This infographic shows some of the key findings from The Effects of Taxes and Benefits on Household Income 2011/12. This release looks at inequalities in income and the amount paid and received in taxes and benefits by households with different incomes. To do this, households are ranked from poorest to richest according to their “equivalised disposable income”, that is, their income after cash benefits received from the state and direct taxes (such as income tax and employees’ National Insurance contributions), adjusted for household size and composition. The infographic shows some key figures relating to the poorest and richest 20% of households based on this measure of income.
The Effects of Taxes and Benefits on Household Income Statistical Bulletin looks in more detail at how the tax and benefit system redistributes income, along with the reasons for recent changes in income experienced by different groups. The bulletin also looks at longer term trends in income inequality and differences in taxes, benefits and inequality for retired and non-retired households. Published alongside this bulletin is a ‘Further Analysis and Methodology’ article, which further examines some of the trends and explains in more depth the concepts involved and how the figures are calculated.