The disparity in income levels between affluent and impoverished neighborhoods in the country is widening, with the top earners having nearly £87,000 more in disposable income annually than those at the bottom.
According to recent data from the Office for National Statistics, households in the Leamouth area of Tower Hamlets boasted the highest average disposable income in the country, totaling £107,600 post-tax for the fiscal year ending in 2023. In stark contrast, Sparkhill North in Birmingham reported the lowest average income nationwide, with households there having just under £20,800 in disposable income per year, a significant £86,800 less than Leamouth.
The income gap between the richest and poorest neighborhoods has expanded by 73% over the past three years, surging from £50,300 in the fiscal year ending 2020 to the current £87,000 differential.
Furthermore, substantial income disparities exist within local council areas. For instance, Shadwell North in Tower Hamlets recorded the lowest average disposable income at £33,800 annually, highlighting a £73,800 gap compared to Leamouth, marking the most significant income contrast within the same local authority in the country.
In other areas like Southwark, the contrast is evident, with a £63,300 gap between the affluent Butler’s Wharf and Queen’s Walk area, where households enjoyed an average disposable income of £100,900 annually, and South Bermondsey East, where the average income stood at £37,600 per year.
The disparity in income levels is not unique to specific regions. Oxford, Salford, and Birmingham also experienced significant income gaps, with varying average disposable incomes across different neighborhoods.
These findings, based on data from the Office for National Statistics, shed light on the stark contrasts in household income levels across the country. The statistics are derived from the combined disposable income of households after accounting for various taxes, providing insights into economic disparities at a granular level.