British households now have more disposable income than ever before.
The peak existing before the financial crisis has been finally exceeded, according to the Office for National Statistics.
The agency said that disposable incomes are at a record high even after accounting for the higher costs of goods and changes in family composition.
The median household earned £26,400 after direct taxes and benefits in the financial year to March. This was an increase of £700 on the previous year and £400 over the earlier high of £26,000 in 2007-08.
Retired households benefitted from the largest increase. Disposable income of £21,500 was £1,700 greater than that in 2007-08.
Working households, however, still lagged behind the 2007-08 level by an average of £400.
Wages have been shown to have increased. The average worker earned £501 per week in the three months to June – a rise of 2.4% on the year.
Construction workers had the largest wage increase, up an average of 8.4% in the past year. People working in finance and business services received a 2.5% raise, while the average public sector worker's pay went up by 1.7% in the past year.
