Income Distribution Report Published

06 May 2022

Statistics Jersey have today published the income distribution analysis from the 2019/2020 Living Costs and Household Income Survey. This was a large survey of Jersey households that started in July 2019 and was planned to run for over a year. The survey involved face-to-face interviews in people’s homes; as a result, the survey had to be cut short in March 2020 due to covid-19 public health measures introduced at that time. Less than half of the expected response was achieved, which has constrained the statistics and analyses which can be produced for this report.

Summary

Key statistics:

Mean household income was £1,040 per week before housing costs, and £890 per week after housing costs

There was a real-term increase of 9% (adjusted for inflation) in mean income after housing costs since 2014/2015; the nominal increase (without adjusting for inflation) was 24%

Median equivalised household income was £790 per week before housing costs, and £690 per week after housing costs

There was a real-term increase of 9% in median income after housing costs since 2014/2015; the nominal increase was 23%
Median household income was 44% higher in Jersey than the UK

After housing costs, 27% of households and 22% of individuals were living in relative low income (RLI), defined as household income below 60% of median income: £480 per week before housing costs, and £410 per week after housing costs

One in four (27%) households were in RLI, a higher proportion than the UK (22%)
One in five (22%) individuals were in RLI, the same proportion as the UK (22%)
One in four (25%) children were in RLI, a lower proportion than the UK (31%)
One in three (34%) pensioners were in RLI, twice the proportion of the UK (18%)

Households living in rental accommodation (including the qualified, social, and non-qualified sectors) spent, on average, around a third (32%) of their income on housing costs – the same proportion as in 2014/2015

Key themes

Since 2014/2015, mean and median household incomes have increased by more than inflation (as measured by the Retail Prices Index)
The benefits and tax system improve income inequality; housing costs removes this improvement
The proportions of households and individuals living in relative low income (RLI) are similar to those recorded in 2014/2015
The mean household income after housing costs of those in the lowest quintile (lowest 20%) increased by 1% in real-terms over the last five years, and 14% in nominal terms. This compares with a 9% increase in real-terms for all households, and a 24% nominal increase.

Read the full report