The disparity in income levels between different neighborhoods in the country is increasing, with households in affluent areas having significantly more disposable income compared to those in less privileged areas. According to recent data from the Office for National Statistics, households in the Leamouth neighborhood of Tower Hamlets had the highest average disposable income in the country, standing at £107,600 per year after tax in 2023.
On the other end of the spectrum, Sparkhill North in Birmingham recorded the lowest average income nationally, with households there having an average disposable income of just under £20,800 annually. This marks a substantial difference of £86,800 when compared to Leamouth.
The income gap between the richest and poorest neighborhoods has widened significantly in recent years, growing by 73% from £50,300 in 2020 to £87,000 in 2023. These discrepancies are not only evident between neighborhoods but also within council areas. For instance, in Tower Hamlets, Shadwell North had the lowest average disposable income at £33,800 per year, highlighting a substantial gap of £73,800 when compared to Leamouth, making it the largest disparity within the same local authority.
Similar stark contrasts exist in other areas such as Poplar Central in Tower Hamlets, where households have an average disposable income of £35,000, presenting a considerable gap of £73,000 compared to neighboring Leamouth. In Southwark, there is a £63,300 difference in average disposable income between the affluent Butler’s Wharf and Queen’s Walk area and the less affluent South Bermondsey East.
Other regions with notable income disparities include Oxford, Salford, and Birmingham, where neighborhoods like Oxford Central, Salford Quays, and Central Birmingham have significantly higher average disposable incomes compared to areas like Blackbird Leys, Pendleton, and Sparkhill North, respectively.
The latest figures from the Office for National Statistics shed light on the vast variations in household incomes across the country, revealing substantial gaps between affluent and less privileged areas. These findings are based on calculations for small areas known as Middle Layer Super Output Areas, consisting of 2,000 to 6,000 households.
The disparities are further highlighted by the fact that the six lowest-earning areas in the country are all located in Birmingham, with Sparkhill North having the lowest average household income. Such income discrepancies are also evident at a national level, with different regions showing varying percentages of neighborhoods in the top and bottom income brackets.
While almost half of London neighborhoods rank in the top 10% nationally for average disposable income, other regions like the North East, Wales, and Yorkshire have a smaller representation in the higher income brackets. Conversely, areas like the North West and West Midlands have a higher proportion of neighborhoods in the bottom 10% nationally, emphasizing the economic diversity across different regions.
For personalized insights into income levels in your local area, you can explore our interactive map using your postcode to compare figures and gain a better understanding of the income landscape in the UK.