Recovery complete as average income rises above pre-recession levlels
The average income in the UK moved above its 2009-10 peak in 2014-15, official figures show, owing to a rise in the number of people in work.
The mid-point net income of all households in the UK was up 3% after inflation. That meant average income before housing costs reached £473 per week – around £24,600 a year, the Department for Work and Pensions (DWP) said.
This income had fallen during the financial crisis. There was little change in the gap between rich and poor, as has been the case since 2011-12, the figures showed.
However, the data revealed that on one measure child poverty had increased, and in two other measures it was unchanged in 2014-15 compared with the previous year.
“Child poverty isn’t inevitable – the government needs to invest in our children so we can all share the rewards of a stronger economy and a fairer society,” said Alison Garnham, chief executive of Child Poverty Action Group.
Work and Pensions Secretary Stephen Crabb said: “There is of course still more to do and that is why our Life Chances Strategy will look at the root causes of poverty whether that is worklessness, debt or addiction, family breakdown or educational attainment. It is only by doing this that we can truly tackle poverty and ensure everyone succeeds in life.”