ONS: Average UK household income – financial year 2020
Industry News | 22/01/21
Final estimates of average household income in the UK have been published, with analysis of how these measures have changed over time, accounting for inflation and household composition.
• In financial year ending (FYE) 2020 (April 2019 to March 2020), the period leading up to the coronavirus (COVID-19) pandemic, median household income in the UK was £29,900, based on estimates from the Office for National Statistics (ONS) Household Finances Survey.
• Between FYE 2011 and FYE 2020, median household income increased by 7%, an average of 0.8% per year, after accounting for inflation.
• Growth in income of the poorest fifth of people did not keep pace with inflation, which led to the median income of the poorest fifth falling by an average of 3.8% per year between FYE 2017 and FYE 2020.
• Median income of the richest fifth continued to grow steadily between FYE 2017 and FYE 2020, meaning that some measures of income inequality have increased over this period.
• Median income for people living in retired households fell by an average of 1.1% between FYE 2018 and FYE 2020; this compares with 1.8% growth per year for those living in non-retired households.