National Statistics Online - Articles - The effects of taxes and benefits on household income, 2001–02
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The effects of taxes and benefits on household income, 2001–02
Redistribution of income between various groups of UK households and changing levels of income inequality over time
Correction "The effects of taxes and benefits on household income, 2001-02" was published on the National Statistics website on 11 April 2003 and in the May 2003 edition of Economic Trends.
The main data source for this analysis is the Expenditure and Food Survey (EFS).
Errors have been found in the data for the Expenditure and Food Survey 2001/2002 and as a result, data have been revised as described in the Correction Notice posted on the National Statistics website on 22 September 2003.
Due to the EFS revisions, the data for the analysis of the effects of taxes and benefits on household income, 2001-02 have also been revised accordingly. The resulting differences to the figures are very small. As a result, all the tables and text of the analysis have been amended and the revised analysis has been published on the National Statistics website.
ONS apologises for the inconvenience caused.
Abstract The article examines how taxes and benefits redistribute income between various groups of households in the United Kingdom. It adds the value of government benefits to the private income of households and subtracts the value of taxes to look at different measures of household income.
The study shows where different types of households and individuals are in the income distribution and looks at the changing levels of income inequality over time. The article includes discussion of work, which has attempted to identify some of the factors, which have influenced these changes.
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