The disparity in income between the wealthiest and poorest neighborhoods in the country is widening, with affluent areas having nearly £87,000 more in disposable income annually compared to lower-income areas.
In the financial year ending 2023, households in the Leamouth neighborhood of Tower Hamlets had an average post-tax disposable income of £107,600, making it the highest-earning neighborhood in the UK. Conversely, households in Sparkhill North, Birmingham, had the lowest average income nationally at just under £20,800 annually, showing a substantial £86,800 difference from Leamouth.
Recent data from the Office for National Statistics reveals a significant increase in the income gap between affluent and deprived areas, rising by 73% in three years to £50,300 annually in 2020. Disparities also exist within local council areas, with Shadwell North in Tower Hamlets having the lowest average disposable income at £33,800 yearly, highlighting a £73,800 contrast with Leamouth.
In the capital, the stark contrast in incomes is evident as Poplar Central, with an average household disposable income of £35,000, neighbors Leamouth, showing a substantial £73,000 difference. Similarly, in Southwark, there is a £63,300 income gap between the affluent Butler’s Wharf and Queen’s Walk area with an average income of £100,900 and South Bermondsey East with £37,600.
Oxford boasts one of the largest income gaps nationally, with Oxford Central having an average income exceeding £87,300 annually compared to Blackbird Leys at over £34,100. Other notable income disparities include Salford with a £44,400 gap, Birmingham with a £42,600 difference, and several low-earning neighborhoods in Birmingham with average incomes below £22,000.
The Office for National Statistics’ latest figures expose the wide variations in household incomes, derived by analyzing combined disposable incomes after tax payments in small areas. Notably, London dominates the top income bracket, with nearly half of its neighborhoods ranking in the top 10% nationally, while regions like Wales and Yorkshire have minimal representation in the top tier.
In contrast, the North East lacks neighborhoods in the top 10%, while regions like the North West and West Midlands have a significant number of neighborhoods in the bottom 10% nationally. The income disparities underscore the varying economic landscapes across different regions of the UK.
