The disparity in income levels between the wealthiest and poorest neighborhoods in the country is widening, with a significant £87,000 difference in annual disposable income observed between them. According to the latest data from the Office for National Statistics, households in the affluent Leamouth neighborhood of Tower Hamlets boasted an average post-tax disposable income of £107,600 in the financial year ending 2023, making it the highest-earning neighborhood in the nation. In contrast, households in Sparkhill North in Birmingham had the lowest average income nationally, totaling just under £20,800 annually, a substantial £86,800 less than in Leamouth.
The income gap between affluent and impoverished neighborhoods has notably increased by 73% over the past three years, with the disparity now standing at £50,300 annually compared to the previous figure of £87,000. The data reveals significant discrepancies in disposable income within council areas as well. For instance, households in Shadwell North, Tower Hamlets, had the lowest average disposable income in the region at £33,800 annually, highlighting a £73,800 gap compared to Leamouth, the wealthiest neighborhood within the same local authority.
In London, neighboring areas like Poplar Central and Leamouth highlight stark contrasts in income levels, with Poplar Central reporting the second-lowest average disposable income in Tower Hamlets at £35,000 per household, significantly lower than the affluent Leamouth. Similar income disparities are observed in other regions such as Southwark, Oxford, Salford, and Birmingham, underscoring the widening wealth gaps across the country.
The data, compiled by the Office for National Statistics, sheds light on the income inequalities present in different areas based on the combined disposable income of households post-tax and other deductions. These figures are calculated for small areas known as Middle layer Super Output Areas, comprising 2,000 to 6,000 households each. Birmingham emerges as a focal point for low-income neighborhoods, with the six lowest-earning areas all situated in the city.
The analysis also reveals regional disparities, with London dominating the top 10% in average household income representation, followed by the South East and the East of England. In contrast, regions like the North East, Wales, Yorkshire and the Humber have fewer neighborhoods in the top income bracket nationally. Additionally, a considerable percentage of neighborhoods in the North West, West Midlands, and North East fall within the bottom 10% nationally in terms of income levels, underscoring the economic diversity across different regions.