Household Income Distribution in the UK: Research Analysis in 2018

This essay reflects on a presentation analyzing household income distribution in the UK, focusing on trends, inequality, and poverty. It highlights the definition of household income, changes in average incomes, and the impact of factors like employment rates and taxation. The analysis references data up to 2017, noting the mean and median income levels, and discusses the effects of poverty and disposable income on different segments of the population. The essay also touches upon the role of direct and indirect taxes in income distribution and the varying economic conditions of retired and non-retired households, concluding with an understanding of the current economic status and its implications for future career prospects.

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Introduction to Research In Business Economics

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Reflection as per the slides made:
After going through the power point presentation, I have developed a clear idea upon the
research in business economics. As per the slides, I have gained subtle knowledge about
household income. I understood that household income is equivalent to an accumulated income.
This is the totality of all the earnings of the members residing at the same place. I came to know
that the income is related the remunerations as well as the advantages. I learnt that household
income is often considered as an economic factor.
From the references cited, it was clear that the household income deals with a wide variety of
population. To add to this, I have also gained knowledge about disposable income. The statistics,
graphs and the flowcharts used in the presentation gives a better understanding upon the subject.
The illustrations make my job easier and I can apply these in the practical grounds. The
comparisons made and the detailed statistical information gives me proof of the real conditions
prevailing in United Kingdom. The disposable earnings of the poorer classes in the population of
UK, has widened its scope when it is differentiated with the pre downturn levels. On the
contrary, the disposable earnings of the richer class in the population have lowered (Cantillon,
Collado & Mechelen, 2015).
Currently, i have gained knowledge from the financial year ending of 2017 in UK. According to
the study, it has been noticed that the mean income level of the country is £32,700 which is more
than the median level which is £27,300. From the poverty aspect, UK now is a rich country. I got
evidences to state the above fact on the basis of the statistics provided in the presentation. An
individual now earns £4 per day on an average basis. Looking back in 2008 I saw there was a
downfall in the economy. The recent trends however show a different picture. The GDP per
individual is now in accordance with the inflation in the National Accounts. The median is
accordance with the price index. The slides provide me with a vivid idea about the highest
household range as well. I learnt that this range is from £17,000 to £18,000. I also learnt that
there are many tax benefits for the same. On opining upon the statistics of the presentation, I
could make out that the households possess more disposable income now, when compared with
the former times. With the increase in the employment rates, there has been an increase in the

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levels of total incomes in the families residing in UK. These two factors are directly proportional
to each other.
With the taxation, the benefits are more established. I can say this because, the estimates can
now be more precise based on the incomes of the individuals. Consequently, the standard of
living of the people has increased to a better position as well. After going through the survey of
the Department for Work and Pensions from the Family Resources Survey a greater standard of
precision can be achieved, I feel. To add to this, the HBAI incorporates the advantages and
specifications when compared to ETB. The comparisons made of the different periods of time
gives me a clear idea upon the development process in the country. The mean and the median of
the household income show how the levels have increased. This has also initiated the
development in the gross domestic product. The effect of the cash benefits is related. A balance
is maintained between the rich and the poorer sections of the people. I came to know the
importance of direct taxes and how it helps in the decrease of inequalities. I learnt that the
indirect taxes too possess an important role in the distribution of the income. I have also gained
knowledge about the retired and the non-retired households with a vivid summary of the mean
and gross earnings of the retired and the non-retired households in 2007. This had further
increased by 31% in 2012. The ratio of individuals retiring with private individuals is increasing.
There are around 4 million employees under poverty in UK (Liddell, Morris, McKenzie, & Rae,
2012). I understood what the consequences of the increase are in the absolute regular pay. There
has been an increase in the gross household disposable income per individual too. However
around 14 million of the population of are under inconvenience due to poverty (Cribb, Hood,
Joyce & Phillips, 2013). The effects of poverty lead to lower standards of living than the
expectancy lifestyle. The health of the individuals is affected due to poverty as well. The average
earnings of for the UK households is £425per week in 2016 and 2017.
Thus, I now possess a deep understanding upon the effects of poverty, household incomes and
present status in UK. I have gathered immense knowledge to work upon this and also build my
career in the macroeconomic level.

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References
Cantillon, B., Collado, D., & Van Mechelen, N. (2015). The end of decent social protection for
the poor? The dynamics of low wages, minimum income packages and median household
incomes. Energy Policy, 49, 35-46.
Cribb, J., Hood, A., Joyce, R., & Phillips, D. (2013). Living standards, poverty and inequality in
the UK: 2013 (No. R81). IFS Reports, Institute for Fiscal Studies.
Liddell, C., Morris, C., McKenzie, S. J. P., & Rae, G. (2012). Measuring and monitoring fuel
poverty in the UK: National and regional perspectives. Energy Policy, 49, 27-32.