Equivalised (household) disposable income

The total disposable income of a household (i.e. the sum of the income of all members) divided by the number of people living in the household, weighted to allow for the economies associated with collective consumption. The weights used in the analysis here, and in most studies, conform to the modified OECD scale, which attributes weight of 1.0 to the first adult, 0.5 to everyone else aged 14 and over, and 0.3 to each child aged under 14. Each person in the household is, therefore, assigned the same ‘equivalised disposable income’, on the implicit assumption that the income of the household is shared equally between the members.