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.

GDHI is important as it gives an indication of the standard of living and monetary well-being of people.

Factsheet: Gross Domestic Household Income (PDF; 243Kbs) (use the expandable sections below to access relevant section of this factsheet)

Key Messages:

  • In 2018, total GDHI for England was £1,209.6 billion, with a per head figure in 2018 of £21,609,
  • The North East had the smallest share of England GDHI with £45,171 million representing 3.7% of total GDHI in England. This was an increase in the North East from 3.6% in 2017,
  • The North East had a GDHI per head figure of £16,995, the lowest out of the nine English regions, representing a rise of 3.9% from 2017,
  • Total GDHI in County Durham in 2018 was £8,717 million, representing 19.3% of the total North East GDHI and the highest proportion out of the twelve North East authorities,
  • In 2018, County Durham had a GDHI of £16,542 per head, a rise of 4.2% from 2017.

Links to Data:

Why is it important?

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.  Income distribution measures include taxes, social contributions and benefits.  GDHI is calculated as the money earned or received by the household and non-profit institutions serving households (NPISH) economic sector (resources, or incomings), less the money paid out by households and institutions associated to income (uses, or outgoings).  It is a measure of short-term average earnings based on the Monthly Wages and Salaries Survey.

Resources, or incomings, of the household and NPISH sector include:

  • operating surplus, for example, imputed rental mixed,
  • income, for example, self-employment income,
  • compensation of employees, for example, wages and salaries,
  • property income received, for example, interest earned on savings,
  • social contributions and benefits received, for example, Jobseekers Allowance, State Pension,
  • other current transfers received, for example, settlements of accident insurance, monetary gifts.

GDHI is important as it gives an indication of the standard of living and monetary well-being of people.  Total GDHI estimates in millions of pounds (£ million) are divided by the resident population of a region to give GDHI per head in pounds (£).  Per head data take account of the entire resident population of regions, sub regions and local areas.  The working population and the economically inactive are included and, therefore, GDHI per head are estimates of values for each person, not each household.  The data can be used to compare regions of different sizes.

National and Regional GDHI and GDHI per Capita

In 2018, total GDHI for England was £1,209.6 billion.  This represented 86.3% of the UK figure with 7.6% in Scotland, 3.8% in Wales and Northern Ireland having the lowest share of total GDHI in 2018 at 2.3%.

Out of the nine English regions, the North East had the smallest share of England GDHI with £45,171 million representing 3.6% of total English GDHI and a rise of 2.8% from 2017.  In comparison London had the highest share of English GDHI at £261,562 million, representing 20.5% of GDHI in England.

The English GDHI per head figure in 2018 was £21,609, the highest of the four UK countries. The North East had a GDHI per head figure of £16,995, the lowest out of the nine English regions, representing a rise of 2.5% from 2017.  The charts below shows regional GDHI and GDHI per head and percentage change from 2017.

Durham data – the local picture and how we compare – Total GDHI

Total GDHI in County Durham in 2018 was £8,717 million, representing 19.3% of the total North East GDHI and the highest proportion out of the twelve North East authorities.  This is a rise from 2017 of 4.8%.  North Tyneside had the highest increase in GDHI of 5.7% with Middlesbrough experiencing the smallest increase of 1.4% from 2017.

The English upper tier local authority area with the highest GDHI in 2018 was Surrey (£36,275 million), an increase of 5% from 2017.  The local authority area with the lowest GDHI was the isles of Silly (£59 million), but this due to it being the smallest unitary authority in England by population.

This was followed by Rutland (£878 million) and Hartlepool (£1,510 million), substantially more than Rutland.  The charts and table below illustrate these differences for all unitary authorities in England and the North East.

Durham data – the local picture and how we compare – GDHI per Head of Population (Capita)

In 2018, County Durham had a GDHI per Capita of £16,542 (2.7% below the North East total GDHI per Capita value of £16,995), however, this is a rise of 4.2% from 2017.  Regionally, Northumberland has the highest GDHI at £20,437 per head, (20.3% higher than the North East total GDHI per head), with Middlesbrough having the lowest at £15,469 per Captia.  County Durham is ranked fifth out of the twelve local authority areas in the North East.  County Durham has seen an increase in GDHI per head of 41.6% since 2004.

In the four-year period 1998 to 2001, the GDHI per Head for County Durham was above the North East average.  However, during the 20-year period (1997-2016) County Durham has only been above the regional average for this four-year window.  Since 2002 the county’s GDHI has been below the regional average and as growth has been slower on average in the county, the gap since 2002 has widened.  In 2017, GDHI per Capita in County Durham was below the North East by 2.3%.  County Durham will need to address this decline and aim to increase its GDHI per Head above the regional average.

The English upper tier local authority area with the highest GDHI per head in 2018 was The City of London (£192,165), however, this is an estimated decrease of 1.1% from 2017 and is the only upper tier authority to have a decrease from the previous year.  The local authority area with the lowest GDHI was Nottingham (£13,138).

The County Durham Partnership has agreed 5 measures of success. The target is for County Durham to have a GHDI at 103% of the regional value by 2030.  While there has been an increase in GDHI per Capita of 24.6% since 2009 in the county, this is still below the target. Therefore, further improvements will be required to meet the 103% of the regional average target (currently 97.3% of the regional average).

ONS GDHI data visualisation tool (NUTS3 areas):