Caught in the middle: why ‘earning enough’ still isn’t enough

The cost of living is still biting. Inflation remains above target, and pay growth is slowing. According to the Office for National Statistics (ONS), wages grew by just 0.5% after inflation between November and January 2026, a five-year low.

For many households, this creates a frustrating reality. You may be earning more on paper, but it doesn’t feel like it. And while support is often aimed at those on the lowest incomes, a growing number of middle earners are quietly struggling to keep up.

Support is increasing

To ease pressure, the government has introduced several measures from April 2026:

• The national living wage has risen to £12.71, benefiting around 2.4m workers, according to government figures.
• The national minimum wage has increased to £10.85, boosting incomes for younger workers.
• In February the regulator Ofgem announced the energy price cap will drop by 7% in April. For a typical dual-fuel household, that means bills could fall by around £117 a year, bringing the average to £1,641. The new price cap will run until 30 June 2026.
• A new Crisis and Resilience Fund offers cash-first support, providing low-income households with Crisis Payments and Housing Payments.
• Councils have received funding to strengthen local support for low-income households.
• Prescription charges remain frozen, keeping costs below £10 per item.

These changes will help many, especially those on lower incomes. But they don’t fully address the pressure on households in the middle. 

The squeeze on middle earners

The latest figures show how tight things have become. According to the ONS, median monthly pay reached £2,588 in early 2026, around £31,000 annually before adjustments, reflecting modest growth but not enough to offset rising costs.

At the same time, the Joseph Rowntree Foundation’s minimum income standard for 2025 suggests a couple with two children needs at least £74,000 a year to reach a minimum acceptable standard of living.

So where does that leave you if you earn around the average?

Research by Go.Compare in February found 88% of people in the UK say they are struggling with living costs, around 48 million people. Of those, 45% said things have got worse over the past year.

Those on lower incomes are still hit hardest. Around 88% of households earning £25,000 or less reported being affected, with more than half saying they are worse off than last year.

But the pressure doesn’t stop there. Among households earning between £35,000 and £45,000, roughly around the national average, 91% said they are also feeling the impact of rising costs.

In other words, this isn’t just a low-income issue. Many households that were once financially stable are now finding it difficult to stay on top of bills, rent, and childcare.

What needs to change

There’s no single fix, but there are clear areas where change could make a real difference for working families:

• better, more flexible parental leave
• affordable, high-quality childcare
• easier access to flexible working

There is some help already available. In England, eligible working families can access up to 30 hours of free childcare per week for children aged 9 months to 4 years. To qualify, each parent must earn at least the equivalent of 16 hours a week at the national living wage and less than £100,000 a year.

Still, many families fall just outside support thresholds, earning too much to qualify for help, but not enough to feel secure.

While support for lower-income households is essential, middle earners are increasingly caught in the gap between rising costs and limited support.

If you’re feeling that pressure, it’s worth checking what help you might still be entitled to. You may be missing out on support that could make a difference.

We can help you check you’re claiming everything available to you, so get in touch or try our benefits calculator.