Financial experts now argue that earning £100,000 a year no longer qualifies as a high salary in the UK, particularly in London, due to inflation, frozen tax thresholds, and soaring property prices. According to Freddie Winter of Gratitude Financial Planning, the six-figure sum has become the threshold for 'struggling' in the capital, a stark contrast to its former status as the ultimate marker of professional success.
New benchmarks proposed for high earnings
Winter suggests a new metric: a high salary should be four times the national average. Based on the latest Office for National Statistics (ONS) data, this would equate to £154,128 annually, rising to £187,200 in London. He told Metro: 'I work with a lot of professionals in your typical high-earning careers earning over that threshold, and the overriding feeling is “it shouldn’t be this hard”. £100,000 is no longer considered a high salary.'
Chartered accountant Abigail Foster places the threshold slightly lower, between £75,000 and £100,000. She notes that while ONS figures show a median monthly salary of £2,588, earning over £80,000 puts a worker in the top 10% of UK earners. Foster highlighted the concept of HENRYs (High Earners Not Rich Yet), saying: 'These are professionals on big salaries who still feel financially stretched because of housing costs, childcare, student loans and lifestyle inflation, particularly in London and the South East.'
Tax traps and the real cost of earning more
Foster also warned of a 'tax reality' that catches many off guard. 'For every £2 you earn over £100,000, you lose £1 of tax-free allowance,' she explained. 'That creates an effective 60% marginal tax rate between £100,000 and £125,140. It catches people out all the time. But feeling wealthy depends far more on your costs, location, and whether you’re building assets, not just earning income.'
According to the ONS, the average median monthly salary as of January 2026 is £2,588, which works out as £30,696 per year before tax. For those paid weekly, the average is £735 per week, or £38,532 per annum without deductions. In contrast, the nation's top earners saw a median annual pay of up to £4.58 million for the 2024/2025 financial year.
Wealth is more than a number, says financial specialist
Financial specialist Vivian Tu, founder of Your Rich BFF, believes earning £75,000 used to be the 'gold standard', but it has lost its status. Instead of focusing on a specific figure, she offers an alternative perspective on wealth. Tu, author of Well Endowed: The Secrets to Strategic Spending, told Metro: 'These days, I’d say a high salary varies based on where you live and frankly, isn’t necessarily a number, but rather how many of your “buckets” you can fill. Does your income allow you to cover all of your basic necessities? Does your income provide you with a discretionary spending budget that helps you feel like you are thriving or just surviving? Does your income allow you to protect your future by saving for emergencies, paying down your debts, and maxing out all of your retirement investments?'
If you can do all of this, Tu argues, then you are successfully making money and living a life you should be proud of. The article was originally published in March 2026 and has since been updated.
