Adjusted total income of households

Part A - Short definition:

Household total income divided by the square root of household size.

Part B - Detailed definition:

Adjusted total income of households refers to the household total income that has been adjusted by a factor that accounts for household size. The adjustment factor takes into account the lower relative needs of additional household members, as compared to a person living alone, and is determined by using a scale that assigns a lower value to additional household members. The adjusted total income of households is thus computed by dividing the household total income by the factor. Multiple equivalence scales are used in published data. The one chosen for use with the NHS income data is simply the square root of household size.

Reported in:

2011

Reported for:

Private households and population in private households

Question number(s):

Derived variable

Responses:

Not applicable

Remarks:

For details on the components of total income, see 'Remarks' under Total income.

See also Household, private and Household size.

This variable is used to help compute the Low-income measure before-tax (LIM-BT).