The income disparity between the wealthiest and poorest neighborhoods in the country is widening, with the top earners having nearly £87,000 more in disposable income annually compared to those at the bottom end.
According to recent data from the Office for National Statistics, households in the Leamouth neighborhood of Tower Hamlets had an average post-tax disposable income of £107,600 in the fiscal year ending 2023. This makes Leamouth the highest-earning neighborhood in the UK, characterized by upscale riverside towerblocks situated between Canning Town and Canary Wharf.
In contrast, Sparkhill North in Birmingham recorded the lowest average income nationally, with households in that area having an average disposable income of just under £20,800 per year – a substantial £86,800 less than the Leamouth neighborhood.
The income gap between the richest and poorest neighborhoods has significantly widened over the past three years. For instance, the gap in disposable income between the two extremes was £50,300 in the financial year ending 2020, but it has since surged by 73%.
Notably, significant income disparities also exist within council areas. In Tower Hamlets, households in Shadwell North had the lowest average disposable income in the fiscal year ending 2023 at £33,800 annually, creating a £73,800 contrast with Leamouth, which represents the largest income gap within the same local authority nationwide.
In London, the disparity is evident as well, with Poplar Central, an adjacent neighborhood to Leamouth, having the second lowest average disposable income in Tower Hamlets at £35,000 annually – a £73,000 difference from its affluent neighbor.
In Southwark, there exists a £63,300 income gap between the highest-earning area, Butler’s Wharf and Queen’s Walk, with an average household disposable income of £100,900 per year, and South Bermondsey East, where the average disposable income stands at £37,600 annually.
Across the country, Oxford boasts one of the largest income gaps, with the Oxford Central neighborhood having an average disposable income of over £87,300 annually, contrasting starkly with Blackbird Leys at over £34,100 per year.
Salford follows closely, with a discrepancy of £44,400 between Salford Quays, where households have a disposable income of £67,800 annually, and Pendleton, where the average income is £23,400 per year.
Similarly, Birmingham showcases an income gap of £42,600, with the Central neighborhood boasting an average disposable income of £63,400 annually compared to Sparkhill North at £20,800 per year.
These income disparities have been highlighted by the latest figures from the Office for National Statistics, which analyze the combined disposable income of households post-tax and other deductions. The data is calculated for small areas, known as Middle layer Super Output Areas, each comprising between 2,000 and 6,000 households.
In Birmingham, the six lowest-earning areas in the country are all concentrated, with Sparkhill North holding the lowest average household income at £21,548, followed by Sparkbrook South, Small Heath Park, Saltley East, Washwood Heath, and Bordesley Green North.
The analysis further reveals that approximately 45% of neighborhoods in London rank in the top 10% nationally in terms of average disposable household income, while the figures are 14% in the South East, 8% in the East of England, and none in the North East.
In Wales and Yorkshire and the Humber, less than 1% of neighborhoods are in the top 10% nationally, with 1% in the North West and 2% each in the West Midlands, East Midlands, and South West. On the other end of the spectrum, around 23% of neighborhoods in the North West and West Midlands, and 21% in the North East, fall within the bottom 10% nationally.