Median household incomes

Median household income: ONS

  • Growth in UK median household disposable income since 1977 has closely mirrored growth in GDP per person, rising during periods of economic growth and falling after the recessions of the early 1980s, early 1990s and late 2000s.
  • Since the start of the economic downturn, median household income for the overall population has fallen by 3.8%, after adjusting for inflation.
  • However, when looking separately at non-retired and retired households, the median income for non-retired households fell by 6.4% between 2007/08 and 2011/12, while the median income for retired households grew by 5.1%.
  • Between 2007/08 and 2011/12, average income from employment and investments for the middle fifth of non-retired households fell from £37,900 to £32,600.
  • Cash benefits for the middle fifth of non-retired households rose from £3,100 to £4,600 between 2007/08 and 2011/12. As a result, the average proportion of gross income coming from cash benefits increased from 7.6% to 12.3% for this group.
  • Average direct taxes paid by the middle fifth of non-retired households have fallen from £8,700 in 2007/08 to £6,800 in 2011/12. As a percentage of gross income, this is equivalent to a fall from 21.1% to 18.3%.
  • The average amount paid in indirect taxes by the middle fifth of non-retired households also fell between 2007/08 and 2011/12, from £6,400 to £6,000, partly reflecting falling average expenditure. However, as a proportion of gross income, indirect taxes rose from 15.6% to 16.2% over this period, due to gross income falling at a faster rate.

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