Gross disposable household income

Summary 

Overview

Gross disposable household income (GDHI) is the amount of money that all of the individuals in the household sector have available for spending or saving after they have paid direct and indirect taxes and received any direct benefits. GDHI is a concept that is seen to reflect the “material welfare” of the household sector.

Important notes

It should be noted that these estimates relate to totals for all individuals within the household sector for a region, or area, rather than to an average household or family unit. GDHI per head are estimates of values for each person, not each household.

GDHI estimates are provided by the Office for National Statistics (ONS) at the UK level and for the three European-defined geographic statistical levels (the nomenclature of units for territorial statistics (NUTS1, 2 and 3)). NUTS1 geographies are regions. The Lancashire-14 area is a NUTS2 sub-region. There are 6 NUTS3 local areas in the Lancashire-14 NUTS2 area. The ONS also publishes GDHI estimates for 391 local authority or local council areas in the UK, however, these estimates are not classified as National Statistics and awareness of potential inaccuracies should be borne in mind when analysing and interpreting this level of data. The Lancashire-12 estimates of GDHI have been calculated from the estimates of GDHI for the 4 individual NUTS3 geographies in the Lancashire-12 area, which are more robust.

Total GDHI for the UK, North West, Lancashire-14 NUTS2 area and Lancashire-12 area

The Lancashire-14 NUTS2 area had a total gross disposable household income (GDHI) in 2016 that amounted to £24.064bn. This sum represented 1.9% of the UK total (£1,275.7bn) and a fifth of the overall figure for the North West region (£121.1bn).

The GDHI total for the Lancashire-14 NUTS2 area in 2016 was the 27^th highest out of the 41 UK NUTS-2 sub-regions in a range that extended from Surrey, East and West Sussex (£69.12 bn) to the Highlands and Islands (£8.566 bn).

Between 2015 and 2016, the GDHI total in the UK increased (provisionally) by 1.5% (£18.817bn). This was the second lowest yearly percentage increase in the series (since 1997/98), unadjusted for inflation. This contrasts to the very strong growth seen in the UK (6.2%) for the previous year, between 2014 and 2015, which was the second highest in the series. A similar pattern is apparent for the Lancashire-14 NUTS2 area and most of the local authorities and NUTS3 areas in the Lancashire sub-region.

Of the 11 regions that saw a rise between 2015 and 2016, the North West GDHI total increased by the lowest percentage (0.5%, £0.61bn).

The provisional percentage rise in the GDHI total for the Lancashire-14 NUTS2 area of 0.6% (0.135bn) was one of the lowest NUTS2 percentage increases between 2015 and 2016 and well below the UK rise of 1.5%. It was also the second lowest yearly percentage rise for the Lancashire-14 NUTS2 in the series (since 1997/1998). Between 1997 and 2016 the GDHI percentage rise in the Lancashire-14 NUTS2 sub-region (78.3%) was the fifth lowest in the UK (out of 41 NUTS2 sub-regions). By comparison, GDHI in the UK rose by 102.2% over the period and by 81.9% in the North West.  

Total GDHI for the Lancashire-12 area was £20.145bn in 2016. It increased provisionally by 0.4% (£82m) between 2015 and 2016, well below UK percentage rise. However, between 1997 and 2016, total GDHI increased by 84.4% (+£9.22bn) in the Lancashire-12 area. This was greater than the 78.3% increase in the Lancashire-14 NUTS2 area. The poor performance in both Blackburn with Darwen and Blackpool since 1997 account for this difference.

Total GDHI for the Lancashire NUTS3 areas. 

Looking at the six NUTS3 areas within the Lancashire-14 area, the Mid Lancashire NUTS3 area had the largest GDHI total of £6.926bn, followed by the NUTS3 areas for East Lancashire (£4.860bn), Chorley and West Lancashire (£4.242bn), Lancaster and Wyre (£4.117bn), Blackpool (£2.071bn), and Blackburn with Darwen (£1.848bn).

Four of the 6 NUTS3 areas in the Lancashire-14 NUTS2 sub-region recorded provisional increases in total GDHI between 2015 and 2016, ranging from 0.1% in East Lancashire, to 1.4% in the Lancaster and Wyre NUTS-3 area, 1.9% in the Chorley and West Lancashire NUTS3 area, and 2.6% in the Blackpool NUTS3 area. The Mid Lancashire NUTS3 area saw a provisional reduction in total GDHI between 2015 and 2016 of -0.9%, unadjusted for inflation (UK = 1.5%). The GDHI total for the Blackburn with Darwen NUTS3 area was provisionally unchanged over the year.

