London's Wealth Gap Soars: Richest Earn £76k More Than Poorest

Startling new data has laid bare the accelerating economic divide within the capital, revealing that the gap between London's wealthiest and most deprived neighbourhoods has ballooned to nearly £76,000. The figures from the Office for National Statistics (ONS) highlight a city of extreme contrasts, where areas of immense prosperity exist just streets away from zones of significant financial hardship.

A Growing Chasm in the Capital

The analysis, which examines the financial year ending in 2023, identifies Leamouth in Tower Hamlets as London's highest-earning neighbourhood. Households in this area, home to upmarket riverside towers near Canary Wharf, enjoy an average disposable income of £107,600 after tax. At the opposite end of the spectrum sits Southall West in Ealing, where the average household has just £31,700 to spend each year.

This represents an annual disparity of £75,900. Alarmingly, this gap has widened dramatically in a short period. When comparable data was last published for the year ending 2020, the difference was £41,300, meaning the income divide has expanded by a staggering 84% in just three years.

Pockets of Poverty Amidst Prosperity

The statistics underscore how poverty and affluence often sit side-by-side in London. Leamouth, the capital's richest enclave, directly borders Poplar Central, one of its poorest. Households in Poplar Central had an average disposable income of £35,000, creating a £72,600 gulf with their immediate neighbours.

A similar story unfolds in Westminster. The Church Street neighbourhood is the fourth poorest in London, with average household disposable income at £32,000. Yet it is encircled by some of the city's most affluent areas, including Bryanston & Dorset Square (£61,000), Regent’s Park (£59,600), and Little Venice (£58,100).

National Context and London's Dominance

The ONS data, calculated every two years for areas known as Middle-layer Super Output Areas, provides a granular look at UK inequality. It reveals that London dominates the national picture of wealth. Almost half (45%) of all London neighbourhoods rank within the top 10% nationally for average disposable household income.

This contrasts sharply with other regions. The North East of England has no neighbourhoods in the top 10%, while Wales and Yorkshire and the Humber have less than 1%. Conversely, the North West and West Midlands each have 23% of their neighbourhoods in the bottom 10% nationally.

The six very lowest earning areas in the entire country are all located in Birmingham, with average household incomes clustering around £21,500 to £22,000.

London's 20 Richest Neighbourhoods (Average Disposable Income):