Income

Stages of Redistribution, which Townsend identifies as various ways income may be defined. He notes "Each measure has strengths and weaknesses, and no single measure is necessarily correct or incorrect: the choice of a given measure will vary depending on the purpose of the figures".

Original income = that received directly (primarily from earned employment, self-employment, savings and investments), but not benefit income.
Gross income = the above plus direct cash benefits (contributory, such as pensions, and non-contributory, e.g. child benefit, housing benefit and income support) and tax credits.
Disposable income = the above less direct taxes (income tax and National Insurance) and local taxes, such as council tax.
Post-tax income = the above less indirect and ‘intermediate’ taxes.
Final income = the above plus the value of ‘benefits in kind’ (e.g. state education, the NHS).