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Personal Income

Volume 474: debated on Wednesday 26 March 2008

To ask the Secretary of State for Work and Pensions what the average income was of the (a) top and (b) bottom quartile of households with dependent children in each year since 1997. (173891)

The information is in the following table.

Average (median) weekly equivalised incomes of the top and bottom quartile of households with dependent children since 1997

£

Before housing costs

After housing costs

Bottom quartile

Top quartile

Bottom quartile

Top quartile

1996-97

155

512

103

412

1997-98

157

520

105

419

1998-99

160

535

108

433

1999-2000

166

538

112

443

2000-01

174

562

118

466

2001-02

183

589

128

485

2002-03

185

584

130

493

2003-04

187

599

132

506

2004-05

191

596

135

510

2005-06

191

606

134

524

Notes:

1. The information shown is for the United Kingdom from 2002-03 onwards. Earlier years are Great Britain only.

2. The income measures used to derive the estimates shown employ the same methodology as the Department for Work and Pensions publication ‘Households Below Average Income’ (HBAI) series, which uses disposable household income, equivalised for household size and composition, as a proxy for standard of living.

3. Median incomes within the relevant quartiles have been presented. We have used median rather than mean as a measure of average incomes within the quartile. This is in line with the HBAI publication, where medians are used because the mean will be heavily influenced by the small number of households having very high or very low incomes.

4. Figures have been presented on both a before housing cost and an after housing cost basis. For before housing cost, housing costs (such as rent, water rates, mortgage interest payments, structural insurance payments and ground rent and service charges) are not deducted from income, while for after housing cost they are. This means that after housing cost incomes will generally be lower than before housing cost.

5. Amounts in the tables have been rounded to the nearest pound sterling.

Source:

Family Resources Survey, 2005-06

The figures show that households with dependent children in the lowest quartile and highest quartile of incomes have both seen their incomes grow over the last decade. Those families with dependent children in the lowest quartile have seen their incomes grow by a greater extent than those in the highest quartile.