In March 2025, the top one percent of earners in the United Kingdom received an average pay of over 16,000 British pounds per month, compared with the bottom ten percent of earners who earned around 800 pounds a month.

Disposable Personal Income in the United Kingdom decreased to 417902 GBP Million in the first quarter of 2025 from 421732 GBP Million in the fourth quarter of 2024. This dataset provides - United Kingdom Households Disposable Income - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Real household disposable income per person in the United Kingdom is expected to grow by *** percent in 2024/25, with disposable income growth slowing from that point onwards. In 2022/23, disposable income fell by *** percent, after falling by *** percent in 2021/22, and *** percent in 2020/21.

Renters in the UK spent on average 32.5 percent of their income on rent as of January 2025. Scotland and Yorkshire and Humber were the most affordable regions, with households spending less than 28 percent of their gross income on rent. Conversely, London, South West, and South East had a higher ratio. Greater London is the most expensive region for renters Greater London has a considerably higher rent than the rest of the UK regions. In 2024, the average rental cost in Greater London was more than twice higher than in the North West or West Midlands. Compared with Greater London, rent in the South East region was about 600 British pounds cheaper. London property prices continue to increase In recent years, house prices in the UK have been steadily increasing, and the period after the COVID-19 pandemic has been no exception. Prime residential property prices in Central London are forecast to continue rising until 2027. A similar trend in prime property prices is also expected in Outer London.

Household Saving Rate in the United Kingdom decreased to 10.90 percent in the first quarter of 2025 from 12 percent in the fourth quarter of 2024. This dataset provides - United Kingdom Households Saving Ratio - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The median annual earnings for full-time employees in the United Kingdom was approximately 37,430 British pounds in 2024, compared with 34,963 pounds in the previous year. At the start of the provided time period, in 1999, the average full-time salary in the UK was 17,803 pounds per year, with median earnings exceeding 20,000 pounds per year in 2002, and 30,000 by 2019. Wages continue to grow faster than inflation in 2025 Between November 2021 and July 2023 inflation was higher than wage growth in the UK, with wages still outpacing inflation as of March 2025. At the peak of the recent wave of high inflation in October 2022, the CPI inflation rate reached a 41-year-high of 11.1 percent, wages were growing much slower at 6.1 percent. Since that peak, inflation remained persistently high for several months, only dropping below double figures in April 2023, when inflation was 8.7 percent, down from 10.1 percent in the previous month. For 2023 as a whole, the average annual rate of inflation was 7.3 percent but fell to 2.5 percent in 2024, but is forecast to increase to 3.2 percent in 2025. Highest and lowest-paid occupations As of 2023, the highest-paid occupation in the UK was that of Chief Executives and Senior Officials, who had an average weekly pay of approximately, 1,576 pounds. By contrast, the lowest-paid occupation that year was that of retail cashiers, and check-out operators, who earned approximately 383 pounds a week. For industry sectors as a whole, people who worked full-time in the electricity, gas, steam and air conditioning supply sector had the highest average earnings, at 955 pounds a week, compared with 505 pounds a week in the accommodation and food services sector, the lowest average earnings in 2023.

In 2024, the average annual full-time earnings for the top ten percent of earners in the United Kingdom was 72,150 British pounds, compared with 22,763 for the bottom ten percent of earners. As of this year, the average annual earnings for all full-time employees was 37,430 pounds, up from 34,963 pounds in the previous year. Strong wage growth continues in 2025 As of February 2025, wages in the UK were growing by approximately 5.9 percent compared with the previous year, with this falling to 5.6 percent if bonus pay is included. When adjusted for inflation, regular pay without bonuses grew by 2.1 percent, with overall pay including bonus pay rising by 1.9 percent. While UK wages have now outpaced inflation for almost two years, there was a long period between 2021 and 2023 when high inflation in the UK was rising faster than wages, one of the leading reasons behind a severe cost of living crisis at the time. UK's gender pay gap falls in 2024 For several years, the difference between average hourly earnings for men and women has been falling, with the UK's gender pay gap dropping to 13.1 percent in 2024, down from 27.5 percent in 1997. When examined by specific industry sectors, however, the discrepancy between male and female earnings can be much starker. In the financial services sector, for example, the gender pay gap was almost 30 percent, with professional, scientific and technical professions also having a relatively high gender pay gap rate of 20 percent.

