London, UK – Middle-income households across Britain are facing mounting financial pressure as the country’s tax burden reaches its highest level in decades. Economists and policy experts warn that working families are being “squeezed from all sides,” with stagnant wages, high inflation, and record tax rates eating into disposable income.
Rising Tax Burden Hits Families Hard
According to recent analysis, the UK’s overall tax take as a share of national income is at its highest since the 1940s. Income tax thresholds have been frozen, meaning more workers are being dragged into higher tax brackets through “fiscal drag.” At the same time, National Insurance contributions and rising council tax bills are tightening the grip on middle earners.
For many, the result is the same: less money left at the end of the month. Experts say this is particularly painful for households earning between £30,000 and £70,000 a year — a group often described as the backbone of the British economy.
Cost of Living Compounds the Strain
The ongoing cost-of-living crisis has intensified the tax squeeze. Rising food prices, high energy bills, and soaring rents or mortgage payments are leaving families with little room to breathe. Analysts say that, unlike wealthier households with savings buffers, middle-income Britons have fewer options to offset higher costs.
Dr. Laura Evans, an economist at the Institute for Fiscal Studies (IFS), explained:
“This is one of the most punishing tax environments for middle-income families in decades. Combined with stagnant real wages, it is creating a sense of permanent financial insecurity.”
Political Fallout
The growing discontent has sparked heated debate in Westminster. The Conservative government argues that tax rises were necessary to stabilise public finances after the pandemic and the energy crisis. However, opposition parties have accused ministers of unfairly burdening working households while failing to tackle wealth inequality.
Labour has pledged to review tax thresholds and promises a “fairer distribution” of the tax burden, though it has stopped short of committing to major tax cuts. With a general election looming, the issue is set to dominate the political agenda.
Public Sentiment
Many Britons say they are struggling despite being in stable jobs. A 39-year-old teacher from Birmingham said:
“I work full time, my partner works full time, and yet we’re constantly worrying about bills. It feels like we’re paying more taxes but getting less back in return.”
This growing frustration could become a key factor in shaping voter behaviour at the next election.
FAQs
Q1: Why are middle-income Britons paying more tax?
A1: Frozen income tax thresholds and rising National Insurance contributions mean more workers are being pushed into higher tax brackets, a phenomenon known as fiscal drag.
Q2: Which income group is most affected?
A2: Households earning between £30,000 and £70,000 are facing the sharpest squeeze.
Q3: How does the cost-of-living crisis make it worse?
A3: Inflation has increased food, energy, and housing costs, leaving families with little disposable income after paying taxes.
Q4: What is the government’s stance?
A4: Ministers say tax rises are necessary for financial stability, though critics argue middle-income households are unfairly targeted.
Q5: Could taxes be reduced soon?
A5: While both major parties acknowledge the pressure, significant tax cuts appear unlikely in the short term due to budget constraints.
