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 before housing costs
Household income measured before rent and certain other housing costs are taken off.
What it means
In UK income and poverty statistics, before housing costs (BHC) usually means income after taxes and cash benefits but before deducting specified housing costs. Published figures are commonly adjusted for how many adults and children share the household. “Before” describes how the figure is calculated: people still have to pay for their homes. Read it alongside income after housing costs to see how much of a difference those costs make.
Example
A household has £400 a week after tax and benefits and pays £100 a week in rent. Its income before housing costs is £400; after deducting that rent it is £300, before any adjustment for household size.
Why it matters
Two households with the same income before housing costs may have very different amounts left once they have paid for housing.
Also known as
before housing costs income
BHC income
Related terms
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Disposable household income
Money a household receives after direct taxes have been taken off and cash benefits have been added.
Read more -
Equivalised income
Household income adjusted so that households of different sizes can be compared more fairly.
Read more -
Income after housing costs
Household income after taking off specified housing costs, including rent or mortgage interest.
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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