Household incomes have risen to a record high according to statistics released, and income inequality remains lower than in 2010.
The average household now takes home a record £481 a week, which means, on average, households are seeing an extra £300 added to their income every year, compared to 2014/15.
People’s income growth continues to outstrip inflation, with 600,000 people moving out of absolute low income since 2010. This includes 200,000 children and 100,000 pensioners.
Children are 5 times more likely to be in low income if they live in a workless household, compared to a household where all adults work. And the number of children living in a workless household is down by 590,000 since 2010.
Work and Pensions Secretary, Damian Green, said: “It’s good news that household incomes are at a record high and it shows we have a strong economy.”
“But we know there is more to do. I’m committed to tackling disadvantage and these figures confirm that work is the best route out of poverty. Working parents help the whole family because of the dignity and security that comes from having a job.”
The news follows statistics yesterday that showed that the number of people in work remains at a joint-record high rate of 74.6%, with 31.85 million people now in work.
The overall rate of low income – which accounts for increases to the UK population – remains no higher than in 2010.
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. Through welfare reforms including Universal Credit, the government is making sure it always pays to be in work.
The government is continuing to protect all parts of society with the basic State Pension being protected through the ‘triple lock’ and disability benefits being exempt from the benefit freeze.
Source: Recruiting Times