Office for National Statistics
Using tax data to better capture top incomes in household income inequality statistics
The Office for National Statistics (ONS) yesterday released details of a new method, jointly developed with the Department for Work and Pensions (DWP), that will help produce better estimates of the incomes of the highest paid people.
The new method, which forms part of wider plans to improve income and benefits statistics, uses tax data from HM Revenue and Customs (HMRC) to help adjust the estimates of the highest paid, a group who historically have been less likely to respond to surveys.
The new method increases the estimate of incomes for the top 10%, from £87,700 to £97,600 in the financial year ending (FYE) 2018. In addition, the new estimates increase income inequality by an average of 2.4 percentage points to an average of 34.8% between FYE 2008 and FYE 2018.
The adjustments allow new analyses of income inequality to be produced that show the income share of the richest 1% of people has remained fairly stable at around 7% since FYE 2010.
The new methods help to align estimates from our "Effect of taxes and benefits" and the DWP's "Households Below Average Income".
These improvements will be used for the first time in our Household disposable income and inequality: financial year ending 2019 release.
The full article Using tax data to better capture top incomes in household income inequality statistics can be found in the ONS Economic review and is being discussed at this morning's Economic Forum.
Latest News from
Office for National Statistics
Office for National Statistics’ COVID-19 Infection Survey to extend to Wales24/06/2020 12:15:00
The COVID-19 Infection Survey is being extended to include Wales for the first time following a successful launch of the study in England.
ONS jointly leading government's large-scale virus infection and antibody test study23/04/2020 12:15:00
Twenty thousand households in England are being contacted to take part in the first wave of a major new government study to track COVID-19 in the general population.
Unlocking Google COVID-19 data to analyse the impact of social distancing09/04/2020 15:15:15
The Office for National Statistics’ (ONS’) Data Science Campus has been looking at newly released data from Google to assess the impact of social distancing measures in the UK and see if it can be useful to policymakers.
New tool uses data to help address homelessness in UK13/02/2020 16:15:00
A new tool that aims to give insight into the conditions required to tackle homelessness has been launched today by the Centre for Homelessness Impact (CHI) and the Office for National Statistics (ONS).
Celebrating National Apprenticeship Week at the ONS04/02/2020 13:15:00
The Office for National Statistics (ONS) is celebrating National Apprenticeship Week by recognising the 110 apprentices who started work in 2019 at the UK's statistics headquarters in Newport and offices in London and Fareham.
Overview of child abuse in England and Wales14/01/2020 15:25:00
Around one in five adults in England and Wales experienced a form of child abuse before they turned 16, official figures from the Office for National Statistics (ONS) show.
ONS’s “clear commitment” leads to accreditation as a Disability Confident Leader07/01/2020 13:15:00
The Office for National Statistics (ONS) has been accredited as a Disability Confident Leader for an inclusive approach towards colleagues with disabilities.
What can your website and managers tell you about the potential success of your business?22/10/2019 13:15:00
Businesses that used words like “management”, “team”, and “project” in their job advertisements and news articles were more likely to have high growth than those that used words like “tax”, “law” and “pension”, according to free text analysis of websites by the Office for National Statistics’s (ONS’s) Data Science Campus.