Median household disposable income in the UK was £31,400 in financial year ending (FYE) 2021, which covered the first year of the coronavirus (COVID-19) pandemic; this was an annual increase of 2%, based on estimates from the Office for National Statistics' (ONS) Household Finances Survey.
Mean disposable income showed a small reduction of 0.6%, a consequence of a moderate fall at the bottom of the income distribution, relative stability across the middle, and a small fall at the top of the distribution.
There was a small reduction of 0.6% in mean disposable income, a consequence of a moderate fall at the bottom of the income distribution, relative stability across the middle, and a small fall at the top of the distribution.
Disposable income inequality fell slightly to 34.4% in the financial year ending (FYE) 2021 from 35.4% in FYE 2020; however, this difference was not statistically significant, and disposable income inequality remained broadly in line with the average over the decade prior to the coronavirus (COVID-19) pandemic.
Original income (before direct taxes and cash benefits) has fallen from 51.7% to 48.6% over the last decade (FYE 2012 to FYE 2021); this reflects greater equality in earnings over this period, partially offset by a fall in the effectiveness of cash benefits at reducing income inequality.
Disposable income inequality for people in retired households remained stable at 30.8%, changing only 0.1 percentage points from FYE 2020 to 2021; income inequality of retired households remains at near historical highs, although remains consistently lower than non-retired households (34.4% for FYE 2021).
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.
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.
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.
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