Household income gives a more complete picture of living standards than individual salary alone. Here’s where UK households stand in the latest ONS figures (financial year ending 2025).
Read more: See our Salary By Profession guide for a complete overview of this topic.
UK Median Household Income (FYE 2025)
| Measure | Annual | Monthly |
|---|---|---|
| Median disposable household income (equivalised) | £39,200 | £3,267 |
Disposable income = income after income tax, National Insurance and Council Tax, with cash benefits added. The £39,200 median figure is equivalised (adjusted for household size and composition) per ONS convention, based on the Household Finances Survey for the financial year ending 2025 (the latest published figure).
What Counts as Household Income
| Source | Included? |
|---|---|
| Salaries (all household members) | Yes |
| Self-employment income | Yes |
| State pension and private pensions | Yes |
| Benefits (UC, child benefit, PIP, etc.) | Yes |
| Investment income (dividends, interest) | Yes |
| Rental income | Yes |
ONS income measures do not include capital gains, inheritances, or other windfalls.
Income Distribution of UK Households
| Percentile | Annual disposable income | Monthly |
|---|---|---|
| Poorest fifth (median within this group) | £18,300 | £1,525 |
| Median (50th) | £39,200 | £3,267 |
| Richest fifth (median within this group) | £77,000 | £6,417 |
Understanding Equivalised Income
Raw household income doesn’t account for household size. £50,000 for a single person is very different from £50,000 for a family of five.
The modified OECD equivalisation method:
| Household member | Weight |
|---|---|
| First adult | 1.0 |
| Each additional adult (14+) | 0.5 |
| Each child (under 14) | 0.3 |
Example
A couple with two young children earning £60,000 household income:
- Equivalisation factor: 1.0 + 0.5 + 0.3 + 0.3 = 2.1
- Equivalised income: £60,000 ÷ 2.1 = £28,571
- This compares to a single person on £28,571
Despite earning £60,000, their per-person standard of living is similar to a single person on £28,571.
Household Income vs Individual: Why It Matters
Individual salary and household income measure different things. Household income adds together every source for everyone in the home, and ONS compares households after adjusting (equivalising) for household size. A couple where both earn £28,000 has a higher household income than a single earner on £28,000, but the standard of living per person also depends on how many people share it.
How Household Income Has Changed
In FYE 2025 the median rose by 3.5% to £39,200 (ONS).