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Household Incomes

Volume 449: debated on Wednesday 19 July 2006

To ask the Chancellor of the Exchequer (1) what the (a) median and (b) mean gross household income was in the last year for which information is available; and if he will make a statement; (85778)

(2) what the lower limit of the top decile for gross household earnings was in the last year for which information is available; and if he will make a statement.

The information requested falls within the responsibility of the National Statistician, who has been asked to reply.

Letter from Karen Dunnell, dated 19 July 2006:

As National Statistician, I have been asked to reply to your recent questions asking what the (a) median and (b) mean gross household income was in the latest year available and what the lower limit of the top decile is for gross household earnings for the latest year (85778, 85779).

These estimates are based on the ONS analyses “The effects of taxes and benefits on household income” which is published annually. The latest analysis for 2004/05 was published on the National Statistics website on 12th May 2006 at http:// www.statistics.gov.uk/taxesbenefits. It is based on the Expenditure and Food Survey, which has a sample covering approximately 7,000 households in the UK. The analysis for 2005/06 is due to be published on the National Statistics website in May 2007.

Gross incomes include income from employment, self-employment, pensions, investment income, and cash benefits. The median gross household income in 2004/05 was £24,700 per year. The mean household gross income (which appears in table 14, appendix 1) was £31,884 per year.

Analyses of the distribution of household income are based on equivalised household incomes. These equivalised incomes are standardised to take into account the different size and composition of households. The lower limit of the top decile for equivalised household gross income in 2004/05 was £53,239 per year.

Separate figures are published on the earnings of employees although they are not directly comparable with these figures on household income, which cover all sources of income (not just income from employment) and all households in the population.