Household income, Q2 2012

The economic position of households, Q2 2012:  ONS

  • Real household actual income per head increased by £69 (1.6 per cent) in the second quarter of 2012, compared with the first quarter of 2012, to its highest level since the fourth quarter of 2010. Real household actual income per head stood at £4,510 in the second quarter of 2012
  • The increase in real household disposable income per head (differing from ‘actual’ income because it does not include in kind services provided by the state ) was slightly smaller in cash terms – £64 (1.8 per cent) from £3,653 in Q1 2012 to £3,717 in Q2 2012
  • Real household actual expenditure per head was virtually unchanged falling by £7 (0.2 per cent) in the second quarter of 2012, compared with the first quarter of 2012, falling from £4,430 in Q1 2012 to £4,423 in Q2 2012. Real household expenditure per head fell by £13 (0.4 per cent) from £3,579 in quarter 1 2012 to £3,566 in quarter 2 2012
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Sharp rise in UK household spending

Expenditure Index: Visa Europe

  • Sharp rise in UK household spending in September, with monthly growth of 3.0% recorded, the best figure since May 2009 (August: +1.2%).
  • Return to growth on annual measure, consumer spending up 0.2% on the year in September (August: -1.0%). First year-on-year rise since July 2011.
  • Strong rebound in spending over Q3 as a whole: September 3m/3m rate 1.9% (August: -0.1%)
  • High street principal source of growth as “face-to-face” spending rises by 1.6% year-on-year

Consumer Trends

Consumer Trends, Q2 2012: ONS

  • In Q2 2012, the volume measure of household spending (adjusted for inflation) fell by 0.2 per cent (£527 million), the first contraction since Q3 2011. It was 5.5 per cent below the peak of Q4 2007, and 1.2 per cent higher than Q2 2009
  • In Q2 2012 the value of current price household spending (inflation included)  increased by 0.7 per cent on the quarter, meaning it was 9.5 per cent higher than Q4 2007
  • In Q2 2012, the value of UK household spending per head was £3,813. This was £214 higher than in Q4 2007, the peak of pre recession spending

The economic position of households

The economic position of households: Q1 2012: ONS

  • Real household actual income per head fell by 0.6 per cent in the first quarter of 2012 compared with the fourth quarter of 2011, to its lowest level since the second quarter of 2005
  • Real household actual expenditure per head fell by 0.2 per cent in the first quarter of 2012 compared with the fourth quarter of 2011, to its second lowest level since the third quarter of 2003
  • The household saving ratio fell by 0.5 percentage points to 6.4 per cent in the first quarter of 2012. Gross household saving was £17,000 million in the same quarter, down from £18,300 million in the fourth quarter of 2011

UK Household Disposable Income

Household Disposable Income across the UK: ONS

  • London had the highest household income per head, nearly 30 per cent higher than the UK average.
  • The lowest disposable income was in the North East, 15 per cent lower than the UK average.
  • At local levels, Inner London West had the highest disposable income, at £33,323. The lowest was in Nottingham, at £10,702.
  • In 2010 across the UK as a whole, the average disposable household income per head stood at £15,709.
  • Over the period 1997 to 2010, London was the region with the largest growth in household income per head: 68.8 per cent
  • The rate of growth in disposable income slowed across almost all regions between 2008 and 2009.

Living standards

Living standards, poverty and inequality in the UK: 2012 – IFS

  • Over the past fifty years, average household net incomes have grown by about 1.7% per year in inflation-adjusted terms
  • Average private incomes started falling in 2008-09
  • Average household pre-tax-and-benefit income fell over 7% between 2007-08 and 2010-11, after accounting for inflation
  • Income inequality in the UK fell sharply in 2010–11.

Households Below Average Income

Households Below Average Income (HBAI): DWP

In 2010/11,

  • 18 per cent of children (2.3 million) were in households in the UK with incomes below 60 per cent of contemporary median net disposable household income Before Housing Costs (BHC), and 27 per cent (3.6 million) After Housing Costs (AHC)
  • 15 per cent of working-age adults (5.5 million) were in households in the UK with incomes below 60 per cent of contemporary median net disposable household income Before Housing Costs (BHC), and 21 per cent (7.8 million) After Housing Costs (AHC)
  • 17 per cent of pensioners (2.0 million) were in households in the UK with incomes below 60 per cent of contemporary median net disposable household income Before Housing Costs (BHC), and 14 per cent (1.7 million) After Housing Costs (AHC)