Average household income, UK - Financial Year Ending 2024 - We all got poorer but the lowest incomes saw the worst drop

8th May 2025

Median household disposable income in the UK did not change statistically significantly from FYE 2023, it had a small increase of 0.8% to £36,700; this is in line with pre-coronavirus (COVID-19) pandemic, FYE 2020 levels.

Median household disposable income for the poorest fifth of the population decreased by 2.6% to £16,800, largely because of a reduction in wages and salaries; this remains 4.9% below pre-pandemic, FYE 2020 levels.

Median household disposable income for the richest fifth of the population decreased by 1.6% to £71,100, because of a reduction in original income; this is 5.8% below pre-pandemic, FYE 2020 levels.

Analysis of average disposable income
This analysis is based on a disposable income measure, unless otherwise stated, which is the amount of money households have available for spending and saving after direct taxes have been accounted for. It includes earnings from employment, private pensions and investments, as well as cash benefits provided by the state. All values presented in this bulletin have been equivalised. See Section 5: Glossary for the definition of a disposable income measure and equivalisation.

Household disposable income estimates for financial year ending (FYE) 2024 include several ongoing cost of living financial support schemes, these were continued from FYE 2023. Low-income benefits and tax credits Cost of Living Payment, the Disability Cost of Living Payment, and the Pensioner Cost of Living Payment were continued and captured within cash benefits. The Energy Support Scheme, Council Tax rebate schemes (Great Britain), and the Alternative Fuel Payment were discontinued in FYE 2024 and were captured in original income for FYE 2023.

Median income did not change statistically significantly between FYE 2023 and FYE 2024 with a small increase of 0.8% (Figure 1). This follows a decrease of 2.5% between FYE 2022 and FYE 2023. Mean income decreased by 1.2% between FYE 2023 and FYE 2024, following a larger reduction of 4.7% between FYE 2022 and FYE 2023. Median income decreased by 1.7% between FYE 2022 and FYE 2024, while mean income statistically significantly decreased by 5.9% over the same period.

Household income is reported using both means and medians. However, when considering changes in income and direct taxes by income decile or types of households, the mean allows for these changes to be analysed in an additive way.

Median household disposable income in the 10 years up to FYE 2024 (FYE 2015 to FYE 2024) increased by 7.0%, with an average increase rate of 0.8% per year for this period.

Median income for the poorest fifth of people decreased by 2.6% between FYE 2023 and FYE 2024 (Figure 3), following a 2.3% increase between FYE 2022 and FYE 2023. In the 10 years leading up to FYE 2024 (FYE 2015 to FYE 2024) this group has only seen a small decrease of 1.1% in median income. Since the coronavirus pandemic (FYE 2020 to FYE 2024), it has decreased by 4.9% at an average rate of 1.2% per year.

Median income for the richest fifth of people decreased by 1.6% between FYE 2023 and FYE 2024 (Figure 3). This follows a larger reduction in median disposable income of 4.9% between FYE 2022 and FYE 2023. In the 10 years leading up to 2024 (FYE 2015 to FYE 2024) income in this group decreased gradually at an average rate of 0.2% per year. Since the coronavirus pandemic (FYE 2020 to FYE 2024) it decreased by 5.8% at an average rate of 1.5% per year.

Read the full ONS report HERE