Income and wealth

UK household income and wealth.

Spotlight

In the period leading up to the coronavirus (COVID-19) pandemic, the richest (£107,800) one-fifth of people's average household incomes before taxes and benefits was over 12 times larger than the poorest fifth (£8,500); however, this gap reduced to four times (£75,600 and £18,600 respectively) when taxes and benefits were taken into account.
Despite the redistributive power of taxes and benefits, income inequality as measured by the Gini coefficient for household income after taxes and benefits income has increased over the last 10 years, rising by an average of 0.2 percentage points per year.
The rise in inequality of household income after taxes and benefits in the last decade is largely down to the diminishing effectiveness of cash benefits to redistribute income from the richest to the poorest, coinciding with the freezing of many cash benefits at their financial year ending (FYE) 2016 values.

Income inequality in the UK has steadily increased to 36.3%, according to estimates from the Household Finances Survey; this is the highest reported measure over the 10-year period leading up to financial year ending (FYE) 2020 (April 2019 to March 2020).
However, income inequality remains lower than levels reported during the economic downturn of FYE 2008 (38.6%).
Income inequality for people in retired households increased by 3.5 percentage points to 30.7% in the 10-year period leading up to FYE 2020; this compares with 2 percentage points growth over the same period to reach 36.5% for people living in non-retired households.

Estimates of median and mean disposable income for people in the UK for the financial year ending 2019.

Effects of taxes and benefits on household income

Average annual incomes, taxes and benefits, and household characteristics of retired and non-retired households in the UK. Data for financial years, by quintile and decile groups, country and region and tenure type.
Nowcasting household income in the UK

Provisional estimates of income and inequality measures for financial year ending 2018, alongside historical data.
Economic well-being estimates

Full dataset of economic well-being indicators included or referenced in the quarterly release.
Equivalised disposable household income

Average equivalised disposable income for all households
Households receiving more in benefits than paid in taxes

The percentage of households in the UK who receive more in benefits (both cash benefits and benefits in kind) than they pay in taxes (both direct and indirect), from 1977 to 2012/13.
Coronavirus and the social impacts on different ethnic groups in the UK

Estimates from the Understanding Society: COVID-19 Study, 2020, UK Household Longitudinal Study (UKHLS) and Wealth and Assets Survey (WAS) to explore the social impacts of the coronavirus (COVID-19) pandemic on people from different ethnic groups in the UK.

Economic well-being, UK: April to June 2018

Presents a rounded and comprehensive basis for assessing changes in economic well-being through indicators that adjust or supplement more traditional measures such as gross domestic product (GDP).
Effects of taxes and benefits on UK household income: financial year ending 2020

The redistribution effects on individuals and households of direct and indirect taxation and benefits received in cash or kind analysed by household type.
Average household income, UK: financial year 2020

Final estimates of average household income in the UK, with analysis of how these measures have changed over time, accounting for inflation and household composition.
Personal and economic well-being in Great Britain: May 2021

Estimates from multiple sources for personal and economic well-being to understand the economic impact of the coronavirus (COVID-19) pandemic on households in Great Britain from March 2020 to April 2021.
Effects of taxes and benefits on UK household income: financial year ending 2020

The redistribution effects on individuals and households of direct and indirect taxation and benefits received in cash or kind analysed by household type.
Average household income, UK: financial year 2020

Final estimates of average household income in the UK, with analysis of how these measures have changed over time, accounting for inflation and household composition.

Generational income: The effects of taxes and benefits

The effects of direct and indirect taxation and benefits received in cash or kind on household income, across the generations and by age.
Persistent poverty in the UK and EU

Comparisons of persistent poverty between UK and other EU countries.
Financial capability in Great Britain

This article describes the results of analysis of the financial capability measures contained in the 2010 to 2012 Wealth and Assets Survey, many of which were asked for the first time in this wave. It has been written by Andrea Finney and David Hayes of the University of Bristol’s Personal Finance Research Centre to follow the style of an Office for National Statistics statistical bulletin
Early indicator estimates from the Wealth and Assets Survey

Preliminary estimates for Great Britain from the Wealth and Assets Survey using attitudinal data not dependent on thorough checking and imputation methodology.
Family spending in the UK

Average weekly household expenditure on goods and services in the UK, by region, age, income, economic status, socio-economic class and household composition.
General Lifestyle Survey

Includes chapters on health, smoking, drinking, households, families and access to vehicles.