Of the six NUTS3 areas in the Lancashire-14 NUTS2 area, total GDHI in the Chorley and West Lancashire area increased provisionally by the largest percentage of 98.0% between 1997 and 2016, followed by Lancaster and Wyre (87.3%), East Lancashire (80.2%), Mid Lancashire (78.1%), Blackburn with Darwen (57.1%) and Blackpool (48.2%). However, all of these percentage increases were lower than the UK rise of 102.2% (unadjusted for inflation). 

The percentage growth in total GDHI in the Blackpool NUTS3 area was the lowest of the 179 NUTS3 areas in the UK between 1997 and 2016 (provisionally), whilst percentage growth in the Blackburn with Darwen NUTS3 area was the fourth lowest. 

Total GDHI for Lancashire local authorities. 

At the local authority level within the Lancashire-14 area, total GDHI ranged between £2.547bn in Preston, to £1.045bn in Ribble Valley. 

Between 2015 and 2016, six of the Lancashire-14 local authority areas saw provisional decreases to their GDHI totals, ranging between -0.1% in Burnley to -1.3% in South Ribble. The GHDI total for Blackburn with Darwen was unchanged. The seven percentage increases ranged from 0.2% in Pendle to 2.6% in Blackpool. The provisional percentage increases for Blackpool (2.6%), Chorley (2.0%), West Lancashire (1.9%) and Lancaster (1.9%) were greater than the UK percentage rise of 1.5% over the year. 

In the Lancashire-14 area, only Chorley (108.6%) saw a provisional percentage increase to its GDHI total that was greater than the UK rise (102.2%) between 1997 and 2016. The next highest percentage increases were seen in Lancaster (93.0%), Rossendale (90.9%) and West Lancashire (88.4%).

Total GDHI percentage growth in the Blackpool unitary authority area (48.2%) was the lowest of the 391 local authority areas in the UK between 1997 and 2016, whilst the percentage growth in the Blackburn with Darwen unitary authority area (57.1%) was the fifth lowest. Ten of the Lancashire-14 local authority areas saw percentage increases in the lower third of the percentage increase rankings since 1997. 

GDHI per head in the UK, North West, Lancashire-14 NUTS2 area and Lancashire-12 area

The GDHI per head figure for the Lancashire-14 NUTS2 area in 2016 was provisionally estimated at £16,217. This was the eleventh lowest of the 41 NUTS2 areas and was 16.5%, or just under a sixth, lower than the UK average (£19,432).

The Lancashire-14 NUTS2 figure was ranked third of the five North West sub-regions, above Merseyside (£15,924) and Greater Manchester (£15,917), but below Cheshire (£20,458) and Cumbria (£18,826).

GDHI per head in the Lancashire-14 NUTS2 area increased provisionally by 69.6% between 1997 and 2016 - lower than the UK percentage rise (79.6%). The Lancashire-14 NUTS2 percentage rise in GDHI per head was the eighth lowest of the 41 NUTS2 areas in the UK between 1997 and 2016 (unadjusted for inflation). In the North West, only the Cumbria (87.9%) and Cheshire (79.7%) recorded greater percentages increases than the UK (79.6%) between 1997 and 2016.

Between 1997 and 2008, with the exception of 2005, the GDHI per head figure for the Lancashire-14 NUTS2 area exhibited a pattern of slow overall decline relative to the UK average. From a percentage of 88.4% of the UK average in 1997, the figure fell to 85.2% by 2008. Perhaps surprisingly, the percentage recovered in the wake of the 2008/09 recession, posting indices of 87.2 in 2008 and 2009, and 87.5 in 2010. This suggests that the Lancashire-14 NUTS2 area was impacted less severely by the recession than some other areas of the UK. However, after this period, the indices have deteriorated further to reach the latest figure of 83.5% of the UK average in 2016.

The provisional GDHI per head figure for the Lancashire-12 area in 2016 was £16,852. This was 13.3% (or more than an eighth) below the UK average (£19.432).

