollars in middle management positions in HVAC companies. Yet here 90k in the most expensive city in the world is considered not middle class I mean cummon! We need better wages across the board! I wouldn't want to live in London on less than 100 household income frankly. And basically any accountant, lawyer or doctor (all middle class jobs) should be able to make that
50 years ago a house in Hampstead might be inhabited by a headmaster or bank manager. Now it would be an oligarch or a successful media figure. Even professionals can't aspire to their own house in London. I don't think 90k would begin pay the mortgage after living costs.
@@borderlands6606 Bang on the average person could finish school and live in London with an average job quite comfortably. Now you have to have rich parents, postcode equity, or in the right place at the right time. It will all come crashing down at some point though as we are not productive enough to sustain it
Don't compare the USA to UK. It's apples and oranges.
@@tancreddehauteville764 right but I just feel like in the UK there's this kinda stagnant attitude where we're like crabs in a bucket pulling ourselves down and as people finally get mediocre pay rises (train drivers is a good example) everyone's seething about how they should just be happy with 60k.
People should be excited and happy about higher wages. Things have stagnated for 50 years
@@felixarbableThe US has always been able to dig itself outside a hole because of the industry and now it has a booming tech industry. The UK when it was at its peak sold everything off and privitised everything and now it's an unproductive service industry economy where the money is tied up in liabilities and assets but no long term investment in infrastructure and because of our outdated planning laws we can't implement projects like HS2 simply due to cost and that our education system favoured the degree and white collar jobs rather than blue collar hence why the UK is finished
The U.N own statistics advised that you would need to 120k a year in 2006 to live and raise a family outside poverty in London
Good God.....£91,000. Never in my wildest dreams. I'm educated to Post-grad level. Worked long hours over many years and never achieved even close to HALF of that income. Is it me living in Fairyland or only politicians???
One day the govt will decide if it is looking an individuals ( how we are taxed) or households ( how benefits are paid).
A good hard working couple will earn around £50-£60k if you are lucky. The vast majority earn much less. £90k is colossal especially when all expenses and allowances are taken into account.
I think if you can earn around £60 000 between two people and if you're careful you can live comfortably.
not in south east, definitely not in London
Did the broadcaster mention the very generous pensions MPs receive, and payments when they leave office? To put things into perspective. In the UK, if you qualify for the new State Pension, then as a single person you are expected to survive on just £221.20 a week, or £11,502.40 per annum (2024). It's one of the lowest pensions in Europe. The standard Personal Allowance for UK tax purposes is £12,570. So, if you did the right thing, and, say, paid into an occupational pension, then any income above your Personal Allowance-which is just another £1067.60 above the state pension-will be taxed. How's that for a comparison, and how's that for fairness!
are those percentiles pre-tax?
UK has such low wages, it's one of main reasons the economy struggles as there is no spare cash to buy things outside the necessary for many.
Good video! Given the lack of maths in the UK, it is worth spending 30% explaining the difference between mean and median!
90k is not a lot of money.
Keep telling it like it is
Well, £1,730 a week is hardly working class!.
In London £90K is a modest income if you want to have a life, holidays, family, etc and not just pay the bills. GPs tend to earn more than MPs and I bet as a senior academic you are not far off £90K yourself. Given the risk of corruption in public office I would say it is probably more important to pay MPs well than it is to pay doctors and academics. Human nature being what it is people are going to take advantage of being close to power. Better to have the state reward them genoruosly than vested interests doing so.
The problem is they take the states payment, and then still make use of the corrupt ways to earn more on the side. Even if it's legal, the question of ethical is not considered by many - e.g. recently taking clothes donations that are worth more than some peoples annual salary.
Academics do quite well. I worked for a southern UK principal lecturer of accounting 14 years ago. He was on £70000 a year and he paid me a small fraction to lecture 480 Chinese students per class, in China of course. Could not get away with that in UK.
This is the metropolitan elite attitude writ large (and then they wonder why large parts of the population are so unhappy as they have no idea about reality for most of us)
Financial education is what we need right now for more than 70% of the society in the country as very few are literate on the subject. Thanks to Stacey Macken, the woman that changed my financial life.
Honestly, I'm surprised that this mrs Stacey Macken is mentioned here, came across a testimony about her from one of the beneficiaries on the CNBC news, she seems to be doing extremely well .
That woman has changed my life for good. I attended her investment class couple of weeks and she's the best when it comes for guidance
She understands every beginner's intention and fix you to a trading course that matches your capacity, she knows her stuff! Her advice has been invaluable to my trading journey. Definitely worth giving a shot
I agree with you.I was 35 when I finally educated myself and started taking steps. I went from $176,000 in debt with zero savings or retirement to now, 2 years later, fully debt-free and over $1000,000 net worth. I know that doesn't SOUND like a lot, but I'm incredibly proud of it. Now I'm fast-tracking my wealth building (investing $400,000 annually) and don't owe a dime to anyone. It's a good feeling!
Stacey Macken guided me through budgeting, highlighting areas where I could optimize spending and increase savings. She also provided insights into smart investments to grow my wealth over time, ensuring financial stability even with the higher income
You missed out that on top of the £91k salary MP's claim for everyday living expenses plus free rail travel and free postage and a kick in the teeth for millions of people, the HoC and the HoL do not have to pay a TV licence ( Crown property )
As you work in Sheffield you will know that areas such as Walkley, Crookes, Manor and Parsons Cross for example are deprived areas and £21k pa is enough to live on.
Trying to live anywhere south of Watford Gap is almost impossible if you earn less than £80-£100k a year.
Earnings and salaries are relative.
You probably need to look at London as this will massively change the stats...