Component of GDHI (17 categories)

Gross disposable household income = the balance of primary income + the balance of secondary income

Balance of primary income: The allocation of primary income account for the household sector reflects incomes (primary resources) and outgoings (primary uses) arising as part of the production process or through the ownership of assets required for production. Balance of primary income = primary resources - primary uses

Primary resources comprise four sub-components: * Gross operating surplus in the household sector account relates to the household sector’s rental income from buildings, including the imputed rental of owner-occupier dwellings. * Mixed income mainly comprises income from self employment * Compensation of employees comprises the remuneration payable by an employer to an employee, in return for the services of labour. It includes wages and salaries in cash or income in kind (e.g. free board and lodging) and the social contributions (actual or imputed) paid by employers for the benefit of their employees (e.g. social security). Employers’ social contributions are regarded as a part of employees’ remuneration, although not paid to the employee directly. They may be actual or imputed and secure entitlements for the employee to social benefits * Property income received relates to income from the ownership of financial assets and tangible non produced assets (land and sub-soil assets)

Primary uses comprises just one component: * Property income paid comprises interest (paid on consumer or housing loans) and rent on land.

Balance of secondary income: The secondary distribution of income account reflects money transferred to, or from, households unrelated to a productive activity. This includes government redistribution of primary income and traces the various transfers that occur subsequent to the allocation of primary income. Balance of secondary income = secondary resources - secondary uses

Secondary resources comprise two sub-components: * Imputed social contributions are those paid directly by employers to their current employees and/or former employees, as well as other eligible persons. Payments are made directly to the entitled individuals without involving a social security fund, insurance enterprise, autonomous pension fund or the like. Social benefits other than social transfers in kind are divided into four sub-components: social security benefits in cash, privately funded benefits, unfunded employee social benefits and social assistance in cash. * Other current transfers received. Other current transfers are unrequited payments, with nothing received in exchange. In the household sector this comprises non-life insurance claims and miscellaneous current transfers.

Secondary uses comprise three sub-components: * Current taxes on income and wealth are compulsory, unrequited payments made by the household sector to the government sector and are sub-divided into taxes on income and other current taxes * Social contributions/social benefits paid are made by individuals to social insurance schemes to make provision for social benefits (for example, State Pension). * Other current transfers on the uses side of the allocation of secondary income account are sub-divided into non-life insurance premiums and miscellaneous current transfers.

Measure (5 categories)

Gross Disposable Household Income (or GDHI) estimates are produced at current prices, which means the effect of inflation has not been removed. The unit is million pounds sterling.

It should be noted that regional GDHI estimates relate to totals for all individuals within the household sector for a region rather than to an average household or family unit. The household sector comprises all individuals in an economy, including people living in traditional households as well as those living in institutions, such as retirement homes and prisons. The sector also includes sole trader enterprises (the self-employed) and non-profit institutions serving households (NPISH), for example charities and most universities.

GDHI per head is calculated using residence based ONS mid-year total population estimates for the selected area. The unit is pounds sterling.

GDHI per head index is the ratio of the GDHI per head figure for an area to the GDHI per head figure for the UK.

Growth in GDHI is the percentage increase in GDHI over the previous year.

Growth in GDHI per head is the percentage increase in GDHI per head over the previous year.