Regional Gross Disposable Household Income (GDHI)
In 2009, regional GDHI per head was above the UK average (£15,333) in three regions: London (£19,658); the South East (£17,292); and East of England (£15,939). The lowest GDHI per head was in the North East (£13,026).
|NUTS1 Regions||GDHI per head (£)||GDHI per head growth on 2008 (%)||GDHI per head index (UK=100)||Total GDHI2 (£m)||Total GDHI growth on 2008 (%)||Share of UK total GDHI (%)|
|United Kingdom3||15 333||2.5||100.0||948 521||3.2||100.0|
|North East||13 026||3.4||85.0||33 663||3.9||3.5|
|North West||13 825||2.8||90.2||95 361||3.2||10.1|
|Yorkshire and The Humber||13 334||1.5||87.0||70 110||2.3||7.4|
|East Midlands||14 004||2.2||91.3||62 334||2.7||6.6|
|West Midlands||13 722||3.1||89.5||74 527||3.6||7.9|
|East of England||15 939||2.0||103.9||91 912||2.9||9.7|
|London||19 658||2.1||128.2||152 417||3.3||16.1|
|South East||17 292||2.8||112.8||145 873||3.7||15.4|
|South West||15 140||2.7||98.7||79 200||3.2||8.3|
|England||15 545||2.5||101.4||805 398||3.2||84.9|
|Wales||13 484||2.6||87.9||40 443||2.9||4.3|
|Scotland||14 908||2.9||97.2||77 432||3.5||8.2|
|Northern Ireland||13 520||0.7||88.2||24 185||1.5||2.5|
London's GDHI per head was 28.2 per cent above the UK average of £15,333 while the North East was 15.0 per cent below. London moved closer to the UK average than in 2008 when it was 28.7 per cent above the average. The North East also converged towards the average, having been 15.8 per cent below the average in 2008.
Regional per head indices
|Yorkshire and The Humber||91.8||90.8||89.7||88.4||87.9||87.0|
|East of England||106.7||107.2||106.7||105.3||104.4||103.9|
Between 2008 and 2009 the most significant changes in regional GDHI per head indices were Northern Ireland, which decreased from 89.8 to 88.2 and Yorkshire and The Humber, which decreased from 87.9 to 87.0.
Between 1995 and 2009 four regions' per head indices increased compared with the UK average. The most significant of these were London, which increased from 120.6 to 128.2, and Scotland, which increased from 95.6 to 97.2. Yorkshire and The Humber showed the greatest downward movement away from the UK average, with a decrease from 91.8 to 87.0. The per head index for Yorkshire and The Humber has not increased in any year since 1995.
These GDHI estimates are produced in accordance with the Nomenclature of Units for Territorial Statistics (NUTS), which provides a single uniform geographical breakdown for the production of regional statistics for the European Union (see background note 4). Estimates are available at three NUTS levels and are consistent with the National Accounts Blue Book 2010.
Household disposable income represents the amount of money left available within the household sector for spending or saving, after expenditure associated with income (e.g. taxes and social contributions), property ownership (e.g. interest paid on mortgages and other borrowings) and provision for future pension income. It is calculated gross of any deductions for capital consumption. For more information see background note 2.
Estimates are at current basic prices and do not allow for changes in prices over time (inflation).
Provisional estimates for 2009 are being published for the first time, along with revisions for the period 1995 to 2008. These estimates update those published in March 2010.
In 2009, the highest growth in GDHI per head was in the North East (3.4 per cent), followed by the West Midlands (3.1 per cent). The lowest growth was in Northern Ireland (0.7 per cent), followed by Yorkshire and The Humber (1.5 per cent).
In 2009, GDHI per head growth was lower than that in 2008 in all regions. The rate of annual growth decreased most in Northern Ireland (from 3.6 per cent in 2008 to 0.7 per cent in 2009).
