The disparity between the wealthiest and poorest neighborhoods in the country is widening, with households at the top end having nearly £87,000 more annual disposable income compared to those at the bottom.
In the Leamouth neighborhood of Tower Hamlets, households 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 according to recent data from the Office for National Statistics. This area, located between Canning Town and Canary Wharf, boasts several upscale riverside tower blocks.
Conversely, Sparkhill North in Birmingham recorded the lowest average income in the country, with households there having an average disposable income of just under £20,800 annually. This figure falls significantly short of the income in Leamouth by £86,800 per year.
The income gap between the richest and poorest neighborhoods has widened by 73% in the past three years, as indicated by data from the financial year ending 2020, where the gap was £50,300 annually.
Notably, significant income disparities also exist within council areas. In Tower Hamlets, households in Shadwell North had the lowest average disposable income at £33,800 annually, highlighting a substantial £73,800 difference compared to Leamouth, making it the largest gap between affluent and deprived areas within the same local authority.
In London’s Poplar Central, a stark contrast is evident with households in the area having an average disposable income of £35,000 annually, which is significantly lower than neighboring Leamouth, showcasing a £73,000 income gap.
Across different regions, disparities in average household disposable income persist. In Southwark, a £63,300 gap exists between the affluent Butler’s Wharf and Queen’s Walk area, with an average income of £100,900 per year, and South Bermondsey East, where the average disposable income is £37,600 annually.
Cities like Oxford, Salford, and Birmingham also exhibit notable income gaps. Oxford Central, for instance, has an average disposable income of over £87,300 annually, significantly higher than Blackbird Leys at over £34,100 per year. Similarly, in Salford, households in Salford Quays have a disposable income of £67,800 a year compared to Pendleton’s £23,400 annually.
The income disparities highlighted by the recent Office for National Statistics figures reveal the significant variation in household incomes across the country. These statistics, based on combined disposable incomes of households after tax deductions, offer insights into the economic disparities existing within small geographic areas.
In Birmingham, all six lowest-earning areas in the country are concentrated, with Sparkhill North recording the lowest average household income at £21,548, followed by Sparkbrook South, Small Heath Park, Saltley East, Washwood Heath, and Bordesley Green North.
The data allows individuals to compare the income levels in their local areas using an interactive map, providing a comprehensive overview of income disparities at a neighborhood level.
London dominates in terms of neighborhoods in the top 10% nationally for average disposable household income, with 45% of its neighborhoods falling within this bracket. In contrast, regions like the North East, Wales, and Yorkshire and the Humber have a lower representation in the top 10% nationally.
In the North West and West Midlands, a considerable proportion of neighborhoods rank among the bottom 10% nationally, underscoring the disparities in household incomes across different regions.