Families need £62,000 a year to join Middle Britain
Families need to earn an average of £62,000 a year to become a typical Middle Britain household in 2008, according to the AXA Financial Task Force.
The AXA group says the term ‘Middle Britain’ needs to be redefined as it does not represent ‘middle income’ Britain and only applies to a significant minority of households, although the group as a whole is growing.
Although one in three Brits now consider themselves to be part of Middle Britain, the AXA Financial Task Force analysis shows that in fact around only five million households – 20% of all homes – fall into the true definition of Middle Britain.
Typically a Middle Britain household has an income of between £40,000 and £100,000 per annum, earns an average of £62,000 a year before tax and has a disposable income of £40,000 a year – some £22,000 more than the average UK household. And unless you have at least two cars, have a mortgage or own your home outright, and work in management or professional occupations, the chances are you’ll struggle to become a member of this group of university educated families, the AXA Financial Task Force figures suggest.
Steve Folkard, spokesperson for the AXA Financial Task Force, said: “Ever since the days of New Labour and the rise of the so-called ‘classless society’, many people think that Middle Britain represents the majority or middle section of households in this country. And in fact thanks to an inflated housing market many people probably feel they belong in that category.
“However our research shows that Middle Britain is in fact a smaller group of families than most people might think, though many of the same stereotypes still apply.
“What is also clear is that Middle Britain households have felt the effects of the rising cost of living. Despite seeing an increase in their disposable income over the past two years, the typical Middle Britain household has not been able to increase their relative spending power.”