To ask the Scottish Executive what the average household income is in Scotland and what it estimates the average household income would have been if it had grown at the same rate as in the United Kingdom since May (a) 1997 and (b) 1999.
The following table presentsthe median weekly household income estimates for Scotland based on the Family ResourcesSurvey. Results have been presented using GB information as the Family ResourcesSurvey has only included Northern Ireland since 2002-03.
Table: Median Weekly Household Income for Scotland, 2004-05
£ Per Week | Equivalised Net Disposable Household Income, Before Housing Costs | Equivalised Net Disposable Household Income, After Housing Costs |
Scotland’s median in 2004-05 | 349 | 313 |
Scotland’s median if it followed a GB growth rate since 1996-97 | 339 | 301 |
Scotland’s median if it followed a GB growth rate since 1998-99 | 343 | 305 |
Source: Households Below AverageIncome, DWP.
Further information can be foundin the latest Scottish Households Below Average Income 2004-05 publicationhttp://www.scotland.gov.uk/Resource/Doc/95793/0023203.pdf.
Notes:
Net disposable household income: Total income after deductions for income tax,National Insurance Contributions, council tax, pension contributions and maintenancepayments.
Housing costs: Net disposable income but with rent/mortgage payments,water charges, structural insurance premiums, ground rent and service charges deducted.
Equivalised net disposable householdincome: “Equivalised” Income is used to allowcomparisons of living standards between different household types. Income is adjustedto take into account variations in the size and composition of the household. Thisadjustment reflects the fact that a family of several people requires a higher incomethan a single person in order for both households to enjoy a comparable standardof living. The key assumption is that all individuals in the household benefit equallyfrom the combined (equivalised) income of the household. There are distinct equivalencescales used for income before housing costs (BHC) and income after housing costs(AHC).
Median: The income valuewhich divides a population, when ranked by income, into two equal-sized groups.The measure is most commonly used to represent average income due to the highlyskewed nature of the income distribution, which leads to the very high incomes ofa few having a disproportionate impact on the mean.