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Middle Britain: Smaller than you think

18/06/2008

'Middle Britain' is richer than ten years ago but still only represents a minority of households, research from AXA has found.

Typically a Middle Britain household has an income in the 70th – 95th percentile of all earners, or incomes 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, insurer AXA said.

Only 20 per cent of households fit the criteria – meaning a 'middle Britain' lifestyle is not enjoyed by average earners – despite the fact that one in three Brits consider themselves to be part of middle Britain.

The findings also show that while disposable income levels have increased by five per cent over the last two years, middle Britain's spending power has stagnated, dropping two per cent thanks to the high levels of inflation in essential goods and services such as fuel, food and drink and heating.

Debt advice centres in so-called middle Britain heartlands have seen as much as a 500 per cent increases in enquiries with people on salaries as high as £70,000 seeking advice.

Steve Folkard of AXA 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 – the 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."

The AXA figures show that over 30 per cent of households in London and the south east could be classified as being in middle Britain, while in other regions the proportion varies from just 14 to 18 per cent.