In the 2022/23 financial year, various measures of inequality in the United Kingdom decreased when compared with 2021/22. The S80/20 ratio fell from *** to ***, the P90/10 ratio from *** to ***, and the Palma ratio between *** and ***.

Historical dataset showing U.K. income inequality - gini coefficient by year from N/A to N/A.

The overall wealth of households in the United Kingdom was **** trillion British pounds in the period between 2020 and 2022. Of this overall wealth, the top ten percent of households had over *** trillion pounds of wealth, compared with **** billion owned by the lowest wealth decile.

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.

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

In 2023, the United Kingdom's Gini coefficient score was 33.1, a slight decrease when compared with the previous year. The Gini coefficient is a measurement of inequality within economies, a lower score indicates more equality while a higher score implies more inequality.

At the turn of the twentieth century, the wealthiest one percent of people in the United Kingdom controlled 71 percent of net personal wealth, while the top ten percent controlled 93 percent. The share of wealth controlled by the rich in the United Kingdom fell throughout the twentieth century, and by 1990 the richest one percent controlled 16 percent of wealth, and the richest ten percent just over half of it.

This article provides an initial insight into key measures of household income and inequality, along with analysis of how these measures have changed over time. Source agency: Office for National Statistics Designation: National Statistics Language: English

In 2022/23, the top quintile of earners in the United Kingdom had an average household disposable income of approximately ****** British pounds, compared with ****** for the bottom quintile.

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.

Dataset of long-run data on wealth inequality drawn from existing sources and compiled into a single country-year dataset.

Supplementary files for article Long-term relatedness and income distribution: understanding the deep roots of inequalityThis article explores the role of long-term relatedness between countries, captured by an index of genetic distance, in driving worldwide differences in income inequality. The main hypothesis is that genetic distance gives rise to barriers to the international diffusion of redistributive policies and measures, and institutions, leading to greater income disparities. Using cross-country data, I consistently find that countries that are genetically distant to Denmark—the world frontier of egalitarian income distribution—tend to suffer from higher inequality, ceteris paribus. I also demonstrate that genetic distance is associated with greater bilateral differences in income inequality between countries. Employing data from the European Social Survey, I document that second-generation Europeans descending from countries with greater genetic distance to Denmark are less likely to exhibit positive attitudes towards equality. Further evidence suggests that effective fiscal redistribution is a key mechanism through which genetic distance to Denmark transmits to greater income inequality.

What does the data show?

The data shows the S80/S20 income quintile ratio from the UK Climate Resilience Programme UK-SSPs project. The data is available for each ONS NUTS3 shape simplified to a 10m resolution.

The S80/S20 ratio is a measure of the inequality of income distribution. The ratio is the total income received by the 20% of the population with the highest income (the top quintile) against the total income received by the 20% of the population with the lowest income (the bottom quintile).

The data is available for the end of each decade. This dataset contains SSP1, SSP2, SSP3, SSP4 and SSP5. For more information see the table below.

Indicator

Inequality

Metric

S80/S20 income quintile ratio

Unit

Ratio [unitless]

Spatial Resolution

NUTS 3

Temporal Resolution

Decadal

Sectoral Categories

N/A

Baseline Data Source

OECD 2011

Projection Trend Source

Stakeholder process

What are the naming conventions and how do I explore the data?

This data contains a field for the year at the end of each decade. A separate field for 'Scenario' allows the data to be filtered, e.g. by scenario 'SSP3'.

To understand how to explore the data, see this page: https://storymaps.arcgis.com/stories/457e7a2bc73e40b089fac0e47c63a578

Please note, if viewing in ArcGIS Map Viewer, the map will default to 2020 values.

What are Shared Socioeconomic Pathways (SSPs)?

The global SSPs, used in Intergovernmental Panel on Climate Change (IPCC) assessments, are five different storylines of future socioeconomic circumstances, explaining how the global economy and society might evolve over the next 80 years. Crucially, the global SSPs are independent of climate change and climate change policy, i.e. they do not consider the potential impact climate change has on societal and economic choices.

Instead, they are designed to be coupled with a set of future climate scenarios, the Representative Concentration Pathways or ‘RCPs’. When combined together within climate research (in any number of ways), the SSPs and RCPs can tell us how feasible it would be to achieve different levels of climate change mitigation, and what challenges to climate change mitigation and adaptation might exist.

Until recently, UK-specific versions of the global SSPs were not available to combine with the RCP-based climate projections. The aim of the UK-SSPs project was to fill this gap by developing a set of socioeconomic scenarios for the UK that is consistent with the global SSPs used by the IPCC community, and which will provide the basis for further UK research on climate risk and resilience.

Useful links: Further information on the UK SSPs can be found on the UK SSP project site and in this storymap.Further information on RCP scenarios, SSPs and understanding climate data within the Met Office Climate Data Portal.

Three datasets, all carried out by YouGov and the WEALTHPOL team, are included. The first was conducted in Summer 2021, the second in Summer 2022, and the third in October 2022. CSVs, codebooks, and data construction files are included (note the latter include references to other files but show the coding).

Provides early or provisional estimates of median equivalised disposable income and measures of income inequality ahead of revised estimates from the effects of taxes and benefits on household income.

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