On 31 July 2012 ONS published its 2012 Q1 edition of The Economic Position of Households via a web article.
Issue date: 01 August 2012
The article presents statistics on actual household income and expenditure per head, which are calculated using data on in kind benefits from the state and the mid year population as the denominator.
The analysis investigated the drivers of the fall in both series and concluded that the main reason was because of inflation. The second driver mentioned was weakened growth in actual household incomes on a current price basis. Finally, the article made the point that population growth over the period led to reduced growth in the per head series. The article states "Finally, sustained population growth led to incomes being spread across a greater number of people, and therefore further reduced the growth of actual income per head over the period."
This was intended only as an arithmetic proposition, given that population is the denominator of the income per head series. To avoid possible confusion, ONS would like to clarify that the above statement did not intend to infer a conclusion on any causal link between average income and population growth.