The disparity between the wealthiest and most impoverished neighborhoods in the country is widening, with those at the top having approximately £87,000 more in annual disposable income compared to those at the bottom.
In the Leamouth neighborhood of Tower Hamlets, households had an average disposable income of £107,600 after taxes in the financial year ending 2023, making it the highest-earning neighborhood in the country. This area, located between Canning Town and Canary Wharf, boasts a number of upscale riverside tower blocks.
Conversely, Sparkhill North in Birmingham recorded the lowest average income nationwide, with households having just under £20,800 in disposable income annually. This figure represents a significant difference of £86,800 when compared to Leamouth.
Recent data from the Office for National Statistics reveals that the income gap between the richest and poorest neighborhoods has surged by 73% in just three years, reaching £50,300 per year for the financial year ending 2020.
Noteworthy gaps in disposable income also exist within council areas. For instance, households in Shadwell North in Tower Hamlets had the lowest average disposable income in the region, standing at £33,800 annually after tax. This marks a substantial £73,800 difference compared to the affluent Leamouth area, representing the largest income gap within the same local authority in the country.
In a stark illustration of economic disparity within London, Poplar Central, bordering Leamouth, holds Tower Hamlets’ second-lowest average disposable income at £35,000 per household. This figure is significantly lower than the neighboring Leamouth, showcasing a gap of £73,000.
Across various areas, income disparities are evident. In Southwark, for instance, there is a £63,300 gap between the affluent Butler’s Wharf and Queen’s Walk area, where the average household disposable income reaches £100,900 yearly, and South Bermondsey East, where the average disposable income is £37,600 annually.
Oxford ranks next in terms of income inequality, with a gap exceeding £53,200. The Oxford Central neighborhood boasts an average disposable income of over £87,300 annually, while Blackbird Leys reports just over £34,100 per year.
Salford follows closely with a £44,400 gap, as households in Salford Quays enjoy a disposable income of £67,800 yearly compared to Pendleton’s £23,400.
In Birmingham, there is a notable income discrepancy of £42,600, with the Central neighborhood reporting an average disposable income of £63,400 yearly, significantly higher than Sparkhill North’s £20,800.
The significant disparities in household earnings have been highlighted by the latest figures from the Office for National Statistics, showcasing the combined disposable income of households after accounting for various taxes. These averages are calculated for small areas known as Middle Layer Super Output Areas, typically comprising between 2,000 and 6,000 households.
Birmingham hosts the six lowest-earning areas in the country, with Sparkhill North leading the list, followed by Sparkbrook South, Small Heath Park, Saltley East, Washwood Heath, and Bordesley Green North.
The data allows individuals to compare their local area’s income levels using an interactive map, providing insights into the economic landscape of various regions.
The analysis indicates that nearly half of London’s neighborhoods rank in the top 10% nationally in terms of average disposable household income, whereas the South East and East of England have 14% and 8% of neighborhoods, respectively, in the top 10%. In contrast, the North East has no neighborhoods in the top 10%.
Wales and Yorkshire and the Humber show less than 1% of their neighborhoods in the top 10% nationally, while the North West, West Midlands, East Midlands, and South West each have 1% to 2% in the top bracket.
Moreover, approximately 23% of neighborhoods in the North West and West Midlands, along with 21% in the North East, fall within the bottom 10% nationally, indicating significant income disparities across different regions.