debswen Is it correct to say "the family are the happiest " ? Yes. It's chiefly British usage.
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debswenIs it correct to say "the family are the happiest"?Yes. It's chiefly British usage. It considers the members of the family each being the happiest under the conditions described. It's called the notional plural.
debswen"The family are the happiest when they have a bit of spare money...".That would sound more natural to me without the 'the' before 'happiest'.