Scotland business

Scottish household incomes 'up by £400'

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Typical household incomes in Scotland are now more than £400 higher than they were before the economic downturn, according to a new study.

The Resolution Foundation think-tank said average incomes in 2014 were 1.9% higher than in 2007-08.

Pensioner household incomes last year were on average 9.4% above their pre-downturn level but income in working-age households was 4.6% lower.

Resolution is a think-tank which focuses on living standards.

Its report indicated that the average household income in 2014 across Scotland was £23,000, a rise of £424 from 2007-08.

In the UK as a whole, incomes were £105 a year lower, with people living in the south east of England typically £921 worse off.

In contrast, the average income in the north east of England increased by £794 over the period.

'Generational differences'

In Scotland, typical hourly wages fell by 6.4% between 2009 and 2014, but this drop was not as great as that seen across the UK, with wages down by an average of 9.3%.

Laura Gardiner, senior policy analyst at Resolution, said: "Households in Scotland have experienced a very different kind of downturn to the rest of the UK, with a short fall in living standards in 2011 and flat or gently increasing household incomes since.

"By last year incomes were over £400 higher than pre-downturn levels and they are set to increase further in 2015.

"But considerable generational differences lie behind this positive overall picture, with pensioner households likely to have fared far better than those of working age.

"This makes it hard to talk about living standards in a way that resonates with people's experiences across Scotland."

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