How much money is classed as low income?

Low income is generally defined as living in a household earning less than 60% of the national median (middle) income, adjusted for household size (equivalised), though specific figures vary by country and whether housing costs are included. For example, in the UK (late 2024/early 2025), this might be around £20,400 for a couple with no children before housing costs, or £17,600 after. It's a relative measure, indicating income below the typical standard, often used as a poverty indicator.

What counts as low income in the UK?

Low pay: an introduction

Low pay is defined every year in relation to the cost of living by the Minimum Income Standard Project. By their calculations, for a single person household anything less than £28,000 a year, before tax, counts as low pay.

Is 25k low income in the UK?

In September 2023, Joseph Rowntree Foundation calculated that a single adult in the UK in 2023 needs at least £29,500 a year to have an acceptable standard of living, up from £25,000 in 2022. Two partners with two children would need £50,000, compared to £44,500 in 2022.

What counts as being low income?

Generally, low income is considered to be 50% or less of area median income, moderate income is 80% of area median income.

Is 30k enough to live alone?

You aren't affording your own apartment in London on 30k. You'll be flat sharing and probably most of your salary will be going on it. They won't rent it to you on that salary even if you could “technically” afford it.

This Is Why You're Still A Poor Person

What is absolute low income in the UK?

Absolute poverty measures the number and proportion of individuals who have household incomes 60% below the median average in 2010/11, adjusted for inflation. It is used to look at how changes in income for the lowest income households compare to changes in the cost of living.

What is classed as low paid?

Low pay is defined as pay below two-thirds of median hourly earnings and high pay is defined as pay that is higher than 1.5 times median hourly earnings. In April 2025, low pay was pay below £11.97 (two-thirds of median hourly pay) and high pay was pay higher than £26.94 (1.5 times the median hourly pay).

How much do you take home if you earn 25k?

Calculation details

On a £25,000 salary, your take home pay will be £21,519.60 after tax and National Insurance. This equates to £1,793.30 per month and £413.84 per week. If you work 5 days per week, this is £82.77 per day, or £10.35 per hour at 40 hours per week.

How much a week is classed as low income?

Households with an income of less than £296 a week are considered to be in relative low income, according to the latest Government statistics. The report shows that the mean UK household income is £594 per week.

What is considered low income in the UK in 2025?

In 2025, we have updated budgets for all households based largely on price changes as captured through the Consumer Prices Index (CPI). A single person needs to earn £30,500 a year to reach a minimum acceptable standard of living in 2025. A couple with 2 children needs to earn £74,000 a year between them.

What's classed as a low-income family?

Households are classed as being in low income if they live on less than 60% of the median net disposable equivalised UK household income. For example, in the year ending March 2024, a couple with no children would be in low income with an annual household income of: up to £20,400 before housing costs.

Am I classed as low income in the UK?

The UK poverty line - Households are considered to be below the UK poverty line if their income is below 60% of the median household income after housing costs for that year.

What are the 4 levels of income?

The World Bank classifies economies for analytical purposes into four income groups: low, lower-middle, upper-middle, and high income.

What is officially low income?

A broad definition of low household income, as suggested by the Government, applies to annual earnings less than 60% of the median UK household income. For London, this cut-off point is approximately £21,000[75].

What are the 4 types of poverty?

There are four kinds of poverty typically discussed: absolute, relative, situational, and generational.

What is the minimum salary to live comfortably?

The salary a single person needs to live comfortably in all 50 U.S. states—it's over $120,000 in 2 places.

What is a reasonable budget for a single person?

The average monthly expenses for one person can vary, but the average single person spends about $4,641 per month. Housing tends to consume the highest portion of monthly income, with the average cost for one person coming in at about $1,684 per month.

How much does a single person need to live on?

As the results show, if you're a single person with no children you should be able to live comfortably in the UK on a salary of just over £28,000, while a child-free couple could live comfortably on a combined income of around £40,000.