Nowcasting household income in the UK: initial methodology

In order to properly understand changes in households' economic well-being, it is important to have measures which reflect the experience of the typical household and can also provide a description of the distribution. However, the complexities of producing such measures means they are typically only available with a significant time lag. This article therefore presents an initial methodolgy for producing early/provisional estimates of median equivalised disposable income and other measures. The accuracy of nowcast estimates based on this methodology are evaluated against data from ONS's publication the Effects of Taxes and Benefits on Household Income.