The City of London, 21 November 2025. A new financial reality is emerging for high-earning professionals in the capital, where even a £100,000 salary no longer guarantees the prosperous lifestyle once associated with such income levels.
The Rise of the 'Henrys'
Gone are the days of the 1980s 'yuppies' – those young urban professionals who symbolised economic success during the Thatcher era. Today, we have the 'Henrys' – high-earning, not rich yet – a demographic facing unexpected financial constraints despite their substantial salaries. This shift reveals much about changing economic circumstances in modern Britain.
The £100,000 Threshold Problem
For London-based Henrys, crossing the £100,000 salary mark triggers significant financial disadvantages. The personal allowance begins to taper away, with £1 lost for every £2 earned above this threshold, effectively creating a higher marginal tax rate. More crucially, they lose access to valuable childcare support – 30 hours of free childcare for children aged nine months to four years, plus £2,000 annually for under-12s.
Additionally, those who started university after 2006 face prolonged student loan repayments, creating clear disincentives against pursuing higher earnings beyond certain levels. The consequence? Many high earners are reportedly declining promotions, reducing working hours, or maximising pension contributions through salary sacrifice arrangements – though this latter option faces restrictions from 2029 following recent budget changes.
The London-Specific Reality
This discussion about £100,000 salaries being insufficient is fundamentally a London and south-east England phenomenon. In northern cities like Bolton or Liverpool, such income would provide substantial purchasing power and comfortable living standards. Even within London, where only the top 4% of earners reach this salary level, the notion of £100,000 representing economic hardship seems extraordinary when compared to the UK median full-time salary of £39,039.
Yet beneath what might appear as privileged complaining lies a revealing truth about declining living standards in the capital. The frustration expressed by high earners speaks volumes about what it now takes to build a good life in London, where traditional markers of success have become increasingly elusive.
The Housing Crunch
Where Henrys feel the pinch most acutely is in housing. London-dwelling professionals face what many describe as a 'cowboy rental market', where substantial portions of their income disappear into rent payments. When considering property purchase, they confront average house prices of £553,000 – a figure that has dramatically outpaced income growth over recent decades.
Those who manage to save for deposits discover their purchasing power has diminished significantly compared to previous generations. Many settle for leasehold flats with unpredictable ground rent and service charge increases, representing a substantial downgrade from the property options available to earlier professionals on similar or lower incomes.
Changing Expectations and Delayed Milestones
The assumption of smooth transitions to parenthood and family life that characterised previous generations has evaporated. Today's high earners delay major life milestones that their parents embraced more readily, creating genuine intergenerational disparities in living standards.
Perceptions of wealth matter profoundly. When one generation compares their circumstances with their predecessors and finds themselves worse off despite higher nominal earnings, feelings of being hard done by become understandable – even if their absolute living standards remain comfortable by broader measures.
Broader Economic Implications
While Henrys might not be the most deserving recipients of public sympathy, their situation illuminates troubling economic trends. The complaint about £100,000 salaries being insufficient represents more than just privileged grievance – it signals an economy working for progressively fewer people.
This reality raises fundamental questions about aspiration and reward. Why pursue university education? Why relocate to major cities for career advancement? Why work harder when the tangible benefits continue to diminish? These questions have profound implications for social mobility and economic dynamism.
Perhaps most significantly, the frustration of this influential demographic raises important political questions. As high-earning professionals feel increasingly squeezed despite their substantial incomes, their potential political responses could reshape policy debates around taxation, housing, and economic fairness in ways that affect all citizens.
The Henry phenomenon ultimately reveals how even excellent salaries now struggle to deliver the lifestyle and security that previous generations achieved with good wages. This represents not just individual adjustment but systemic change – with consequences that extend far beyond London's high-earning professionals.
