Income inequality in London compared with other English regions
Key points
- Inner London is by far the most unequal of all regions in England.
- Outside London, no region has significantly more than 10% of its population in the bottom tenth of national income distribution.
- Income is more concentrated in Inner London than Outer London, and more concentrated in London than elsewhere. 20% of the population have about 60% of total income in Inner London, 50% in Outer London and 40% in the rest of England.
The proportion of the population with incomes in the top and bottom tenths of UK incomes
Shares of total net income
What do these graphs show?
In order to be consistent with the low-income statistics used elsewhere on this site, the measure of income used here is net income after housing costs (AHC). To be in the top tenth of income in 2007/08, a couple would require £708 per week, and a single person £410. By way of comparison, a couple without children with a net weekly income of less than £135, or a single person with an income of less than £78 would be in the bottom tenth.
Looking at shares of total net income, from the top graph we can see how income is more concentrated in Inner London than Outer London, and more concentrated in London than elsewhere.
20% of the population have about 60% of total income in Inner London, 50% in Outer London and 40% in the rest of England.
The poorest 50% have 15% of total income in Inner London, 20% in Outer London and 25% in the rest of England.
According to the second graph, 16% of people in Inner London live in the poorest tenth of households in the country. A further 19% live in the richest tenth. This means Inner London is by far the most unequal region in England.
Outer London also has an above-average proportion of both rich and poor people. 16% of the population in Outer London are in the top tenth of the national income distribution, and 14% are in the bottom tenth.
No English region other than London has significantly more than 10% of its population in the bottom tenth of the income distribution
Even if we take broader definition of "rich" and "poor", the pattern still holds. Inner London has the highest proportion of people in the bottom fifth by income, and the second highest proportion in the top fifth, just behind Outer London.
Data used
Household Below Average Income, DWP – the data is the average for the years 2005–06 to 2007–08
Indicator last updated: 13 July 2010
Other indicators in Working-age adults
- Working Age Poverty
- Poverty in Inner and Outer London
- In-work poverty across England
- Working-age out-of-work benefits by region
- Working age out-of-work benefits by ward
- Working age out-of-work benefits within London
- Income inequalities within London boroughs
- Pay inequalities within London
- Working-age adults lacking work over time
- Working-age adults lacking work by borough
- Young Adult Unemployment
- Adult ill health
- Adult ill-health by borough
- Low-paid residents by borough
- Low-paid jobs by borough
- Low income and ethnicity in London
- Lacking work by ethnicity
- Not working by country of birth
- Not working by ethnicity and country of birth
- Low pay by ethnicity
- Premature death by borough
- Low-paid residents by region
- Low-paid jobs by sub-region
- Families receiving in-work benefits
- Working age out-of-work benefits by borough
View all indicators
Glossary
Outer London:
Barking & Dagenham, Barnet, Bromley, Bexley, Brent, Croydon, Ealing, Enfield, Greenwich, Harrow, Havering, Hillingdon, Hounslow, Kingston upon Thames, Merton, Redbridge, Richmond upon Thames, Sutton, Waltham Forest
Inner London:
Camden, Hackney, Hammersmith & Fulham, Haringey, Islington, Kensington & Chelsea, Lambeth, Lewisham, Newham, Southwark, Tower Hamlets, Wandsworth, Westminster