GDHI per head in the Lancashire-12 area increased provisionally by 73.9% between 1997 and 2016. This was a lower percentage rise than seen in the UK (79.6%), but greater than the Lancashire-14 NUTS2 area rise (69.6%), unadjusted for inflation.

Between 1997 and 2008, the GDHI per head figure for the Lancashire-12 area fluctuated more, and overall displayed less of a decline relative to the UK average than the Lancashire-14 NUTS2 figures (which fell from 88.4% of the UK average in 1997, to 85.2% by 2008 (-3.2 percentage points). In the Lancashire-12 area, the GDHI per head figure decreased from 89.6% of the UK average in 1997, to 88.6% in 2008 (-1.0 percentage point). Similar to the Lancashire-14 NUTS2 sub-region, the GDHI per head figure for the Lancashire-12 area recovered relative to the UK average in the wake of the 2008/09 recession, posting indices of 90.8% (in 2009), 90.5% (in 2010) and 90.7% (in 2011). Again, this also suggests that the Lancashire-12 area was impacted less severely by the recession than some other areas of the UK. However, after this period, the indices have deteriorated to the latest figure of 86.7% of the UK average in 2016.

GDHI per head for the Lancashire NUTS3 areas. 

The Chorley and West Lancashire NUTS3 area (£18,660) and the Mid Lancashire NUTS3 area (£17,843) had the highest provisional GDHI per head figures in the Lancashire-14 area in 2016, which were 4.0% and 8.2% below the UK average. 

GDHI per head for the Lancaster and Wyre NUTS3 area (£16,355) in 2016 was 15.8% lower than the UK average and fell in the bottom third of the NUTS3 rankings. 

The GDHI per head figures for East Lancashire (£14,808) and Blackpool (£14,795) fell roughly an eighth from the bottom of the NUTS3 GDHI per head rankings in 2016 and at 23.8% and 23.9% below the UK average, respectively, were almost a quarter lower. 

Blackburn with Darwen NUTS3 area (£12,450) was the second lowest in the NUTS3 GDHI per head rankings, more than a third lower (35.9%) than the UK average. 

Locally, between 1997 and 2016, GDHI per head for each of the six NUTS3 areas in the Lancashire-14 sub-region increased by lower percentages than the UK increase (79.6%). The Chorley and West Lancashire (79.3%), East Lancashire (78.0%) and Lancaster and Wyre NUTS3 areas saw the largest percentage rises in the Lancashire-14 sub-region since 1997. These were all in the top half of the NUTS3 GDHI per head percentage rise rankings. The percentage increase for the Mid Lancashire NUTS3 area (65.0%) over the period was about a fifth from the bottom of the rankings.

The Blackburn with Darwen NUTS3 area (46.9%) saw the lowest percentage increase in its GDHI per head figure in the UK between 1997 and 2016. Blackpool (54.2%) recording the sixth lowest percentage increase in the UK over the period.

Table showing GDHI per head of population for the top and bottom five NUTS3 areas, plus the UK, North West region and Lancashire NUTS3 areas, 2016

