In the financial year ending (FYE) 2021, which covered the first year of the coronavirus pandemic, the median household income in the UK before taxes and benefits was £34,000, increasing to £37,600 after taxes and benefits.
The richest fifth of people’s average household income before taxes and benefits (£107,600) was 13 times larger than the poorest fifth (£8,200); however, this reduced to 4 times larger (£79,200 and £21,400, respectively) after taxes and benefits.
Over the 10-year period leading up to FYE 2021, the richest fifth of people’s average household income after taxes, benefits and price inflation increased by an average of 1.7% per year, compared with the poorest fifth, which increased by an average of 1.5% per year.
Average annual incomes, taxes and benefits, and household characteristics of retired and non-retired households in the UK. Data for financial years, by quintile and decile groups, country and region and tenure type.
Estimates from the Understanding Society: COVID-19 Study, 2020, UK Household Longitudinal Study (UKHLS) and Wealth and Assets Survey (WAS) to explore the social impacts of the coronavirus (COVID-19) pandemic on people from different ethnic groups in the UK.
This article describes the results of analysis of the financial capability measures contained in the 2010 to 2012 Wealth and Assets Survey, many of which were asked for the first time in this wave. It has been written by Andrea Finney and David Hayes of the University of Bristol’s Personal Finance Research Centre to follow the style of an Office for National Statistics statistical bulletin