C4 poll reveals only 2% of Britons know how rich they really are

10 November 2014

In a new poll commissioned by Channel 4, people in the UK were asked to guess how their income compared with the rest of the country’s, and then answer a series of questions to calculate the true result. Only 2% of the people surveyed guessed correctly.

The poll was commissioned to accompany How Rich Are You (1 x60) which airs at 8pm on the 10th November. Presented by Richard Bacon, this one-off special will show each of us where we stand in the great money map of Britain - and what that position means. With the help of leading experts, a studio audience and individual case studies, the show builds up a shocking and surprising portrait of the country that is now – officially – the most unequal in Europe.

Alongside the programme, the channel has launched a website app which will enable every viewer to take the ‘How Rich Are You’ test at home. Visitors to channel4.com/howrichareyou can answer a set of simple questions to determine if they are as rich or as poor as they think they are. The data for the app has been provided by the Institute for Fiscal Studies.

As many as 67% of the people surveyed underestimated their income compared by more than 10%, indicating a serious lack of understanding as to the economic state of the nation. Only 7% of people overestimated their income compared to the UK – but nobody overestimated by more than 10%. Just 2% correctly estimated their level of income vs the UK population.

The survey reveals that despite the struggles of the current economic climate, 75% of adults say that they manage financially, with 16% stating they struggle to get by.

Despite this there is still a bleak picture of life in 2014, as 61% feel that life in Britain has worsened over the last 20 years. Just 13% feel that life has improved.

The survey shed light on our embarrassment at talking about money. It revealed that 31% of adults surveyed would not be happy to discuss how much money they earn with family and friends, while 19% are not sure how they feel about it.

Interestingly, it is younger people who are more willing to discuss finances, with 60% of those aged 16-24 happy to talk about how much money they make.

When asked about inequality across the UK, the majority of adults (84%) think that the wealthy should pay higher taxes.

Those that feel they have enough money in their household (rating themselves as ‘well off’) feel less strongly on this matter, but still display strong agreement at 73%.

The survey also asked people about average salaries of other professions including a nurse, MP, care worker and average CEO. The results were fascinating with 70% of people overestimating the salaries of a CEO and more than half overestimating the salaries of an MP.

• An average Nurse in the UK earns just over £26,000. Half of the adults that we spoke to correctly chose this amount, a quarter over estimated how much they earn, while a further quarter under-estimated their wage. Interestingly, those who were struggling in their household underestimated a nurse’s wage the most, while those that were well off overestimated their wage the most.
• Just 27% of adults correctly knew an MPs current wage of £66,400, while a further 31% thought that MPs were on their soon to be higher wage of £72,000.  A further 26% thought that they were paid nearly £20,000 more than their current wage.
• An average care worker in the UK earns just under £13,000, 42% of adults correctly chose their wage. 50% thought that their earnings were at least 30% higher.
• An average CEO in the UK earns an annual income of just under £118,000. Just 13% of the adults we spoke to correctly picked this amount, the majority (70%) thought their wage was significantly higher.

Dr Fazia Shaheen, Economist and expert on How Rich Are You? commented: “These numbers serve as a reminder of how little we understand about each other’s lives. We are failing to see the bigger picture – too busy trying to get by on our own wages to notice the growing gap between the very rich and the rest of us.”

John Hay, Commissioning Editor for Channel 4 commented: ““I’m convinced that years from now we will look back on the growing gap between rich and poor as the most significant issue of our age, and I think there’s a real hunger to understand it better (as well as to find out how much our neighbours earn). Richard and the team at Electric Ray have a gift for making important television that doesn’t feel like homework, so I hope this will be both revelatory and addictive viewing.”

ENDS

 

For more information please contact: Katherine Solomon, PR Manager Factual and Arts, Channel 4 Press Office

Notes to Editors

A survey on actual and perceptions of income

• Nationally Representative Sample of 1011
• Fieldwork Dates – 10th -17th October
• Online Survey with research agency Otherlines

Household Finances

• Three quarters of adults state that they are getting by financially but would need to be careful or borrow to make large purchases. 7% state that they do not have to think about money regardless of what they would like to purchase, whereas 16% state that they do not have enough money in their household.

