The income disparity between different neighborhoods in the country is widening, with affluent areas having a significantly higher disposable income compared to less prosperous ones. For instance, households in Leamouth, Tower Hamlets, had an average post-tax disposable income of £107,600 in the financial year ending 2023, making it the highest-earning neighborhood in the UK, mainly due to its upscale riverside properties situated between Canning Town and Canary Wharf. In contrast, Sparkhill North in Birmingham had the lowest average disposable income nationally, at just under £20,800 annually, highlighting an £86,800 income gap with Leamouth.
The latest data from the Office for National Statistics reveals that the income inequality has grown by 73% over the past three years, with the disparity between the richest and poorest neighborhoods now standing at £87,000 annually. Notably, council areas also exhibit significant income gaps, with Shadwell North in Tower Hamlets having the lowest average disposable income in the region, at £33,800 yearly, which is £73,800 less than the affluent Leamouth area.
In London’s Poplar Central, adjacent to Leamouth, households have the second lowest average disposable income in Tower Hamlets, at £35,000 per year, creating a £73,000 income gap with their wealthier neighbors. Similarly, Southwark showcases a £63,300 disparity between Butler’s Wharf and Queen’s Walk, with an average household income of £100,900, and South Bermondsey East, with a yearly disposable income of £37,600.
Other notable income gaps exist in Oxford, Salford, and Birmingham, illustrating the stark contrasts in earnings within these regions. The Office for National Statistics’ latest figures unveil these income disparities, calculated based on the combined disposable income of households after tax deductions, with averages computed for small areas termed Middle layer Super Output Areas, consisting of 2,000 to 6,000 households.
In Birmingham, the six lowest earning areas are all clustered within the city, with Sparkhill North recording the lowest average household income nationally, followed by Sparkbrook South, Small Heath Park, Saltley East, Washwood Heath, and Bordesley Green North. The distribution of average disposable household income across various regions in the UK shows that nearly half of London’s neighborhoods rank in the top 10% nationally, while other regions like the North East, Wales, and Yorkshire exhibit lower proportions of neighborhoods in the top income bracket. Conversely, the North West and West Midlands have a higher concentration of neighborhoods in the bottom 10% nationally.
