The disparity in income between the wealthiest and poorest neighborhoods in the country is widening, with affluent areas having around £87,000 more in disposable income per year compared to lower-income areas.
In the Tower Hamlets neighborhood of Leamouth, 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. This area, known for its upscale riverside tower blocks between Canning Town and Canary Wharf, topped the list based on new data from the Office for National Statistics.
Conversely, Sparkhill North in Birmingham recorded the lowest average income nationwide, with households there having an annual disposable income of just under £20,800. This is a significant difference of £86,800 compared to Leamouth.
The income gap between the richest and poorest neighborhoods has surged by 73% in the past three years, as revealed by the latest data. Notably, Shadwell North in Tower Hamlets had the lowest average disposable income in the borough, standing at £33,800 per year post-tax, highlighting a £73,800 gap compared to Leamouth.
The contrast in income levels is stark within the same local authority, exemplified by Poplar Central in Tower Hamlets. This neighborhood neighbors Leamouth and boasts the second-lowest average disposable income in the area at £35,000 per household, showcasing a £73,000 difference with its affluent counterpart.
In Southwark, there exists a £63,300 gap between the wealthiest area, Butler’s Wharf and Queen’s Walk, with an average household disposable income of £100,900 annually, and South Bermondsey East, where the average disposable income was £37,600 per year.
Oxford follows closely with a significant income gap of over £53,200, with the Oxford Central neighborhood reporting an average disposable income exceeding £87,300 annually, while Blackbird Leys recorded just over £34,100 per year.
Salford witnessed a £44,400 gap, with Salford Quays households having a disposable income of £67,800 per year compared to Pendleton’s £23,400. Birmingham also experienced a notable gap of £42,600, with the Central neighborhood boasting an average disposable income of £63,400 annually in contrast to Sparkhill North’s £20,800.
These income disparities have been highlighted by fresh data from the Office for National Statistics, which analyzes the combined disposable income of households after tax payments. Averages are computed for small areas known as Middle Layer Super Output Areas, comprising between 2,000 and 6,000 households.
In Birmingham, the six lowest-earning areas in the country are all clustered, with Sparkhill North leading the list followed by Sparkbrook South, Small Heath Park, Saltley East, Washwood Heath, and Bordesley Green North, all reporting relatively low average household incomes.
The distribution of income across neighborhoods varies significantly, with nearly half of London neighborhoods ranking in the top 10% nationally for average disposable household income. In contrast, regions like the North East had no neighborhoods in the top 10%, while Wales, Yorkshire, and the Humber had less than 1% of neighborhoods in the top bracket.
Moreover, a substantial percentage of neighborhoods in the North West, West Midlands, and North East fell within the bottom 10% nationally, underscoring the diverse economic landscape across different regions.
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