The median annual earnings in the United Kingdom was 37,430 British pounds per year in 2024. Annual earnings varied significantly by region, ranging from 47,455 pounds in London to 32,960 pounds in the North East. Along with London, two other areas of the UK had median annual earnings above the UK average; South East England, and Scotland, at 39,038 pounds and 38,315 pounds respectively. Regional Inequality in the UK Various other indicators highlight the degree of regional inequality in the UK, especially between London and the rest of the country. Productivity in London, as measured by output per hour, was 26.2 percent higher than the UK average. By comparison, every other UK region, except the South East, fell below the UK average for productivity. In gross domestic product per head, London was also an outlier. The average GDP per head in the UK was just over 37,000 pounds in 2023, but for London it was almost 64,000 pounds. Again, the South East's GDP per head was slightly above the UK average, with every other region below it. Within London itself, there is also a great degree of inequality. In 2023, for example, the average earnings in Kensington and Chelsea were 964 pounds per week, compared with 675 pounds in Barking and Dagenham. Wages continue to grow in 2025 In March 2025, weekly wages in the UK were growing by around 5.6 percent, or 1.8 percent when adjusted for inflation. For almost two years, wages have grown faster than inflation after a long period where prices were rising faster than wages between 2021 and 2023. This was due to a sustained period of high inflation in the UK, which peaked in October 2022 at 11.1 percent. Although inflation started to slow the following month, it wasn't until June 2023 that wages started to outpace inflation. By this point, the damage caused by high energy and food inflation had led to the the worst Cost of Living Crisis in the UK for a generation.

In April 2025, the UK minimum wage for adults over the age of 21 in will be 12.21 pounds per hour. For the 2025/26 financial year, there will be four minimum wage categories, three of which are based on age and one for apprentice workers. Apprentices, and workers under the age of 18 will have a minimum wage of 7.55 pounds an hour, increasing to ten pounds for those aged 18 to 20. When the minimum wage was first introduced in 1999, there were just two age categories; 18 to 21, and 22 and over. This increased to three categories in 2004, four in 2010, and five between 2016 and 2023, before being reduced down to four in the most recent year. The living wage The living wage is an alternative minimum wage amount that employers in the UK can voluntarily pay their employees. It is calculated independently of the legal minimum wage and results in a higher value figure. In 2023/24, for example, the living wage was twelve pounds an hour for the UK as a whole and 13.15 for workers in London, where the cost of living is typically higher. This living wage is different from what the UK government has named the national living wage, which was 10.42 in the same financial year. Between 2011/12 and 2023/24, the living wage has increased by 4.80 pounds, while the London living wage has grown by 4.85 pounds. Wage growth cancelled-out by high inflation 2021-2023 For a long period between the middle of 2021 and late 2023, average wage growth in the UK was unable to keep up with record inflation levels, resulting in the biggest fall in disposable income since 1956. Although the UK government attempted to mitigate the impact of falling living standards through a series of cost of living payments, the situation has still been very difficult for households. After peaking at 11.1 percent in October 2022, the UK's inflation rate remained in double figures until March 2023, and did not fall to the preferred rate of two percent until May 2024. As of November 2024, regular weekly pay in the UK was growing by 5.6 percent in nominal terms, and 2.5 percent when adjusted for inflation.

The UK inflation rate was 3.8 percent in July 2025, up from 3.6 percent in the previous month, and the fastest rate of inflation since January 2024. Between September 2022 and March 2023, the UK experienced seven months of double-digit inflation, which peaked at 11.1 percent in October 2022. Due to this long period of high inflation, UK consumer prices have increased by over 20 percent in the last three years. As of the most recent month, prices were rising fastest in the communications sector, at 6.1 percent, but were falling in both the furniture and transport sectors, at -0.3 percent and -0.6 percent, respectively.
The Cost of Living Crisis High inflation is one of the main factors behind the ongoing Cost of Living Crisis in the UK, which, despite subsiding somewhat in 2024, is still impacting households going into 2025. In December 2024, for example, 56 percent of UK households reported their cost of living was increasing compared with the previous month, up from 45 percent in July, but far lower than at the height of the crisis in 2022. After global energy prices spiraled that year, the UK's energy price cap increased substantially. The cap, which limits what suppliers can charge consumers, reached 3,549 British pounds per year in October 2022, compared with 1,277 pounds a year earlier. Along with soaring food costs, high-energy bills have hit UK households hard, especially lower income ones that spend more of their earnings on housing costs. As a result of these factors, UK households experienced their biggest fall in living standards in decades in 2022/23. Global inflation crisis causes rapid surge in prices The UK's high inflation, and cost of living crisis in 2022 had its origins in the COVID-19 pandemic. Following the initial waves of the virus, global supply chains struggled to meet the renewed demand for goods and services. Food and energy prices, which were already high, increased further in 2022. Russia's invasion of Ukraine in February 2022 brought an end to the era of cheap gas flowing to European markets from Russia. The war also disrupted global food markets, as both Russia and Ukraine are major exporters of cereal crops. As a result of these factors, inflation surged across Europe and in other parts of the world, but typically declined in 2023, and approached more usual levels by 2024.

