Bill as a proportion of disposable income
Bill as a proportion of disposable income - This compares our average household bill with average household disposable income. To calculate the latter, we use the equivalised disposable income statistics, published by ONS in their report titled The effects of taxes and benefits on household income.
This data is published two years in arrears and we uprate it by the most recent forecasts of household disposable income from the Office for Budget Responsibility (OBR), taking into account the overall change in households using the ONS Families and Households publication. This gives us the final denominator to calculate the bill as a proportion of disposable income.
We have targeted a reducing trend over the five years.
Based on the latest ONS and OBR data our 2019-20 bill was 1.4% of disposable income. This compares with the position in 2014-15 when the bill was 1.6%, and so this meets the reducing trend target over the five-year period.