Commentary – Household Income

The graph shows various indicators of UK income relative to their respective values in 2000. The declines in real household disposable income and real median income came a little later than those in real GDP, and the recovery in them a year or so later, with both in 2014 or 2015 still below their previous peaks.

The London School of Economics Growth Commission proposes ‘reforming the way we measure and monitor changes in material wellbeing and its distribution, including regularly publishing median household income alongside the latest data on GDP.’ As the chart shows, the two indices give contrasting pictures of the post-recession recovery.