The house price ratio in the United Kingdom (UK) increased in the third quarter of 2024, after falling for the past two years. The ratio measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. The UK's index score in the third quarter of 2024 amounted to *****, which means that house price growth has outpaced income growth by **** percent since 2015. This was close, but still lower than the Euro area ** average.

In 2024, gross domestic product per capita in the United Kingdom was 37,044 British pounds, compared with 37,033 pounds in the previous year. In general, while GDP per capita has grown quite consistently throughout this period, there are noticeable declines, especially between 2007 and 2009, and between 2019 and 2020, due to the Global Financial Crisis, and COVID-19 pandemic, respectively. Why is GDP per capita stagnating when the economy is growing? During the last two years that GDP per capita fell and then stagnated in the UK, the overall economy grew by 0.4 percent in 2023 and 1.1 percent in 2024. While the overall UK economy is therefore larger than it was in 2022, the UK's population has grown at a faster rate, resulting in the lower GDP per capita figure. The long-term slump in the UK's productivity, as measured by output per hour worked, has meant that the gap between GDP growth and GDP per capita growth has been widening for some time. Economy remains the main concern of UK voters As of February 2025, the economy was seen as the main issue facing the UK, just ahead of immigration, health, and several other problems in the country. While Brexit was seen as the most important issue before COVID-19, and concerns about health were dominant throughout 2020 and 2021, the economy has generally been the primary facing voters issue since 2022. The surge in inflation throughout 2022 and 2023, and the impact this had on wages and living standards, resulted in a very tough period for UK households. As of January 2025, 57 percent of households were still noticing rising living costs, although this is down from a peak of 91 percent in August 2022.

The economy of the United Kingdom grew by 0.4 percent in June 2025, after shrinking by 0.1 percent in May 2025. As of the most recent month, the UK economy is around 4.9 percent larger than it was in February 2020, just before the start of COVID-19 lockdowns. After a record 19.6 percent decline in GDP in April 2020, the UK economy quickly returned to growth in the following months, and grew through most of 2021. Cost of living crisis lingers into 2025 As of December 2024, just over half of people in the UK reported that their cost of living was higher than it was in the previous month. Although this is a decline from the peak of the crisis in 2022 when over 90 percent of people reported a higher cost of living, households are evidently still under severe pressure. While wage growth has outpaced inflation since July 2023, overall consumer prices were 20 percent higher in late 2024 than they were in late 2021. For food and energy, which lower income households spend more on, late 2024 prices were almost 30 percent higher when compared with late 2021. According to recent estimates, living standards, as measured by changes in disposable income fell by 2.1 percent in 2022/23, but did start to grow again in 2023/24. Late 2023 recession followed by growth in 2024 In December 2023, the UK economy was approximately the same size as it was a year earlier, and struggled to achieve modest growth throughout that year. Going into 2023, a surge in energy costs, as well as high interest rates, created an unfavorable environment for UK consumers and businesses. The inflationary pressures that drove these problems did start to subside, however, with inflation falling to 3.9 percent in November 2023, down from a peak of 11.1 percent in October 2022. Although relatively strong economic growth occurred in the first half of 2024, with GDP growing by 0.7 percent, and 0.4 percent in the first two quarters of the year, zero growth was reported in the third quarter of the year. Long-term issues, such as low business investment, weak productivity growth, and regional inequality, will likely continue to hamper the economy going forward.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