 

Question. Which ONE of these statements best describes the financial situation in your household?	Base: All respondents
I have enough money in my household but I still need to be careful when making large purchases	53%
I have enough money in my household to get by but would need to borrow to pay for large purchases or repairs	24%
I often do not have enough money in my household to last until the next time I/we get paid	14%
I have enough money in my household that I don’t have to think about it, regardless of any purchase I wish to make	7%
I do not have money to afford food and clothing in my household	2%

 

• Despite this fact, 61% feel that life in Britain has worsened over the last 20 years. Just 13% feel that life has improved.

Question: In your opinion, over the last 20 years, do you think life in Britain has become better, worse or stayed the same?	Base: All respondents
Better	13%
Stayed the Same	19%
Worse	61%
Not Sure	6%

 

How Rich Are You?

 

This was calculated using the same calculations as in the app, as agreed with the IFS

• Of the 868 people that took part in the income calculation, 91% of people underestimated how wealthy they were compared to the rest of the UK. And in fact, 67% underestimated their income by more than 10%.
• Only 7% of people overestimated their income compared to the UK – but nobody overestimated by more than 10%. Just 2% correctly estimated their level of income vs the UK population.

Estimation of income	Base: Those who said 'Yes' to having income estimated
Underestimated income	91%
Overestimated income	7%
Underestimated income by 10% or less	24%
Underestimated income by more than 10%	67%
Overestimated income by 10% or less	7%
Correct estimation	2%

 

 

• Open discussion about money and earnings divides opinion. 51% of adults would be happy to talk about money and how much they earn with family and friends, however the rest would not be happy or are not sure how they feel about it. Interestingly those aged 16-24 are the happiest age group to talk about earnings at 60%.

Question. Would you be happy to talk about money and how much you earn with your family and friends?	Base: All respondents
Yes	51%
No	31%
Not sure	19%

 

Inequality?

 

• The majority of adults (84%) think that the wealthy should pay higher taxes. Those that do not have to think about money regardless of what they would like to purchase feel less strongly on this matter, however agreement is still high at 73%.

Question. Do you think those that are wealthy should pay higher taxes?	Base: All respondents
Yes	84%
No	16%

 

Average Wages

All average wage data that we used for this section is based on an end of year 2013 Office of National Statistics Study.

 

We asked people what they thought the average wage was for 4 different job types –

• An average Nurse in the UK earns just over £26,000. 48% of the adults that we spoke to correctly chose this amount, 23% over estimated how much they earn, while 29% under-estimated their wage.

Question. We are now going to ask you some questions about average UK annual salaries. How much do you think an average nurse in the UK earns per year? Please pick from the following options:	Base: All respondents
£20,500	29%
£26,100	48%
£29,400	17%
£35,200	5%
£42,500	1%

 

 

• Just 27% of adults correctly knew a MP’s current wage of £66,400, while a further 31% thought that MP’s were on their soon to be higher wage of £72,000.  A further 26% thought that they were paid nearly £20,000 more than their current wage.

Question. And how much do you think an average MP earns at present per year? Please pick from the following options:	Base: All respondents
£35,500	2%
£48,700	5%
£57,300	9%
£66,400	27%
£72,000	31%
£83,500	26%

 

 

• An average care worker in the UK earns just under £13,000, 42% of adults correctly chose their wage. 48% thought that their earnings were at least 30% higher.

Question. How much do you think an average care worker earns in a year? Please pick from the following options:	Base: All respondents
£7,400	11%
£12,800	42%
£16,500	30%
£18,200	13%
£21,100	5%

 

• An average CEO in the UK earns an annual income of just under £118,000. Just 13% of the adults we spoke to correctly picked this amount, the majority (69%) thought their wage was significantly higher.

Question. And finally, how much do you think an average company chief executive earns per year? Please pick from the following options:	Base: All respondents
£65,000	2%
£82,300	5%
£105,500	11%
£117,700	13%
£137,200	22%
£154,500	47%