In 2009, total GDHI increased in all UK regions. The highest growth was in the North East (3.9 per cent) and the lowest in Northern Ireland (1.5 per cent). These compare with the total UK growth of 3.2 per cent.
In 2009, the rate of annual growth was lower than that in 2008 in each region. The rate of growth decreased most in Northern Ireland (from 4.5 per cent in 2008 to 1.5 per cent in 2009).
London and the South East had the largest increases in regional share of UK GDHI between 1995 and 2009 (from 14.3 per cent to 16.1 per cent and from 14.9 per cent to 15.4 per cent respectively). The largest decrease in share over this period was in the North West, from 10.8 per cent to 10.1 per cent. Extra-Regio accounted for 0.1 per cent of UK GDHI in 2009.
|NUTS2 Sub-regions||GDHI per head (£)||GDHI per head growth on 2008 (%)||GDHI per head index (UK=100)||Total GDHI (£m)||Total GDHI growth on 2008 (%)|
|United Kingdom3||15 333||2.5||100.0||948 521||3.2|
|Top five GDHI per head|
|Inner London||22 939||1.6||149.6||70 220||2.6|
|Surrey, East & West Sussex||18 655||2.9||121.7||49 891||3.6|
|Berks, Bucks & Oxon||18 101||2.0||118.1||40 287||3.1|
|Outer London||17 517||2.6||114.2||82 197||3.8|
|Beds & Herts||17 300||1.2||112.8||29 423||2.2|
|Bottom five GDHI per head|
|East Yorks & Northern Lincs||13 077||2.2||85.3||12 000||2.5|
|West Yorkshire||12 968||1.4||84.6||28 875||2.3|
|Tees Valley & Durham||12 890||3.7||84.1||15 041||4.0|
|South Yorkshire||12 711||1.7||82.9||16 745||2.5|
|West Midlands||12 440||3.4||81.1||32 826||4.1|
In 2009, of the 37 NUTS2 sub-regions, 14 were above the UK average GDHI per head, including all those within London and the South East. Inner London had the highest GDHI per head (£22,939), followed by Surrey, East and West Sussex (£18,655). The West Midlands had the lowest (£12,440), followed by South Yorkshire (£12,711).
Within the five NUTS2 sub-regions with the highest GDHI per head, the rate of annual growth decreased most notably in Inner London (from 4.8 per cent in 2008 to 1.6 per cent in 2009). Within the five sub-regions with the lowest GDHI per head, the rate of annual growth decreased most notably in West Yorkshire (from 2.9 per cent in 2008 to 1.4 per cent in 2009).
In 2009, the rate of annual growth in GDHI per head was lower than that in 2008 in all NUTS2 sub-regions except for the West Midlands (from 3.3 per cent to 3.4 per cent) and Cornwall and Isles of Scilly (from 4.3 per cent to 4.4 per cent). The largest decrease in the rate of annual growth was in North Eastern Scotland (from 4.5 per cent in 2008 to 1.3 per cent in 2009).
In 2009, total GDHI grew in all NUTS2 sub-regions, with the highest growth in Cornwall and Isles of Scilly and Highlands and Islands both at 4.7 per cent.
In 2009, the rate of growth in total GDHI slowed in every NUTS2 sub-region except for the West Midlands (which increased from 4.0 per cent in 2008 to 4.1 per cent in 2009). The largest decreases occurred in Inner London (from 5.7 per cent in 2008 to 2.6 per cent in 2009) and Northern Ireland (from 4.5 per cent in 2008 to 1.5 per cent in 2009).