Area	GDHI per head, 2016 [1] (£)	GDHI per head index (UK=100)	GDHI per head growth, 1997 to 2016 [1] (%)	Average of individual yearly percentage increases in GDHI per head, 1997 - 2007 (%)	Average of individual yearly percentage increases in GDHI per head, 2007 - 2015 (%)	GDHI per head growth, 2015 to 2016 [1] (£)	GDHI per head growth, 2015 to 2016 [1] (%)
NUTS3 areas with the top five GDHI per head figures
Kensington & Chelsea and Hammersmith & Fulham	58,816	302.7	112.9	4.7	4.2	-796	-1.3
Westminster	50,910	262.0	141.5	6.0	4.1	-601	-1.2
Camden and City of London	45,225	232.7	143.1	6.8	3.1	92	0.2
Wandsworth	37,288	191.9	166.1	7.7	2.9	1,024	2.8
Hounslow and Richmond upon Thames	31,505	162.1	80.0	3.3	2.9	1,116	3.7
GDHI per head figures for the six NUTS3 areas in the Lancashire-14 area and for the UK and North West
United Kingdom	19,432	100.0	79.6	3.8	2.6	128	0.7
Chorley and West Lancashire (ranked 76)	18,660	96.0	79.3	3.6	2.8	204	1.1
Mid Lancashire (ranked 90)	17,843	91.8	65.0	3.4	2.3	-240	-1.3
North West region	16,761	86.3	71.1	3.5	2.5	-29	-0.2
Lancaster and Wyre (ranked 125 (55th lowest))	16,355	84.2	77.0	3.8	2.4	143	0.9
Lancashire-14 NUTS2	16,217	83.5	69.6	3.4	2.4	15	0.1
East Lancashire (ranked 157 (23rd lowest))	14,808	76.2	78.0	3.9	2.5	-56	-1.3
Blackpool (ranked 159 (21st lowest))	14,795	76.1	54.2	2.2	2.4	391	2.7
Blackburn with Darwen (ranked 178 (2nd lowest))	12,450	64.1	46.9	2.6	1.7	-47	-0.4
NUTS3 areas with the lowest five GDHI per head figures (including Blackburn with Darwen)
Manchester	13,184	67.8	83.6	4.1	2.7	-5	0.0
Sandwell	13,164	67.7	60.9	2.7	2.7	-78	-0.6
Leicester	12,848	66.1	53.9	2.6	2.0	249	2.0
Blackburn with Darwen (ranked 178 (2nd lowest))	12,450	64.1	46.9	2.6	1.7	-47	-0.4
Nottingham	12,232	62.9	47.3	2.4	2.1	-165	-1.3

Note: [1] 2016 figures are provisional

Source ONS: Regional gross disposable household income (GDHI), 1997 to 2016 (provisional)

GDHI per head for Lancashire local authority areas. 

All of the local authority areas in the Lancashire-14 area had provisional GDHI per head estimates that fell in the lower half of the UK GDHI per head rankings in 2016. Chorley (£18,696), West Lancashire (£18,623), Ribble Valley (£18,086) and Preston (£18,057) had the highest estimates in the area (all above £18,000 per head). These estimates were 3.8%, 4.2%, 6.9% and 7.1% below the UK GDHI per head average (£19,432), respectively.

Blackburn with Darwen (£12,450) had the second lowest provisional GDHI per head figure in the UK in 2016, which was 35.9% below the UK average. The GDHI per head estimates for Burnley (£14,604), Pendle (£14,628), Blackpool (£14,795) and Hyndburn (£14,818) also fell in the lowest 8% of GDHI per head rankings. These were all below £15,000 per head and were 24.8%, 24.7%, 23.9% & 23.7% lower than the UK GDHI per head average, respectively.  

Between 1997 and 2016, only three of the Lancashire-14 local authority areas saw their GDHI per head estimates increase by more than the UK rise of 79.6% (unadjusted for inflation). These were Lancaster (83.1%), Hyndburn (80.1%) and West Lancashire (79.8%). However, the percentage increases for Chorley (78.7%), Rossendale (78.3%), Pendle (77.2%) and Burnley (76.4%) fell in the top half of the rankings for the GDHI per head percentage increases between 1997 and 2016.

Of note is the fact that Burnley (-3.8%, -3,482 people) and Hyndburn (-0.3%, -256 people) saw their populations decrease between 1997 and 2016. These reductions may have helped to boost the 'per head' figures for these areas. The low growth in population figures for some of the other Lancashire-14 local authority areas may also boost their 'per head' growth figures compared to other LA areas in the UK that have seen greater percentage increases in population.

Seven of the Lancashire-14 local authority areas saw their increases in GDHI per head estimates positioned in the lower half of the percentage rise rankings between 1997 and 2016.

Out of the 391 local authorities in the UK, Blackburn with Darwen (46.9%) saw the second lowest percentage increase in its GDHI per head figure between 1997 and 2016. The percentage increase in Blackpool (54.2%) was the tenth lowest in the UK over the period.

The provisional GDHI per head increases for Ribble Valley (60.7%), South Ribble (61.8%) and Fylde (61.8%) fell in the bottom eighth of the percentage increase rankings between 1997 and 2016. The percentage increase for Wyre (69.1%) was in the lower 30% of the rankings. The percentage increase for Preston (71.1%) was in the lower 40% of the rankings.

For an expanded summary, full analysis and additional tables, please see the PDF report in the further information box below. 

Page updated 23 November 2018