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Cash Rich Britain

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British households have more cash in the form of disposable income than ever before, having finally passed the previous peak achieved before the financial crisis.

Years of recession and then low growth, inflation and slow productivity growth since then have combined to dampen pay growth and living standards.

But now, even after taking into account price rises and changes to family composition, disposable incomes are at a record high, according to the Office for National Statistics.

The median household earned £26,400 after direct taxes and benefits in the financial year ending in March, up £700 on the previous year, and £400 above the previous high of £26,000 in 2007-08.

The biggest increase was enjoyed by retired households, whose disposable income of £21,500 is up £1,700 on the 2007-08 level.

Working households still have some ground to recover, with an average disposable income of £29,200, which is £400 short of the pre-crash level.

Economists are worried, however, that the fall in the pound since the EU referendum could cause a spike in inflation as imported goods become more expensive.

Inflation word is coming often. What comes next ?

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I thought disposable income was what was left after paying the essentials. If the average that is left after rent etc is £580 per week then I have to accept that I am an abject failure.

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I thought disposable income was what was left after paying the essentials. If the average that is left after rent etc is £580 per week then I have to accept that I am an abject failure.

Disposable income is before rent, transport, energy, food etc.

Discretionary income is what's left after the necessities.

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Disposable income is before rent, transport, energy, food etc.

Discretionary income is what's left after the necessities.

Thank you. In which case disposable income is a totally pointless measure.

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Another pointless analysis.

You can't say 'disposable incomes up - yea!' without also referring to any increases in necessary expenditure - which are likely to be significant over the period in question.

At face value, the pensioner households in that survey look as though they're a bit harder up than working households. Clearly this is not likely to be the case.

The ONS should report the changes in discretionary incomes.

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It assumes that the figures are correct and not made up or twisted. That's a big assumption. Lots of retired households rely on savings interest and in the main it's retired public sector households who have inflation proofed retirement incomes (or used to). How a retired household can increase savings interest income when interest rates have been constantly reduced to next to nothing since 2007/2008 is just one of those mysteries - and the retirement income figures being quoted are well above the level of the state pension which admittedly does offer some inflation protection. As for annuity rates they've dropped massively in recent years since 2007/2008 and I guess most annuities are fixed not inflation proofed.

It must be the averages are being pushed up by retired bankers and politicians and their massive gold plated inflation proofed pensions. Plus some retired BtLers income perhaps.

In any event more than your average retired person type.

One suspects that the statistic and propaganda twister crooks have been at work yet again.

Edited by billybong

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"£400 above the previous high of £26,000 in 2007-08."

So its took ten years to be 8 GBP/week better off if you forget inflation / devaluation during the 9 years between the two points selected.

I wonder how much the Telegraphs circulation has dropped between then and now.

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Where to begin with this....

Why is it called "disposable" - this implies you can choose between paying rent and energy costs and simply forgetting about them for a few months. They are essentials.

Rent and energy costs have shot up over the last 9 years, wages have stagnated. What counts is what you have AFTER your essentials are paid for.

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Disposable income is before rent, transport, energy, food etc.

Discretionary income is what's left after the necessities.

When did we all agree on that bit of newspeak?

If you say 'disposable income' to anyone they picture money you can choose to go see a movie or buy an iPad with. Not the money you spend on electric bills or the mortgage.

It's akin to the endless attempts to confuse people about 'paying down the deficit' - i.e. yet another way to lie with misleading language and cherry-picked statistics.

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Disposable income is before rent, transport, energy, food etc.

Discretionary income is what's left after the necessities.

Sorry but this is wrong according to the FCA and all accepted practices in the 'debt industry'. See CONC8

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But...but...but I got my info from an impeccable source!

WIKIPEDIA LINK

:lol:

I think it's a tomato/tomato thing. The UK debt industry definitely uses the term to describe income after essentials. I suppose it doesn't matter in reality. You're either skint or your not.

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Telegraph: Britons better off than ever as disposable incomes jump to record high

Link: http://www.telegraph.co.uk/business/2016/08/17/britons-better-off-than-ever-as-disposable-incomes-jump-to-recor/

"Private sector workers were paid 5pc less than those in the public sector by 2011, and the gap even spiked to 7pc in 2013."

..........this is the sign of a banana republic ....... :rolleyes:

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When did we all agree on that bit of newspeak?

If you say 'disposable income' to anyone they picture money you can choose to go see a movie or buy an iPad with. Not the money you spend on electric bills or the mortgage.

It's akin to the endless attempts to confuse people about 'paying down the deficit' - i.e. yet another way to lie with misleading language and cherry-picked statistics.

Disposable income is the money you have before you pay for indisposable necessities - newspeak indeed. Was there ever a point when Orwell WASN'T spinning in his grave?

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As i said on another thread earlier. I've never seen Waitrose as busy as it was today.

That's in 13 years in this town.

Sharp elbowed blue rinsers everywhere.

Great to see excess cash in the economy used to promote social mobility in the young instead of being funneled to oldies to buy tat.

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And yet only a few weeks back we had a study which found that a third of middle class professionals would have to resort to borrowing money if faced with an unexpected bill of £500.

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And yet only a few weeks back we had a study which found that a third of middle class professionals would have to resort to borrowing money if faced with an unexpected bill of £500.

Indeed. The problem with disposable income is people can't wait to dispose it. I wonder how much of that 'record' disposable income is servicing interest on debt.

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