|NUTS3 Areas||GDHI per head (£)||GDHI per head growth on 2008 (%)||GDHI per head index (UK=100)||Total GDHI (£m)||Total GDHI growth on 2008 (%)|
|United Kingdom3||15 333||2.5||100.0||948 521||3.2|
|Top five GDHI per head|
|Inner London - West||32 069||1.0||209.2||35 865||2.0|
|Surrey||21 419||1.7||139.7||23 842||2.9|
|Buckinghamshire CC||20 471||1.9||133.5||10 126||2.6|
|Hertfordshire||18 704||0.9||122.0||20 489||2.0|
|Outer London - West & North West||18 639||2.1||121.6||34 091||3.4|
|Bottom five GDHI per head|
|Portsmouth||11 693||3.4||76.3||2 380||5.5|
|Blackburn with Darwen||11 234||3.0||73.3||1 572||3.4|
|Leicester||11 163||3.2||72.8||3 402||3.5|
|Kingston upon Hull, City of||10 783||2.6||70.3||2 830||3.2|
|Nottingham||10 602||2.5||69.1||3 189||3.9|
In 2009, of the 133 NUTS3 areas, 39 were above the UK average GDHI per head. Inner London - West had the highest GDHI per head (£32,069), followed by Surrey (£21,419). Nottingham (£10,602) had the lowest, followed by Kingston upon Hull (£10,783).
Within the five NUTS3 local areas with the lowest GDHI per head, their respective rates of annual growth were generally similar in 2009 to those in 2008. By contrast, within the five areas with the highest GDHI per head there was greater change in their rates of annual growth in 2009 and in all five areas the rate of growth slowed.
In 2009, GDHI per head increased in each of the 133 NUTS3 areas except for West and South of Northern Ireland, which decreased by 0.3 per cent.
At NUTS3 level, the largest increase in the rate of annual growth was in Isle of Wight (from 3.6 per cent in 2008 to 5.7 per cent in 2009). The largest decrease was in Inner London - West (from 5.2 per cent in 2008 to 1.0 per cent in 2009).
In 2009, total GDHI grew in all NUTS3 areas, with the highest growth in Isle of Wight (5.7 per cent) followed by Portsmouth (5.5 per cent). The lowest growth was in West and South of Northern Ireland (0.8 per cent). In 2009, the rate of growth in total GDHI increased most in Isle of Wight (from 4.2 per cent in 2008 to 5.7 per cent in 2009).
Updates to the regional household income estimates in this release cover the period 1995 to 2008. The main reasons for updates since the March 2010 publication are:
revisions to the national estimates for the UK (National Accounts Blue Book 2010)
replacing provisional estimates with actual data, for example, latest available HMRC pay-as-you-earn data replacing previously used estimates back to 2006/07
ONS mid-year estimates of population data have been revised back to 2002, causing revisions to GDHI estimates
ONS plans to publish estimates of Regional Gross Value Added (GVA) for 2010 in December 2011. Estimates will be compiled on a SIC2007 basis (Standard Industrial Classification 2007). The SIC2007 replaces the SIC2003 structure and has been developed in parallel with the revision of the EU industrial classification (NACE Rev.2).
New estimates of regional GDHI for 2010 will be published in Spring 2012.
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The estimates presented in this release are consistent with the data published in the 2010 edition of the UK National Accounts, the National Accounts Blue Book, which also defines the terms used.
The Household Sector
The household sector covers people living in traditional households as well as those living in institutions (such as retirement homes and prisons). The sector also includes sole trader enterprises and non-profit institutions serving households (NPISH). Examples of the latter include charities and most universities.
Total gross disposable household income is derived from the balances of primary and secondary income:
Balance of Primary Income
+ Balance of Secondary Income
Gross Disposable Household Income
The balance of primary income is the difference between total primary resources and uses.
Total Primary Resources
- Total Primary Uses
Balance of Primary Income
Total primary resources: compensation of employees (all income from employment), operating surplus (mainly rental, imputed or otherwise, in the household sector), mixed income (income from self-employment) and property income received.
Total primary uses: property income paid.
The balance of secondary income is derived from total secondary resources less uses.
Total Secondary Resources
- Total Secondary Uses
Balance of Secondary Income
Total secondary resources: social benefits received, other current transfers received (financial gifts, non-life insurance claims etc).
