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Support #1668

Net household income including housing benefit adjustment

Added by Rebecca Benson 7 months ago. Updated 4 months ago.

Status:
Resolved
Priority:
Normal
Assignee:
-
Category:
Income
Start date:
03/15/2022
% Done:

100%


Description

I am trying to get a measure of net household income.

I understand that when housing benefit is implied by differences between net and gross rent, but unreported as a source of income for any household members, it is necessary to use w_hbadjust_dv to include housing benefit income. I further understand that the variable w_fihhmngrs1_dv already adds this for gross income.

To get the equivalent net figure, the obvious solution is to add w_hbadjust_dv and w_figgmnnet1_dv. But this would not take into account any taxes related to the HB amount. Is there another recommended approach?

#1

Updated by Understanding Society User Support Team 7 months ago

  • Category set to Income
  • Status changed from New to In Progress
  • Private changed from Yes to No

Many thanks for your enquiry. The Understanding Society team is looking into it and we will get back to you as soon as we can.

We aim to respond to simple queries within 48 hours and more complex issues within 7 working days. While we will aim to keep to this response times due to the current coronavirus (COVID-19) related situation it may take us longer to respond.

Best wishes,
Understanding Society User Support Team

#2

Updated by Understanding Society User Support Team 7 months ago

  • Status changed from In Progress to Feedback
  • % Done changed from 0 to 50

If you look at the user guide section on hh income here https://www.understandingsociety.ac.uk/documentation/mainstage/user-guides/main-survey-user-guide/household-income-variables, you will find that

(1) hh income net of tax on earnings and NI contributions = fihhmnnet1_dv
(2) hh income net of tax on earnings and NI contributions & local tax liability = fihhmnnet3_dv = fihhmnnet1_dv - council tax, where council tax = ficountax_dv+ council tax benefit (but this part is not released)
(3) hh income net of tax on earnings and NI contributions & net of local tax liability but adding the housing benefit reported in the hh quex = fihhmnnet4_dv (only available in SL) = fihhmnnet3_dv + hbadjust_dv
(4) hh income net of tax on earnings and NI contributions and housing cost= fihhmnnet1_dv - w_houscost1_dv if you want to exclude rent and capital repayments
(5) hh income net of tax on earnings and NI contributions and housing cost= fihhmnnet1_dv - w_houscost2_dv if you want to exclude rent and interest payments
(6) fihhmnngrs1_dv = fihhmngrs_dv+hbadjust (as you have correctly stated)

Does this help in computing the type of net hh income you need?

Best wishes,
Understanding Society User Support Team

#3

Updated by Understanding Society User Support Team 4 months ago

  • Status changed from Feedback to Resolved
  • % Done changed from 50 to 100

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