Average UK household incomes taxes and benefits by household type, tenure status, household characteristics and long-term trends in income inequality.

Data on the effects of taxes and benefits on household income publication from 2001, including average incomes, taxes and benefits and household characteristics of all, retired and non-retired individuals and households in the UK by quintile and decile groups.

In 2023/24, 57 percent of households in Northern Ireland were receiving a type of state benefit, the highest in the United Kingdom in that reporting year. By comparison, 39 percent of households in London were receiving benefits, the lowest in the UK.

This analysis, produced by the Office for National Statistics (ONS), examines how taxes and benefits redistribute income between various groups of households in the United Kingdom. It shows where different types of households and individuals are in the income distribution and looks at the changing levels of income inequality over time. The main sources of data for this study are:

• Family Expenditure Survey (FES) from 1977-2001
• Expenditure and Food Survey (EFS) from 2001-2007
• Living Costs and Food Survey (LCF) from 2008 to 2017
• Household Finances Survey (HFS) from 2018 onwards
  

Some variables have been created by combining data from the LCF (previously FES or EFS) with control totals from a variety of different government sources, including:

• United Kingdom National Accounts (ONS Blue Book)
• HM Revenue and Customs (HMRC)
• Department for Transport (DfT)
• Department of Health (DH)
• Department for Education and Employment (DfEE)
• Department for Communities and Local Government (DCLG)

For further information, see the ONS Effects of taxes and benefits on household income webpage.

Users should note that this combined ETB household (1977-2021) and person (2018-2021) datasets replace all previous individual year files, which have been withdrawn from use at the depositor's request.

Latest edition information

For the second edition (September 2022), revised data for 2019/20 and new cases for 2020/21 were added to the household and person files.

Method of Data Collection
The ETB has been produced each year since 1961 and is an annual analysis looking at how taxes and benefits affect the income of households in the UK.

Since 2018, the estimates in this analysis are based on data derived from the HFS Survey (the HCF is not currently held by the UK Data Service). The HFS is an annual survey of the expenditure and income of private households. People living in hotels, lodging houses, and in institutions such as old people's homes are excluded. Each person aged 16 and over keeps a full record of payments made during 14 consecutive days and answers questions about hire purchase and other payments; children aged 7 to 15 keep a simplified diary. The respondents also give detailed information, where appropriate, about income (including cash benefits received from the state) and payments of Income Tax. Information on age, occupation, education received, family composition and housing tenure is also obtained. The survey is continuous, interviews being spread evenly over the year to ensure that seasonal effects are covered. The Family Spending publication also includes an outline of the survey design.

The HFS data used in this analysis are grossed so that totals reflect the total population of private households in the UK. The weights are produced in two stages. First, the data are weighted to compensate for non-response (sample-based weighting). The non-response weights are then calibrated so that weighted totals match population totals for males and females in different age groups and for different regions and countries (population-based weighting). The results in the analysis are weighted so that statistics represent the total population in private households in the UK based on 2011 Census data. In 2013/14, an additional calibration to the Labour Force Survey (LFS) employment totals was also applied.

There are a number of different measures of income used, the most common of which is probably household disposable income. This is the total income households receive from employment (including self-employment), income from private pensions, investments and other sources, plus cash benefits (including the state pension), minus direct taxes (including income tax, NI and council tax). Income is normally analysed at the household level as this provides a better measure of people's economic well-being; while income is usually received by individuals, it is normally shared with other household members (e.g. spouse/partner and children).

In 2018/19 a further adjustment was applied to the data to adjust for the under coverage and under-reporting of income of the richest individuals. This method is often referred to as the 'SPI adjustment' owing to its use of HM Revenue and Customs (HMRC's) Survey of Personal Incomes (SPI). For further details please see the ETB Quality and Methodology Information webpage and the Effects of Taxes and Benefits on Household Income Technical Report.

Data Sources

The Household Finances Survey (HFS) is the source of the microdata on households from 2018 onwards. Previously, the Living Costs and Food Survey (LCF) was the data source. Derived variables are created using information from HFS and control totals from a variety of different government sources including the United Kingdom National Accounts (ONS Blue Book), HM Revenue and Customs, Department for Transport, Department of Health, Department for Education and Employment, and Department for Communities and Local Government.

