Household incomes highest on record
Household incomes have risen to a record high according to statistics released today, with the fastest growth in 10 years.
The average household now takes home £473 a week – £800 a year more than in 2013/14.
The number of people classed as in relative low income has also fallen by 300,000 since 2010, helped by an improving labour market and the protection of pensioner, disability and carers’ benefits.
Work and Pensions Secretary, Stephen Crabb said:
"Today’s figures are a sign of a strong economy – one that is benefitting people across the UK. Relative low income is down by 300,000 since 2010, household incomes are rising and the number of people in work is at a record high.
"There is of course still more to do and that’s why our Life Chances strategy will look at the root causes of poverty whether that’s worklessness, debt or addiction, family break down or educational attainment. It’s only by doing this that we can truly tackle poverty and ensure everyone succeeds in life."
The number of children in relative low income has fallen by 100,000 since 2010, while the number of children living in a workless household is down by 449,000 since 2010.
Income inequality – the gap between the richest and the poorest – is down since 2010 levels. And under separate statistics out today, pensioner incomes have continued to rise in real terms.
In addition:
• the news is a clear sign of a strong economy as statistics last month showed that the number of people in work is at record high – this is providing the stability of employment for 31.6 million people
• the number of women in work also remains at a record high and the claimant count has fallen by nearly 750,000 since 2010
• the government is also protecting all parts of society with the basic State Pension being protected through the ‘triple lock’ and disability benefits being exempt from the benefit freeze
• through welfare reform including Universal Credit, tax cuts and the introduction of the National Living Wage, it is paying to be in work – working families are benefitting from the introduction of the National Living Wage and the rise in the personal tax threshold is taking the lowest paid out of tax