Topic Videos
What is disposable income?
- Level:
- AS, A-Level, IB, BTEC National, BTEC Tech Award
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 15 Sept 2019
This study video looks at a key macroeconomic indicator - the level of household disposable income.
Disposable income is the amount of money that individuals and families have available for spending or saving after they have paid their direct taxes and received any state welfare benefits.
Direct taxes include income tax, national insurance and (local) council tax.
Stages in calculating disposable income:
Original income before government intervention
+ Cash benefits (e.g. state pension)
- Direct taxes and local taxes (e.g. council tax)
= Disposable income
You might also like

Working Poverty, Monopsony Power and the Informal Labour Market
30th December 2022
Interest Rates and Consumer Spending - Chain of Reasoning
Practice Exam Questions

What are Britain's Lowest Paid jobs?
8th November 2022

Recession Watch - UK Households Saving More and Borrowing Less
31st October 2022

Child Poverty - Rising Numbers of UK Children in Workless Households
27th October 2022

UK Economy - Will Household Saving Collapse?
1st October 2022

Inter-connections that help explain the crisis
2nd September 2022