A UK household would need one person to earn an annual salary of £42,781 to be able to live an average life.
The average household is made up of 2.4 people, and has annual outgoings of £30,571, while also saving £2,160 per year, according to statistics from the ONS.
Research from IVA Advice reveals that a single breadwinner in the household would need to earn £42,781, giving them an after-tax income of £32,731 to account for the UK’s average spending and saving.
Despite covering the typical outgoings of a UK household, the salary itself is 37% above the national average.
birkenhead.news looked through a range job websites, and found the following jobs amongst those listed that reflect the ‘average life’ figure:
- Operations Manager based near to Hamilton Square Station which extensive business analysis experience gained in financial, insurance, surveying, building or multichannel environments is required and has a pay range of £41,000 – £48,000 per annum.
- Bond Manager based in Birkenhead which requires experience required with a wider knowledge of the surety market and supervisory or management experience in a similar environment. In-depth knowledge of FCA regulations relating to the role and has a pay range of £30,000 – £42,000 per annum.
- Private Client Fee Earner based in Wallasey with a well-known law firm that is looking to appoint a Private Client solicitor with the caseload being biased towards wills and trusts work rather than probate. The pay range is £30,000 – £40,000 per annum.
Alternatively, if two people are bringing in a salary, they each need to earn £18,714 a year, which equates to a net wage of £16,366 each. The annual income is 18% below the national average, but two people earning the amount would be able to live the UK’s average lifestyle.
The average UK household budget breaks down to £2,548 a month, with some of the biggest monthly costs including housing, i.e. paying a mortgage or rent, at £309, food and drink at £279 and recreation and culture, such as pet and TV fees costing £205.
The study was conducted by IVA Advice to raise awareness of the importance of keeping track of household finances.
Commenting on the study, a spokesperson for IVA Advice said, “These figures show that a person needs to earn a considerable wage for their household to live the UK’s ‘average’ life. People often feel under pressure to have the newest and best things, never mind just the ‘average’. So it’s not surprising that people can easily overspend and find themselves in debt trouble very quickly.”
Information provided by IVA Advice
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