This table provides metadata for the actual indicator available from UK statistics closest to the corresponding global SDG indicator. Please note that even when the global SDG indicator is fully available from UK statistics, this table should be consulted for information on national methodology and other UK-specific metadata information.
Redistributive impact of fiscal policy
|Unit of measurement||
'Gini coefficient' - a gini coefficient is a statistical measure representing income or wealth inequality, where a higher number means higher levels of inequality. Here, Gini coefficient represents income inequality.
'Retired' refers to anyone living in a retired household.
A retired household is one where more than 50% of its income is sourced from people who (i) define themselves as retired and are aged over 50, OR (ii) define themselves as “Sick/Injured”, not seeking work and aged at or above the State Pension Age (SPA).
Gini coefficient for original income minus Gini coefficient for final income.
Original income includes all sources of income from employment, private pensions, investments and other non-government sources. The receipt of cash benefits is then added to original income to estimate gross income, and then direct taxes are subtracted to estimate disposable income. Indirect taxes (for example, VAT, alcohol duties and so on) are further subtracted to form post-tax income, and finally benefits-in-kind (for example, state education, National Health Service) are added to estimate final income.
The five stages in the redistribution of income are -
stage one - household members begin with income from employment, private pensions, investments and other non-government sources; this is referred to as "original income"
stage two - households then receive income from cash benefits; the sum of cash benefits and original income is referred to as "gross income"
stage three - households then pay direct taxes; direct taxes, when subtracted from gross income, are referred to as "disposable income"
stage four - indirect taxes are then paid via expenditure; disposable income minus indirect taxes is referred to as "post-tax income"
stage five - households finally receive a benefit from services (benefits-in-kind); benefits-in-kind plus post-tax income is referred to as "final income"
Data follows the UN specification for this indicator. This indicator has been identified in collaboration with topic experts.
|Data last updated||03 August 2023|
|Metadata last updated||03 August 2023|