Determining what is considered a poor salary in the UK depends on various factors like location, household size, and individual circumstances. However, there are some general guidelines that can help define a low income.
Definition of a Low Salary
In the UK, a low salary is generally defined as earning below 60% of the national median income. The median income is the amount that divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount.
According to the Joseph Rowntree Foundation, the minimum income standard for the UK in 2022 is:
| Household Type | Minimum Income Standard |
|---|---|
| Single adult | £12,750 |
| Couple with no children | £21,250 |
| Lone parent with 1 child | £26,500 |
| Couple with 2 children | £38,500 |
This minimum income standard estimates the income required to afford a minimum acceptable standard of living in the UK. Households earning below these amounts would be considered low income.
UK Median Income
The median income in the UK for full-time employees in 2022 is approximately £31,285 per year according to the Office for National Statistics (ONS). This means 50% of full-time employees in the UK earn more than £31,285, while the other 50% earn less.
Using the 60% of median income guideline, any annual salary below £18,771 would be considered low income for a single adult. For larger households, the low income threshold would be higher.
Common Low Salary Jobs
Some of the most common low paying jobs in the UK include:
- Cashiers – Average salary around £13,000
- Waiters/waitresses – Average salary around £14,000
- Cleaners – Average salary around £15,000
- Kitchen assistants – Average salary around £16,000
- Nursery assistants – Average salary around £17,000
Workers in these roles, especially those outside London, commonly earn salaries that would be considered low income for a single adult. Salaries in these customer service, hospitality, and care roles tend to be among the lowest in the UK.
Location Differences
Location has a major impact on salaries and the cost of living in the UK. While £18,771 might be considered a low salary nationally, that amount would go much further outside big cities like London and Manchester.
For example, average salaries in London are generally 15-20% higher than the national average. But the cost of living is also around 20% higher in London. So a salary of £22,500 would be considered low income for a single adult in London, even though it’s above the national average.
In lower cost areas like Northern Ireland, Northeast England, and Wales, salaries tend to be below the national median. But expenses like housing and council tax are also much lower. So salaries of £16,000-18,000 outside London may provide a comparable standard of living to higher pay in the capital city.
Benefits for Low Income Households
Those earning salaries considered low income may qualify for certain benefits and tax credits in the UK. This can help supplement a low salary. Some options include:
- Universal Credit – Financial support for those working on a low income or unemployed. Replaces 6 other benefits.
- Child Tax Credit – Extra money if responsible for a child. Paid based on income.
- Housing Benefit – Assistance with rent payments if on a low income.
- Free School Meals – Children may get free meals during school if parents receive certain benefits.
- Other Support – Help with NHS costs, discounted utilities, and more based on low earnings.
Factors Impacting a Good Salary
While the median income and minimum income standards help define a low salary generally, what’s considered a good salary can vary significantly based on:
Location
As mentioned earlier, salaries tend to be higher in London and the Southeast, but so is the cost of living. A lower salary in the north of England may equate to a higher standard of living.
Household Size
Single adults need less income than larger households with kids. Two incomes can also make salaries stretch further for couples.
Expenses
Regular expenses like housing, food, transportation, and childcare needs determine how far a salary will go. Costs can vary widely by region.
Debt and Savings
Those with high amounts of debt or lacking in savings often require higher salaries just to get by each month.
Retirement Planning
Salary needed for retirement planning depends on factors like the desired lifestyle, life expectancy, and age savings began.
So while national salary standards help determine a low income, an individual’s specific situation is key in deciding what salary is considered good.
Conclusion
In summary, a poor or low salary in the UK is generally considered to be earnings below 60% of the national median income. For 2022, that means any annual salary under approximately £18,771 for a single adult. This threshold increases for larger households.
Common low paying jobs are in the services, hospitality, retail, and care industries. But location also impacts salaries significantly. A lower wage outside high cost areas like London may still provide an adequate standard of living.
Those earning a low income can qualify for government benefits and credits to supplement their salary. And many factors like household size, expenses, and retirement needs determine what salary is actually considered good for an individual.