Total secondary uses: current taxes on income and wealth (income tax, council tax), social contributions paid (employees pension/social security contributions), other current transfers paid.
Basic quality information
The Summary Quality Report for regional GDHI (343.7 Kb Pdf) can be found at on the ONS website. This report describes the intended uses of the statistics presented in this publication, their general quality and the methods used to produce them.
Relevance to users
The Nomenclature of Units for Territorial Statistics (NUTS) provides a single uniform geographical breakdown for the production of regional statistics for the European Union. Regional Accounts publishes GDHI figures at three NUTS levels:
NUTS1: 9 English regions and Wales, Scotland, Northern Ireland
NUTS2: 37 areas - mainly groups of counties and unitary authorities; can be referred to as sub-regions
NUTS3: 133 areas - principally individual counties and unitary authorities; also known as local areas
Some areas appear at more than one level. For example, Northern Ireland appears at NUTS1 and NUTS2 levels and Lincolnshire appears at NUTS2 and NUTS3 levels.
Per head data takes account of the entire population of regions, including sub-regions and local areas. The working population and the economically inactive are included.
The GDHI estimates presented here are on a residence basis. This means that incomes of individuals are allocated to the region in which they live.
Estimates are at current basic prices and do not allow for changes in prices over time (inflation) or differences in regional price levels (purchasing power).
The headline regional GDHI series have been calculated using a five year moving average technique. These adjusted series remove some year to year volatility in the unadjusted series.
Unadjusted GDHI estimates (that is, annual unsmoothed data) and components at NUTS2 will be supplied to Eurostat. These data are not directly used to inform funding decisions but may support arguments in the debate around the relative welfare of regions across the UK and the EU area. The unadjusted series are also provided for information on the ONS website.
The contribution to regional household income of UK embassies abroad and UK forces stationed overseas, which cannot be assigned to specific regions, is included in the Extra-Regio category.
At component level in 2009 there has been a notable reduction across all regions in property income received (resources) and property income paid (uses). This can be traced to the national estimates for the UK (National Accounts Blue Book 2010), where large falls occurred in the national property income received and paid. These falls can be attributed to the impact of the financial crisis upon the FISIM adjustments applied within the Households & NPISH sector.
Common pitfalls in interpreting series
Very few statistical revisions arise as a result of errors in the popular sense of the word. All estimates, by definition, are subject to statistical error but, in this context, the word refers to the uncertainty in any process or calculation that uses sampling, estimation or modelling. Most revisions reflect either the adoption of new statistical techniques or the incorporation of new information which allows the statistical error of previous estimates to be reduced. Only rarely are there avoidable errors such as human or system errors and such mistakes are made clear when they are discovered and corrected.
Figures for the latest year are provisional and the whole series are subject to revisions.
As with the national accounts, regional, sub-regional and local GDHI estimates are calculated as reliably as possible. There is no easy way to measure the reliability of the estimates but ONS carries out consistency checks on data inputs, applies methods consistently and makes use of local knowledge about each region. The estimates are partly based on sample surveys and the quality of the results therefore varies according to sample size. This means that the results for smaller regions are subject to a greater degree of uncertainty than those for larger regions.
The main reasons for updates since the March 2010 publication are revisions to the national estimates for the UK (National Accounts Blue Book 2010) and updates to source data.
Revisions to the total GDHI estimates for the latest previously published year (2008) are shown below:
|Region||Total revision||Revision due to national estimates||Other revision|
|Yorkshire and The Humber||0.3||0.7||-0.4|
|East of England||0.5||0.6||-0.1|
Notes on tables
Rounding: the sum of constituent items in tables may not always agree exactly with the totals shown due to rounding.
- Nil or less than half the final digit shown.
The complete run of data in the tables of this Statistical Bulletin is also available to view and download in other electronic formats free of charge using the ONS Time Series Data website service. Users can download the complete release in a choice of zipped formats, or view and download their own selections of individual series. The Time Series Data service can be accessed on the ONS website.
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