The disparity in income levels between the wealthiest and poorest neighborhoods in the country is widening, with a significant difference of nearly £87,000 in annual disposable income between the two extremes. According to recent data from the Office for National Statistics, households in the affluent Leamouth neighborhood of Tower Hamlets had an average post-tax disposable income of £107,600 in the financial year ending 2023, making it the highest-earning neighborhood in the UK.

In contrast, Sparkhill North in Birmingham recorded the lowest average income nationwide, with households having an annual disposable income of just under £20,800. This figure represents a substantial £86,800 difference compared to the affluent Leamouth area.

The income gap between the richest and poorest neighborhoods has increased by 73% within three years, from £50,300 in the financial year ending 2020 to £87,000 currently. Notably, disparities in disposable income also exist within the same council areas, with Shadwell North in Tower Hamlets reporting the lowest average disposable income in the region.

In the capital city, stark income discrepancies are evident in neighborhoods like Poplar Central, where households have an average disposable income of £35,000, significantly lower than their affluent neighbors in Leamouth. Similar income disparities exist in Southwark and Oxford, where neighborhoods like Butler’s Wharf and Oxford Central boast significantly higher disposable incomes compared to their lower-earning counterparts.

The latest data from the Office for National Statistics reveals the vast disparities in household income levels across different regions. By examining the combined disposable income of households after deductions, the ONS highlights the income gaps within Middle layer Super Output Areas, each comprising between 2,000 and 6,000 households.

Birmingham stands out with the six lowest-earning areas in the country, underscoring the income inequality prevalent within the city. Meanwhile, regional variations in income distribution show that London neighborhoods dominate the top 10% of earners, while areas in the North East have no representation in the top bracket.

In summary, the income disparities exposed by the ONS data underscore the urgent need for addressing economic inequalities within and across regions in the UK.