Field: Decile of Net Household Income Before Housing Costs (BHC) in latest prices

Description

Net Household Income Groups of the Household: Decile of Net Household Income Before Housing Costs (BHC) in latest prices, as reported by FRS respondents, where:

• deciles divide the population, when ranked by net household income, into ten equal sized groups.
• the definition of a household used in the Family Resources Survey (FRS) is 'one person living alone or a group of people (not necessarily related) living at the same address who share cooking facilities and share a living room, sitting room, or dining area'. So, for example, a group of students with a shared living room would be counted as a single household even if they did not eat together, but a group of bed-sits at the same address would not be counted as a single household. A household may consist of one or more benefit units, which in turn will consist of one or more people (adults and children) - see Family Type for more information.
• income:
• is from all sources from all household members (including children's):
• usual net earnings from employment;
• profit or loss from self-employment (losses are treated as negative income);
• income from director's dividends (from 2021/22);
• state support - all benefits and tax credits, including state pension;
• income from occupational and private pensions;
• investment income;
• maintenance payments, if a person receives them directly;
• income from educational grants and scholarships;
• the cash value of certain forms of income in kind, including free school meals.
• is net of (after deductions have been removed for):
• income tax payments and National Insurance contributions;
• domestic rates/council tax;
• contributions to occupational pension schemes;
• all maintenance payments;
• student loan repayments;
• parental contributions to students living away from home.
• is equivalised: an adjustment is made to income to make it comparable across households of different size and composition.
• is SPI-adjusted: an adjustment is made to sample cases at the top of the income distribution to correct for under-reporting of earnings and volatility in the highest incomes captured in the survey.
• Before Housing Costs (BHC) indicates the following housing costs have not been deducted from income:
• rent (gross of housing benefit).
• water rates, community water charges and council water charges.
• mortgage interest payments.
• structural insurance premiums.
• in latest prices indicates variants of the Consumer Price Index (CPI) are used to adjust income for inflation to look at how incomes are changing over time in real terms.

Classification

Applicable to: All Individuals.

• Bottom decile
• Second decile
• Third decile
• Fourth decile
• Fifth decile
• Sixth decile
• Seventh decile
• Eighth decile
• Ninth decile
• Top decile

Number of categories: 10

Quality Statement

In Stat-Xplore, median incomes for decile and quintile groups are calculated from the incomes of individuals in the specific group. In published HBAI tables, median incomes for deciles and quintiles are taken from percentile income values for the whole population. As the calculations are based on very slightly different methods, there can sometimes be marginal differences seen for some income values when comparing Stat-Xplore outputs against published tables.

During 2022/23 the government announced and implemented additional support to families with several cost-of-living support schemes, depending on peoples' circumstances. These payments are included as part of the relevant income variables in HBAI.

From 2021/22, income received from director's dividends is included in the estimates following an addition to the Family Resources Survey. From 2022/23 they are only included where directors are classed as employees following a methodological review. The income is treated as income from earnings.

For the 2021/22 estimates, wages are treated as income from employment rather than state support, irrespective of any support payments from Coronavirus Job Retention Scheme (CJRS) that the respondent's employer was receiving in respect of their employment. Amounts received through the Self-Employment Income Support Scheme (SEISS) for the self-employed are indirectly included as part of the reporting of profit data for the most recent available tax year.

Further information can be found in the HBAI Quality and Methodology Report here.

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