Secure Access version

A Secure Access version of the ETB is available from the UK Data Archive under SN 8253, subject to stringent access conditions. The Secure Access version includes variables that are not included in the standard End User Licence (EUL) version, including case number, age and economic position of chief economic supporter, and government office region. Users are strongly advised to check whether the EUL version is sufficient for their needs before considering an application for the Secure Access version.

Abstract copyright UK Data Service and data collection copyright owner. This analysis, produced by the Office for National Statistics (ONS), examines how taxes and benefits redistribute income between various groups of households in the United Kingdom. It shows where different types of households and individuals are in the income distribution and looks at the changing levels of income inequality over time. The main sources of data for this study are: Family Expenditure Survey (FES) from 1977-2001Expenditure and Food Survey (EFS) from 2001-2007Living Costs and Food Survey (LCF) from 2008 to 2017Household Finances Survey (HFS) from 2018 onwards Some variables have been created by combining data from the LCF (previously FES or EFS) with control totals from a variety of different government sources, including: United Kingdom National Accounts (ONS Blue Book)HM Revenue and Customs (HMRC)Department for Transport (DfT)Department of Health (DH)Department for Education and Employment (DfEE)Department for Communities and Local Government (DCLG) For further information, see the ONS Effects of taxes and benefits on household income webpage.Users should note that this combined ETB household (1977-2021) and person (2018-2021) datasets replace all previous individual year files, which have been withdrawn from use at the depositor's request. Latest edition informationFor the second edition (September 2022), revised data for 2019/20 and new cases for 2020/21 were added to the household and person files. Method of Data Collection The ETB has been produced each year since 1961 and is an annual analysis looking at how taxes and benefits affect the income of households in the UK. Since 2018, the estimates in this analysis are based on data derived from the HFS Survey (the HCF is not currently held by the UK Data Service). The HFS is an annual survey of the expenditure and income of private households. People living in hotels, lodging houses, and in institutions such as old people's homes are excluded. Each person aged 16 and over keeps a full record of payments made during 14 consecutive days and answers questions about hire purchase and other payments; children aged 7 to 15 keep a simplified diary. The respondents also give detailed information, where appropriate, about income (including cash benefits received from the state) and payments of Income Tax. Information on age, occupation, education received, family composition and housing tenure is also obtained. The survey is continuous, interviews being spread evenly over the year to ensure that seasonal effects are covered. The Family Spending publication also includes an outline of the survey design. The HFS data used in this analysis are grossed so that totals reflect the total population of private households in the UK. The weights are produced in two stages. First, the data are weighted to compensate for non-response (sample-based weighting). The non-response weights are then calibrated so that weighted totals match population totals for males and females in different age groups and for different regions and countries (population-based weighting). The results in the analysis are weighted so that statistics represent the total population in private households in the UK based on 2011 Census data. In 2013/14, an additional calibration to the Labour Force Survey (LFS) employment totals was also applied. There are a number of different measures of income used, the most common of which is probably household disposable income. This is the total income households receive from employment (including self-employment), income from private pensions, investments and other sources, plus cash benefits (including the state pension), minus direct taxes (including income tax, NI and council tax). Income is normally analysed at the household level as this provides a better measure of people's economic well-being; while income is usually received by individuals, it is normally shared with other household members (e.g. spouse/partner and children). In 2018/19 a further adjustment was applied to the data to adjust for the under coverage and under-reporting of income of the richest individuals. This method is often referred to as the 'SPI adjustment' owing to its use of HM Revenue and Customs (HMRC's) Survey of Personal Incomes (SPI). For further details please see the ETB Quality and Methodology Information webpage and the Effects of Taxes and Benefits on Household Income Technical Report. Data Sources The Household Finances Survey (HFS) is the source of the microdata on households from 2018 onwards. Previously, the Living Costs and Food Survey (LCF) was the data source. Derived variables are created using information from HFS and control totals from a variety of different government sources including the United Kingdom National Accounts (ONS Blue Book), HM Revenue and Customs, Department for Transport, Department of Health, Department for Education and Employment, and Department for Communities and Local Government. Secure Access version A Secure Access version of the ETB is available from the UK Data Archive under SN 8253, subject to stringent access conditions. The Secure Access version includes variables that are not included in the standard End User Licence (EUL) version, including case number, age and economic position of chief economic supporter, and government office region. Users are strongly advised to check whether the EUL version is sufficient for their needs before considering an application for the Secure Access version. Main Topics: The analysis considers the distribution of household income using five income measures in order to assess the effect of government intervention. The five income measures are: original income: includes income from employment, self-employment, investment income, occupational pensions and annuitiesgross income: original income plus cash benefitsdisposable income: gross income minus direct taxes (income tax, employees' National Insurance contributions and local taxes)post-tax income: disposable income minus indirect taxesfinal income: post-tax income plus benefits in kind (from education, the national health system, travel and housing subsidies). Standard measures: Historically, the equivalence scale used in this analysis was the McClements scale (before housing costs are deducted). To allow for better comparability with other sources, this analysis adopted the modified-OECD scale for the 2009/10 article. The modified-OECD scale usually assigns a weight of 1.0 for the first adult in a household, 0.5 for each additional adult and a weight of 0.3 for each child (defined as those under 14 years old). However, in this analysis the modified-OECD scale has been rescaled so that a two adult household equivalence value is 1.0. This makes it easier to compare with data that uses the McClements equivalence scale without making any difference to the overall results. The values for each household member are added together to give the total equivalence number for that household. This number is then used to divide disposable income for that household to give equivalised disposable income.

