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Title:
Effects of Taxes and Benefits on Household Income, 2003-2004

Subject Categories:
Income, property and investment - Economics

Depositor(s):
Office for National Statistics

Principal Investigator(s):
Office for National Statistics

Original Producer(s):
Office for National Statistics

Abstract:
This analysis examines how taxes and benefits redistribute income between various groups of households in the United Kingdom. It shows where different types of households and individuals are in the income distribution and looks at the changing levels of income inequality over time.

Main Topics:
The analysis considers the distribution of household income using five income measures in order to assess the effect of government intervention. The five income measures are:

• original income: includes income from employment, self-employment, investment income, occupational pensions and annuities
• gross income: original income plus cash benefits
• disposable income: gross income minus direct taxes (income tax, employees' National Insurance contributions and local taxes)
• post-tax income: disposable income minus indirect taxes
• final income: post-tax income plus benefits in kind (from education, the National Health Service (NHS), travel and housing subsidies)

Coverage:
Time Period Covered: 01 April 2003-31 March 2004
Country: United Kingdom
Spatial Units: No spatial units are used in these data, but the original data sources Expenditure and Food Survey (EFS) and Family Expenditure Survey (FES) use Government Office Region.
Observation Units: Families/households

Universe Sampled:
Location of Units of Observation:National
Population:Private households in the United Kingdom: a 'household' is defined as comprising people living at the same address and sharing common catering for at least one meal a day. People living in hotels, lodging houses and in institutions such as old people's homes are not included.

Methodology:
Time Dimensions: Repeated cross-sectional study
Data are drawn annually from the EFS.
Sampling Procedures: The EFS uses a multi-stage stratified random sample.
Number of Units: 7048 (obtained)
Method of Data Collection: Compilation or synthesis of existing material
Weighting: A weighting variable labelled 'weighta' is included in the data: this is the household weighting variable from the EFS (previously the FES). See EFS/FES documentation for further details.
Data Sources: The Expenditure and Food Survey (EFS) is the source of the micro data on households from 2001-2002 onwards. Previously, the Family Expenditure Survey (FES) was the data source. Derived variables are created using information from EFS/FES and control totals from a variety of different government sources.; The Expenditure and Food Survey, 2003-2004 (EFS), held at the UK Data Archive (UKDA) under SN 5210, was used as the main source of data for this study, although some variables were created by combining data from the EFS with data from other sources.

Language(s) of Written Materials:
Study Description: English
Study Documentation: English

Access:
Access Conditions: The depositor has specified that registration is required and standard conditions of use apply. The depositor may be informed about usage. See terms and conditions for further information.
Availability: ESDS Access and Preservation, UK Data Archive
Contact: Help desk: help@esds.ac.uk

Date of Release:
First Edition: 11 August 2005

Copyright:
Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen's Printer for Scotland

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