So, instead, it’s useful to think in terms of disposable income (or income after taxes and transfers), which gives a much clearer sense of how much money people actually have available to them to spend on rent, food, clothes and so on. It also includes direct benefits, or transfers, received from the state, such as child benefits. Some measures of disposable income also include non-cash benefits from the state, such as education or healthcare - an important benefit for many families. Without taxes and transfers, inequality would be even higher than it currently is (see Section 3.5).