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Mr A


In this article, we will explore whether a £55,000 annual salary is considered good in the United Kingdom. We will delve into various factors such as the average UK income, regional variations of living costs, income tax implications, and lifestyle considerations that determine what constitutes a 'good' salary. By the end of this article, you will have a better understanding of how far £55,000 can go in the UK and the overall financial landscape.

Understanding the Average UK Income

To establish a baseline for comparison, it is essential to consider the average household income in the United Kingdom. According to the Office for National Statistics (ONS), the median gross annual household income was £30,800 in the financial year ending 2022.

Meanwhile, the median individual salary for all full-time workers in the UK was approximately £31,461 over the same period. This figure provides a helpful starting point for understanding how a £55,000 salary compares to the rest of the country. As it stands, £55,000 is well above both the median household and individual incomes.

Regional Variations in Income and Living Costs

The cost of living and average salaries can vary widely across the United Kingdom. London, being the capital city and economic powerhouse, experiences higher living expenses and wages than other areas.

According to the ONS, in the financial year ending 2022, the median household income in London was £39,200. With regards to individual earnings, the median full-time salary for Londoners was approximately £41,570. Considering a £55,000 salary, this is higher than both the median household and individual incomes in the capital.

However, it is critical to weigh these statistics against the higher cost of living in London. Higher rents, property prices, and transportation expenses can all impact how much of one's income remains for discretionary spending.

Outside London
Outside London, the cost of living is considerably lower. For example, the median household income for regions like the North East and Wales stood at £25,000 and £26,800, respectively. A £55,000 salary in these regions would be considered far above average.

Overall, it is crucial to consider both the income and cost of living for the region in which you reside when determining if your salary is satisfactory.

Income Tax and National Insurance Contributions

A considerable part of your income will be subject to deductions in the form of income tax and National Insurance (NI) contributions. Here's how a £55,000 annual salary breaks down:

Income Tax
  • £12,570 tax-free personal allowance
  • £37,700 taxed at 20% (basic rate) - £7,540 in tax
  • £4,730 taxed at 40% (higher rate) - £1,892 in tax

National Insurance Contributions
  • £9,880 NI-free Lower Earnings Limit
  • £45,120 NI-eligible earnings
  • 12% NI contribution on eligible earnings = £5,414.40

After combined income tax and NI contributions, you would be left with approximately £40,153.60 per year, or £3,346 per month.

Lifestyle Considerations

Determining if a salary is 'good' involves more than just numbers; it also encompasses personal preferences and lifestyle aspirations. To better gauge if £55,000 is a good salary in the UK for you, assess the following factors:

  • Financial Priorities: Consider your financial goals, such as buying a home, investing, saving for retirement, or paying off debt. These objectives will influence how 'good' your salary is concerning your needs.

  • Family and Financial Dependents: If you have dependents, such as a spouse, children, or aging parents, a £55,000 salary may need to stretch further. In such cases, it's crucial to budget and evaluate how this income will accommodate everyone's needs.

  • Lifestyle Choices: Examine your lifestyle preferences and whether your salary can maintain your desired quality of life. This may include leisure activities, eating out, travel, and hobbies. A higher salary will give you more financial flexibility, but a frugal and budget-conscious lifestyle can achieve satisfaction even with lower wages.

  • Location: As mentioned earlier, where you live in the UK will significantly impact living costs. An income of £55,000 will provide more financial comfort outside of London, where housing and living expenses are generally lower.

Comparison with Professional Roles

Evaluating the average incomes for various professional roles can also guide your understanding of how good a £55,000 salary is within the UK. The following data was extracted from the ONS in the financial year ending 2022:

  • Teachers and Education Professionals: £34,920
  • Healthcare Professionals (excluding doctors and dentists): £36,630
  • Architects, Town Planners, and Surveyors: £35,671
  • IT and Telecommunications Professionals: £40,775
Comparing a £55,000 salary to those listed, it is evident that the income is higher than the professional averages. This comparison provides further context for gauging the relative appeal of a £55,000 income within the UK job market.


In conclusion, a £55,000 salary in the United Kingdom is generally considered above average when compared to median household and individual incomes, as well as typical incomes within various professional roles. However, it's essential to reflect on factors such as taxes, national insurance contributions, regional cost of living variations, lifestyle choices, and personal financial priorities when determining if this salary is suitable for you.

Ultimately, while £55,000 is undeniably a solid income in the UK, individual circumstances and preferences will dictate whether it is deemed satisfactory.

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