Pensioner income soars but workers still worse off

mature couple outdoors

Pensioners have seen their income soar while millions of working people are still worse off than before the financial crisis, official figures revealed today.

The average disposable income for retired households rose by 13 per cent, and is now £2,500 higher at £21,770, than in 2007/08.

But for non-retired households it has decreased by 1.2 per cent over the same period to £28,481, and is £300 lower in 2015/16 than eight years ago.

Senior statistician Claudia Wells said: “Household incomes are above their pre-downturn peak overall, but not everyone is better off.

“While retired households’ incomes have soared in recent years, non-retired households still have less money, on average, than before the crash.”

The findings are likely to fuel calls for the Government to means test some benefits for pensioners such as the winter fuel allowance.

The ONS figures showed average UK household disposable income was £26,300 in 2015/16, £600 higher than the previous year and around £1,000 higher than its pre-downturn peak in 2007/08.

Retired households had seen income grow due to several factors including private pensions and the “triple lock” for the State pension which means it goes up by at least 2.5 per cent a year.

The fall in average disposable income for non-retired households after the economic downturn reflected largely a fall in wages.

Median disposable income for the poorest fifth of households rose £700 (5.1 per cent) in 2015/16 to £13,600.

In contrast the income of the richest fifth of households fell by £1,000 (1.9 per cent) over the same period to £53,400.

 

This article was written by NIcholas Cecil from Evening Standard, London and was legally licensed through the NewsCred publisher network.