How rich are you? Find out how you compare in an all-UK Rich List
How rich do you think you are, compared with everyone else in the UK? Chances are you consider yourself 'in the middle', but you might think you are particularly high, or low on the list. Well, now you can find out for sure as the Institute for Fiscal Studies (IFS) launches a rich list calculator that gives you a definitive answer.
The calculator asks for details of your income, family and council tax, and gives you your place in the income distribution of the UK. The calculation is per household, so a millionaire's spouse is not considered 'poor' simply because they have no personal income. It also means that larger families need a higher income than smaller ones in order to attain the same standard of living. Naturally those premiership footballers and Russian oligarchs are going to be leading the charge, but what about normal people?
Research conducted for the Joseph Rowntree Foundation has shown that the majority of people in the UK believe that they are 'in the middle' of the income distribution. Yet in reality many of these people are miles away from the middle. From poorer people in the bottom third of the income distribution, up to people in the top five or ten per cent, many will happily report that they think they're 'in the middle.'
So what is the middle? Well, the income required to make a household fit the median depends on the family circumstances. A couple with no children would need a weekly net income of £420 (e.g. a single-earner couple with an annual salary of just over £30,000 before tax) but a couple with two children would need a weekly net income of about £640 (e.g. a single earner with an annual salary of £45,000 before tax).
In line with official Government's official poverty statistc calculations, if you fall in the bottom 17% of the list, you fall below the poverty line (quantified as 60% of the median income). This would include couples with two children with net incomes of less than £380 per week, and lone parents with two children whose net incomes are less than £300 per week. It would also include pensioner couples with weekly net incomes of less than about £250 per week.