Household Distributional Accounts 2023

Household Disposable Income

This chapter presents distributional information on household disposable income consistent with the Institutional Sector Accounts.

Figure 1.1 shows the ratio of gross disposable income per quintile to the average for all households. The first quintile, or the bottom 20% of households in the income distribution, had gross disposable income less than half that of the average for all households. In contrast, the fifth quintile, or the top 20% of households, had gross disposable incomes approximately twice that of the average for all households.

Figure 1.2 shows the ratio of gross disposable income between the top and bottom quintiles of the income distribution. This ratio fell from a peak of 5.6 over the period 2012 to 2014 to 4.7 in 2023.

Figure 1.3 provides a breakdown of gross disposable income per quintile in 2023. The figure shows that the relative importance of compensation of employees rises between the first and fourth quintile. For the fifth quintile, operating surplus/mixed income and net property income are a more significant source of income than for the other quintiles. In terms of government transfers, the relative importance of taxes in gross disposable incomes rises as you move up the income distribution while social benefits in cash become relatively less significant.

Figure 1.4 provides a breakdown of gross disposable income by tenure status in 2023. Compensation of employees is the main source of income for all groups but is relatively more important for households which own their dwelling with a mortgage. Social benefits in cash are relatively more important for households which either own their dwelling outright or rent. Net property income is relatively more important for households who own their dwelling outright.

Figure 1.5 shows the contribution of each quintile to household disposable income growth.