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.
Income after housing costs
Household income after taking off specified housing costs, including rent or mortgage interest.
What it means
In UK income and poverty statistics, after housing costs (AHC) starts with income after taxes and cash benefits and deducts certain costs of having a home. These include rent or mortgage interest, along with some other costs such as water charges and buildings insurance. It does not subtract the part of a mortgage payment that pays down the loan. Published figures are commonly adjusted for household size. Nor does “after housing costs” mean after food, heating and other bills.
Example
A household has £400 a week after tax and benefits and pays £100 a week in rent. Its income after housing costs is £300 before any adjustment for household size. A published comparison may then adjust that £300 for the people in the household.
Why it matters
Housing costs vary widely. This measure can reveal pressure on a household that a figure before housing costs would hide.
Also known as
after housing costs income
AHC income
Related terms
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Absolute poverty
Having a household income below a line set using a reference year and then adjusted as prices change.
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Disposable household income
Money a household receives after direct taxes have been taken off and cash benefits have been added.
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Equivalised income
Household income adjusted so that households of different sizes can be compared more fairly.
Read more -
Housing cost burden
The share of a household's income spent on paying for its home.
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Income before housing costs
Household income measured before rent and certain other housing costs are taken off.
Read more -
Material deprivation
Going without things or activities considered part of a decent standard of living because you cannot afford them.
Read more -
Relative poverty
Having a household income below a set share of what the middle household receives in the same year.
Read more
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