Skip to content

5 facts about taxes and benefits

Find out how taxes and benefits affect household income in the UK

1. Before taxes and benefits, the average income of the richest fifth of households was x15 higher than the poorest fifth, in 2012/13.  This gap falls to 4-to-1 after taxes and benefits.


2. 52% of households received more in benefits (including in-kind benefits such as education/NHS) than they paid in taxes, in 2012/13.


3.  Since the start of the economic downturn in 2007/08, the average disposable income has decreased for the richest fifth of households but increased for the poorest fifth.


4. Cash benefits made up over half (56.4%) of the gross income of the poorest fifth of households, compared with 3.2% of the richest fifth, in 2012/13.


5. The richest fifth of households paid over six times as much tax (direct and indirect) as the poorest fifth, but both groups paid a similar % of their gross income, in 2012/13.


Categories: Economy, Personal Finances, Personal Income and Wealth, Income Inequality of Households, People and Places, Housing and Households, Households, Household Income and Expenditure
Content from the Office for National Statistics.
© Crown Copyright applies unless otherwise stated.