Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
Disposable household income
Money a household receives after direct taxes have been taken off and cash benefits have been added.
Key term
What it means
Add up the income of the people living in a household, including pay, pensions and cash benefits, then take off direct taxes such as Income Tax and Council Tax. What remains is disposable household income: money available for spending or saving. It is measured before paying rent, food, energy bills and most other living costs. So “disposable” does not mean spare money for treats.
Example
In a made-up year, a household receives £40,000 from pay and £5,000 in cash benefits, and pays £10,000 in direct taxes. Its disposable household income is £35,000 before rent and other bills.
Why it matters
It gives a clearer picture of a household's money than pay alone, but it does not say how much the household has left after essential costs.
Related terms
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Equivalised income
Household income adjusted so that households of different sizes can be compared more fairly.
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Income after housing costs
Household income after taking off specified housing costs, including rent or mortgage interest.
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Income before housing costs
Household income measured before rent and certain other housing costs are taken off.
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Material deprivation
Going without things or activities considered part of a decent standard of living because you cannot afford them.
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Means testing
Checking a person's income and sometimes savings to decide whether they qualify for help or how much they receive.
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Median household income
The middle household income when households are put in order from lowest income to highest.
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Value added tax (VAT)
A UK tax added to the price of many goods and services people buy.
Read more
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Highlights from about the UK economy, the UK government and the UK public sector.
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Guides and insights
Analysis
Clear, accessible analysis of the economic issues shaping everyday life
Living standards
What does a day’s work buy?
Comparing the cost of everyday life across generations, from bread and beer to buying a home.
Food & prices
The journey behind your grocery bill
How farming, energy, transport and supermarket competition shape the price on the shelf.
Prices & inflation
Inflation is falling. What happens next?
What slower price rises mean for wages, purchasing power and economic recovery.
Shared prosperity
What would shared prosperity look like?
Beyond GDP: how we could measure economic success through security, opportunity and living standards.
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