The disparity in income levels between affluent and impoverished neighborhoods in the UK is widening, as revealed by the latest data from the Office for National Statistics. In the financial year ending 2023, households in the upscale Leamouth neighborhood of Tower Hamlets boasted an average disposable income of £107,600 annually, making it the highest-earning neighborhood in the country. This is in stark contrast to the situation in Sparkhill North, Birmingham, where households struggled with an average disposable income of just under £20,800 per year, a substantial £86,800 less than their counterparts in Leamouth.
The income gap has seen a significant surge, increasing by 73% in just three years. For instance, Shadwell North, also in Tower Hamlets, recorded the lowest average disposable income in the region at £33,800 annually, creating a substantial £73,800 difference compared to Leamouth. Similarly, Poplar Central in London displayed a striking contrast, with an average household disposable income of £35,000, significantly lower than the neighboring Leamouth.
Disparities in income levels were also observed in other regions. Southwark showcased a £63,300 gap between its wealthiest area, Butler’s Wharf and Queen’s Walk, and the lower-income South Bermondsey East. Oxford followed suit with an income gap exceeding £53,200 between Oxford Central and Blackbird Leys. In Salford, households in Salford Quays enjoyed a disposable income of £67,800 annually, compared to Pendleton’s £23,400, representing a gap of £44,400.
The data underscores the stark reality of income inequality, with the Office for National Statistics shedding light on the vast disparities in household incomes. Regular assessments are conducted to calculate average disposable incomes in small areas, known as Middle layer Super Output Areas, comprising 2,000 to 6,000 households.
In Birmingham, the six lowest-earning areas were identified, with Sparkhill North leading the list, followed by Sparkbrook South, Small Heath Park, Saltley East, Washwood Heath, and Bordesley Green North. The data is accessible through an interactive map, allowing individuals to compare income levels in their localities.
London stands out with 45% of its neighborhoods ranking in the top 10% nationally for average disposable household income, while regions like the South East, East of England, and the North West exhibit varying proportions of affluent neighborhoods. In contrast, the North East lacks neighborhoods in the top 10%. Wales, Yorkshire and the Humber, and several other regions have a minimal presence in the top 10%, with a notable concentration of neighborhoods in the bottom 10% in certain areas like the North West, West Midlands, and North East.
