Household incomes hit by rising inflation

Household incomes have fallen for the first time since 1981, according to the Office for National Statistics (ONS).

Real household disposable incomes contracted by 0.8% in 2010 against 2009. As well as being the first annual fall for 30 years, it was the biggest drop in any 12-month period since 1977.

Per head real income dropped from £14,181 to £13,980 last year, the ONS said.

The fall in incomes is as a result of inflation outstripping wages’ growth over the past year, it said.

www.statistics.gov.uk/pdfdir/qna0311.pdf