In the 3 years to March 2021, black households were most likely out of all ethnic groups to have a weekly income of under £600.

Examines how taxes and benefits redistribute income between various groups of households in the UK. The study shows where different types of households and individuals are in the income distribution and looks at the changing levels of income inequality over time.

Source agency: Office for National Statistics

Designation: National Statistics

Language: English

Alternative title: household income

Households in the Indian and White Other ethnic groups received the highest percentage of their income from employment out of all ethnic groups.

This statistic shows the share of families receiving income-related benefits in England in fiscal year 2017/18, by region. In this fiscal year, ** percent of the families in the North East received income-related benefits while the respective number in the South East was ** percent.

This statistic shows the share of families receiving benefits in the United Kingdom (UK) in fiscal year 2017/18, by benefit. In this fiscal year, ** percent of the families received Child benefit while a further ** percent received housing benefit.

Between April 2008 and March 2024, households from the Pakistani and Bangladeshi ethnic groups were the most likely to live in low income out of all ethnic groups, before and after housing costs.

75% of households from the Bangladeshi ethnic group were in the 2 lowest income quintiles (after housing costs were deducted) between April 2021 and March 2024.

The percentage of households in the UK who receive more in benefits (both cash benefits and benefits in kind) than they pay in taxes (both direct and indirect), from 1977 to 2012/13.

In the 3 years to March 2021, white British families were the most likely to receive a type of state support.

This statistic shows the share families receiving non-income-related benefits in the United Kingdom (UK) in the fiscal year 2017/18 by employment status. In this year, ** percent of the families, where one partner was working full-time and the other was not working, received some form of non-income-related benefits.

This is the proportion of all households that are in receipt of housing benefit. Statistical disclosure control has been applied to this data which guards against the identification of an individual claimant. 0 or 0.00 denotes a nil or negligible number of claimants or award amount, based on 4 or fewer claimants. Household: a single person, or a group of people living at the same address who have the address as their only or main residence and either share one main meal a day or share living accommodation (or both).Figures are based on the claimant's place of residence. Claimants registered as living abroad or where the location is unknown are excluded. Housing Benefit claimant statistics are derived from the Single Housing Benefit Extract (SHBE), as at the second Thursday of each month. SHBE is compiled from monthly returns of housing benefit and council tax benefit claimants from each individual local authority. Recording and clerical errors can occur within SHBE - for this reason, no reliance should be placed on very small numbers obtained through Stat-Xplore.Data is Powered by LG Inform Plus and automatically checked for new data on the 3rd of each month.