WIREDGOV

Median household disposable income in the UK was estimated as £25,700 in the financial year ending 2015 (2014/15).

This is £1,500 higher than its recent low in 2012/13, after accounting for inflation and household composition, and is at a similar level to its pre-downturn value (£25,400).

The recent increase in disposable incomes has been driven largely by increased household income from employment, due to both average earnings growing in real terms in 2014/15 and continued growth in employment rates.

The median disposable income of the richest fifth of households fell the most following the economic downturn (7.9% between 2007/08 and 2012/13). Since then it has increased, but in 2014/15 remained £2,000 (3.2%) below its previous peak after accounting for inflation and household composition. The poorest fifth of households were the only group whose average income did not fall between 2007/08 and 2012/13 and in 2014/15 the average income of this group was £700 (5.8%) above its 2007/08 value.

Estimates of income inequality for 2014/15 are broadly unchanged from those for the previous financial year (any differences are not statistically significant). Since 2007/08, there has been a slight decrease in overall income inequality on a range of measures, although from a longer-term perspective, income inequality remains above levels seen in the early 1980s.

Income inequality for retired households has increased slightly in recent years, with the Gini coefficient for disposable income rising to 26.8, up from 24.3 in 2009/10.

The median income of retired households was largely unaffected by the economic downturn and rose by 7.7% (£1,500) between 2007/08 and 2014/15. In contrast, non-retired households’ median income in 2014/15 remained 3.1% (£900) below its level in 2007/08.

Download report: http://ons.gov.uk/ons/dcp171778_433888.pdf

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