The Retail Price Index (RPI) is one of the main measures of inflation used to calculate the change in the price of goods and services within the British economy. In the second quarter of 2025 the index value was 403.2, indicating that the price for a fixed basket of goods had increased by almost more than 300 percent since 1987. The RPI inflation rate for June 2025 was 4.4 percent, up from 3.2 percent in March 2025 Inflation and UK living standards For UK consumers, high inflation is one of the main drivers of the ongoing cost of living crisis. With wages struggling to keep up with the pace of inflation for a long period between 2021 and 2023, UK households saw their living standards fall significantly. In 2022/23, real household disposable income in the UK is estimated to have fallen by 2.1 percent, which was the biggest fall in living standards since 1956. While there have been some signals that the crisis eased somewhat in 2024, such as falling energy and food inflation, an increasing share of UK households have reported increasing living costs since Summer 2024. Additional inflation indicators Aside from the Retail Price Index, the UK also produces other inflation indices such as the Consumer Price Index (CPI) and the Consumer Price Index including owner occupiers' housing costs (CPIH). While these particular indices measure consumer price increases slightly differently, they both provide an overall picture of rising prices. More specific inflation rates, such as by sector, are also produced, while other indices omit certain items, such as core inflation, which excludes food and energy inflation, to provide a more stable measure of inflation.

In August 2025, the Consumer Price Index including owner occupiers' housing costs (CPIH) inflation rate of the United Kingdom was *** percent, down from *** percent in the previous month. The inflation rate fell noticeably after the COVID-19 pandemic but rose sharply between Spring 2021 and Autumn 2022. After peaking at *** percent in October 2022, CPIH inflation declined throughout 2023 and into 2024, falling to *** percent by September of that year, before increasing again recently. Cost of living problems persist into 2025 Although it is likely that the worst of the recent inflation surge may have passed, the issues caused by it look set to linger into 2025 and beyond. While the share of households experiencing living cost rises has fallen from ** percent in August 2022, to ** percent in July 2024, this share rose towards the end of the year, with more than half of households reporting rising costs in December. Even with lower inflation, overall consumer prices have already increased by around ** percent in the last three years, rising to almost ** percent for food prices, which lower income households typically spend more of their income on. The significant increase in people relying on food banks across the UK, is evidence of the magnitude of this problem, with approximately **** million people using food banks in 2023/24. Other measures of inflation While the CPIH inflation rate displayed here is the preferred index of the UK's Office of National Statistics, the Consumer Price Index (CPI) is often more prominently featured in the media in general. An older index, the Retail Price Index (RPI) is also still used by the government to calculate certain taxes and rail fares. Other metrics include the core inflation rate, which measures price increases without the volatility of food and energy costs, while price increases in goods and services can also be tracked separately. The inflation rate of individual sectors can also be measured, and as of December 2024, prices were rising fastest in the communications sector, at *** percent, with costs falling in the transport and furniture sectors.

In August 2025, the UK inflation rate for goods was 2.8 percent and 4.7percent for services. Prices for goods accelerated significantly, sharply between 2021 and 2022, before falling in 2023. By comparison, prices for services initially grew at a more moderate rate but have also not fallen as quickly. The overall CPI inflation rate for the UK reached a recent high of 11.1 percent in October 2022 and remained in double figures until April 2023, when it fell to 8.7 percent. As of this month, the UK's inflation rate was 3.6 percent, up from 3.4 percent in the previous month. Sectors driving high inflation In late 2024, communication was the sector with the highest inflation rate, with prices increasing by 6.1 percent as of December 2024. During the recent period of high inflation that eased in 2023, food and energy prices were particular high, with housing and energy inflation far higher than in any other sector, peaking at 26.6 percent towards the end of 2022. High food and energy prices since 2021 have been one of the main causes of the cost of living crisis in the UK, especially for low-income households that spend a higher share of their income on these categories. This is likely one of the factors driving increasing food bank usage in the UK, which saw approximately 3.12 million people use a food bank in 2023/24, compared with 1.9 million just before the COVID-19 pandemic. The global inflation crisis The UK has not been alone in suffering rapid price increases since 2021. After the start of the COVID-19 pandemic, a series of economic and geopolitical shocks had a dramatic impact on the global economy. A global supply chain crisis failed to meet rising demand in 2021, leading to the beginning of an Inflation Crisis, which was only exacerbated by Russia's invasion of Ukraine in February 2022. The war directly influenced the prices of food and energy, as both countries were major exporters of important crops. European imports of hydrocarbons from Russia were also steadily reduced throughout 2022 and 2023, resulting in higher energy prices throughout the year.