Real household income per capita fell in many European countries in the first quarter of 2025, compared with the previous quarter. Among Europe’s largest economies, the United Kingdom recorded the sharpest drop, down 1.3%. In contrast, real GDP per capita rose in most European countries.
Household disposable income is the total amount of money households have available for spending after deducting taxes and social security contributions. People use this income to cover their needs or save. It includes wages and salaries, income from self-employment and unincorporated businesses, pensions, social benefits, and earnings from financial investments. According to the OECD, it is an objective measure of material quality of life.
