The disparity in income between the wealthiest and poorest neighborhoods in the country is widening, with a difference of nearly £87,000 in annual disposable income between the top and bottom earners. 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. Meanwhile, Sparkhill North in Birmingham recorded the lowest average income nationally, with households there having just under £20,800 in disposable income annually, a substantial £86,800 less than Leamouth.
The latest data from the Office for National Statistics reveals a significant 73% increase in the income gap between affluent and disadvantaged neighborhoods over three years, with the divide now standing at £50,300 per year. Notably, Shadwell North in Tower Hamlets exhibited the largest income contrast within a single local authority, with households there having an average disposable income of £33,800 annually, creating a gap of £73,800 compared to Leamouth.
Other regions also show pronounced income disparities, such as Southwark, where Butler’s Wharf and Queen’s Walk recorded an average household disposable income of £100,900 per year, in stark contrast to South Bermondsey East’s £37,600 annual income. Oxford, Salford, and Birmingham also displayed substantial income gaps, emphasizing the widening wealth divide across various localities.
The Office for National Statistics’ latest figures shed light on the substantial variations in household earnings, highlighting the disparity in disposable incomes after tax, national insurance, and council tax payments. The data, which is analyzed for Middle layer Super Output Areas consisting of 2,000 to 6,000 households, underscores the significant financial contrasts within communities.
In Birmingham, the six lowest-earning areas are all clustered, with Sparkhill North leading as the neighborhood with the lowest average household income at £21,548. These findings underscore the prevalent income inequality within the city. Additionally, the data points to regional discrepancies, with London boasting a higher percentage of affluent neighborhoods compared to other areas in the country.
The income disparities outlined in the report reflect the complex economic landscape across different regions, raising awareness of the challenges faced by households in lower-income neighborhoods. By exploring the interactive map, individuals can gain insights into income variations within their local areas, contributing to a better understanding of the financial dynamics at play.