Several cost of living support schemes that were available in the financial year ending (FYE) 2023 were discontinued in FYE 2024, according to the Office for National Statistics (ONS). These were the Energy Support Scheme, Council Tax rebate schemes (Great Britain) and the Alternative Fuel Payment1.
Three Cost of Living Payments continued: the Low-income and tax credits Cost of Living Payment, the Disability Cost of Living Payment, and the Pensioners Cost of Living Payment1. The ONS said these continued schemes remained stable between FYE 2023 and FYE 2024 and did not contribute to the year-on-year increase in cash benefits1.
The ONS published the figures in its Effects of taxes and benefits on UK household income bulletin on 25 September 20251.
"Some schemes, including the Energy Support Scheme, Council Tax rebate schemes (Great Britain) and the Alternative Fuel Payment that were available in FYE 2023 were discontinued in FYE 2024"
Median equivalised household income in the UK before taxes and benefits was £38,900 in FYE 2024, rising to £41,900 after taxes and benefits1. The richest fifth of people had a mean equivalised household income before taxes and benefits of £116,600, 12.2 times larger than the poorest fifth at £9,600. After cash benefits and direct taxes this reduced to £85,600 for the richest fifth, 5.6 times larger than the poorest fifth at £15,200. After all taxes and benefits, average equivalised final incomes were £85,100 for the richest fifth and £25,700 for the poorest fifth, a ratio of 3.31.
Original income inequality before taxes and benefits was 47.6% on the Gini coefficient, reduced by 20.8 percentage points to 26.8% for final income inequality after taxes and benefits1.
Unequivalised cash benefits increased in real terms by 8.2% for all households compared with FYE 2023, reflecting the 10.1% uprating of inflation-linked cash benefits1. The ONS said this was the largest redistributive effect of cash benefits since FYE 20181.
The mean average equivalised original income for UK households increased nominally by £1,200 (2.6%) in FYE 2024, a real-terms decrease of £1,400 (2.8%) after adjusting for inflation1. Both the poorest and richest fifth saw real-terms decreases in equivalised original income, of 7.7% and 3.4% respectively1.
The proportion of people living in households receiving more in benefits, both cash and in kind, than they paid in taxes, both direct and indirect, was 53.3%1.
Why it matters for households
The withdrawal of the Energy Support Scheme, the Council Tax rebate schemes in Great Britain and the Alternative Fuel Payment means households that received those payments in FYE 2023 did not receive them in FYE 20241. The three Cost of Living Payments listed by the ONS continued through FYE 20241. Details of what was paid and when are set out in the guide to Cost of Living Payments.
The ONS figures cover the year to April 2024 and describe incomes after the event rather than current entitlements. Cash benefits rose in real terms by 8.2% across all households, reflecting the 10.1% uprating of inflation-linked benefits1. The bulletin does not report the value of the discontinued schemes or how much individual households lost when they ended.
The ONS said the poorest fifth of households saw a nominal decrease in wages and salaries of 5.1% and a real-terms decrease of 10.1%, while the richest fifth saw a nominal increase of 1.8% and a real-terms decrease of 3.6%1. Median equivalised household final income, after all taxes and benefits and adjusted for inflation, was stable between FYE 2023 and FYE 20241.
What happens next
The ONS has not announced a release date for the next bulletin, listed as to be announced1. No further changes to the discontinued schemes are set out in the bulletin.
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