The average disposable household income across the UK rose by 3.5% to £39,200 in 2025, the latest official estimates show.

It is arguably the most widely-used measure of household income, according to the Office for National Statistics and reflects the median amount households have left after paying income tax, national insurance and council tax.

Among the poorest fifth of the population, median disposable income rose by 5.6% to £18,300, taking it back in line with pre-pandemic levels seen in the financial year ending 2020.

For the richest fifth, median household disposable income increased by 5% to £77,000, returning to levels last seen in the financial year ending 2021 following two years of decline.

The ONS says that income inequality remained broadly unchanged, falling slightly by 0.2 percentage points to 32.7%.

The ratio between mean disposable income for the richest and poorest fifths of households was unchanged, with income among the richest fifth 5.6 times higher than among the poorest fifth.

The figures cover the period from April 2024 to March 2025 and are based on the ONS Household Finances Survey.

The ONS cautioned that the survey sample for the latest year was notably smaller following the end of the Survey of Living Conditions, estimates are subject to greater uncertainty.