The disparity in income between the wealthiest and poorest neighborhoods in the country is widening, with the top earners having nearly £87,000 more in disposable income annually compared to those at the bottom.
In Tower Hamlets, the Leamouth neighborhood stands out as the highest-earning area, boasting an average post-tax disposable income of £107,600 in the fiscal year ending 2023. This area, featuring upscale riverside tower blocks between Canning Town and Canary Wharf, leads the nation in income.
Conversely, Sparkhill North in Birmingham emerges as the lowest-earning neighborhood in the country, with households there averaging just under £20,800 in disposable income annually, representing a substantial £86,800 income gap compared to Leamouth.
Recent data from the Office for National Statistics reveals that the income disparity between the richest and poorest neighborhoods has surged by 73% over the past three years, reaching £50,300 annually by the end of the 2020 fiscal year.
Moreover, significant income gaps exist within council areas. For instance, in Tower Hamlets, Shadwell North reported the lowest average disposable income in the fiscal year ending 2023, with households having a yearly disposable income of £33,800. This marks a £73,800 difference from the affluent Leamouth neighborhood, representing the largest income gap within the same local authority in the country.
In London’s Southwark district, there is a £63,300 income gap between the wealthier area of Butler’s Wharf and Queen’s Walk, where households enjoy an average disposable income of £100,900 annually, and South Bermondsey East, where the average disposable income is £37,600 annually.
Across the nation, Oxford exhibits one of the most significant income disparities, with a gap exceeding £53,200. The Oxford Central neighborhood boasts an average disposable income of over £87,300 annually, contrasting sharply with Blackbird Leys, where the average income stands at over £34,100 annually.
The income divide is also evident in Salford, where households in Salford Quays have a disposable income of £67,800 yearly, while those in Pendleton have only £23,400. Similarly, Birmingham showcases a gap of £42,600, with the Central neighborhood’s average disposable income at £63,400 annually compared to Sparkhill North’s £20,800.
The latest figures from the Office for National Statistics underscore the substantial disparities in household income across various regions. Every two years, the ONS analyzes combined household disposable income after tax deductions, providing averages for small areas known as Middle Layer Super Output Areas, each comprising between 2,000 and 6,000 households.
In Birmingham, the six lowest-earning areas are all concentrated within the city. Following Sparkhill North, Sparkbrook South reports the second-lowest average household income at £21,548, trailed by Small Heath Park, Saltley East, Washwood Heath, and Bordesley Green North.
Notably, nearly half of London’s neighborhoods rank in the top 10% nationally for average disposable household income, while the South East, East of England, and other regions exhibit varying proportions of neighborhoods in the top income bracket.
Conversely, certain regions such as Wales, Yorkshire and the Humber, and the North East have a minimal presence in the top 10% income bracket nationally, with higher concentrations of neighborhoods falling in the bottom 10% income bracket.
By using our interactive map, you can compare income levels in your local area. Opt for Daily Mirror as a ‘Preferred Source’ on Google News for easy access to valuable news content.
