The gap between what people earn in London and the rest of the country has narrowed since the early 2000s, according to the Institute for Fiscal Studies (IFS).
It is difficult to pinpoint the geographic inequalities in income and household income in the UK. Here are some figures and analyzes.
Faster revenue growth outside London
The introduction of a higher minimum wage had a bigger impact outside the capital, limiting inequalities between London and the rest of the country. Indeed, wages are again above those before the recession due to the economic crisis of 2007. After taking inflation into account, the average earnings of full-time jobs in London have not increased. only 1.5% since 2002, compared to 5.6% in the rest of the country. However, there are still large disparities in income and productivity between the economic epicenter and the other provinces.
A worrying level of poverty when the cost of housing is taken into account
The cost of housing is far too high in the capital while the level of poverty is at its lowest in London. This gulf between the wages of Londoners and the price of real estate remains very worrying. According to the IFS, median household income after deducting housing costs has risen 13% since the early 2000s outside the capital, compared with just 6% growth in London over the same period. This proves that despite an increase in wages, even very slight in the capital, this is not enough, since real estate prices keep increasing.
London workers are paid much better
Wages in London may have increased more slowly, but they are still much higher than elsewhere. The wealth of a household from one part of the UK to another varies enormously. A Londoner who earns more than £ 85,000 will be counted among the top 10% of earners while in Wales it is enough to earn just under £ 50,000 to be part of this 10% of employees considered. like the highest paid.
Londoners’ wealth has gained even more value as housing prices rise
With the increase in the price of housing in London, owning a house, apartment or the like has increased the value of Londoners’ potential heritage tenfold compared to the rest of the country. The average financial and property wealth of Londoners soared 150% in the decade leading up to 2018, compared to just 3% for the north-east of England.
Better school outcomes for children from London’s most disadvantaged backgrounds
Almost half of children with access to free school meals in central London pursue higher education, compared with less than a fifth of similar cases in several other English regions. The IFS report also indicates that students in London enjoy better academic results. In 2005, 33% of young people attending public schools in central London entered higher education. Today, 55% of young people in this field attend university. On the other hand, 37% of young people in the South-West now go to university, against 29% in 2005.
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