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Disposable Income

Work and Pensions written question – answered on 8th June 2011.

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Photo of Michael Meacher Michael Meacher Labour, Oldham West and Royton

To ask the Secretary of State for Work and Pensions what estimate has been made of the level of personal disposable income in real terms in each year since 1981.

Photo of Chris Grayling Chris Grayling The Minister of State, Department for Work and Pensions

Estimates of equivalised household disposable incomes are available in the Households Below Average Income (HBAI) series, produced by the Department for Work and Pensions, which is why the question has been transferred from the Cabinet Office to the Department for Work and Pensions.

The Households Below Average Income (HBAI) series uses disposable household income, adjusted using modified OECD equivalisation factors for household size and composition, as an income measure as a proxy for standard of living. This data are at a household not individual level.

Table 1: Median equivalised household income 1990-91 to 2009-10, in 2009-10 prices
£ per week
  Before Housing Costs After Housing Costs
1981 (UK) 254 206
1987 (UK) 292 236
1988-89 (UK) 313 256
1990-91 (UK) 321 261
1991-92 (UK) 322 263
1992-93 (UK) 323 264
1993-95 (UK) 328 270
1994-95 (GB) 323 262
1995-96 (GB) 323 263
1996-97 (GB) 338 277
1997-98 (GB) 344 282
1998-99 (GB) 349 288
1999-2000 (GB) 360 300
2000-01 (GB) 371 312
2001-02 (GB) 389 329
2002-03 (UK) 396 341
2003-04 (UK) 396 343
2004-05 (UK) 400 348
2005-06 (UK) 404 353
2006-07 (UK) 405 355
2007-08 (UK) 406 357
2008-09 (UK) 409 354
2009-10 (UK) 413 356
Notes: 1. FES figures are for the United Kingdom, FRS figures are for Great Britain up to 2001-02, and for the United Kingdom from 2002-03. The reference period for FRS figures is single financial years. FES figures are two combined calendar years from 1990-91 to 1992-93 and two financial years combined for 1993-95. 2. All estimates are based on survey data and are therefore subject to uncertainty. Small differences should be treated with caution as these will be affected by sampling error and variability in non-response. 3. Figures have been presented on a Before Housing Cost and an After Housing Cost basis. For Before Housing Costs, housing costs (such as rent, water rates, mortgage interest payments, buildings insurance payments and ground rent and service charges) are not deducted from income, while for After Housing Costs they are. 4. Disposable incomes have been used to answer the question. This includes earnings from employment and self-employment, state support, income from occupational and private pensions, investment income and other sources. Income tax, payments, national insurance contributions, council tax/domestic rates and some other payments are deducted from incomes. 5. Incomes are presented in 2009-10 prices and have been rounded to the nearest £ sterling. 6. The majority of these statistics are publicly available in the Households Below Average Income Report on the DWP website: Sources: 1. Family Expenditure Survey (FES) 1990-91 to 1993-95 2. Family Resources Survey (FRS)1994-95 to 2009-10

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