Londoners’ disposable income falls behind that of Scottish workers

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London workers’ disposable incomes have still not recovered to their pre-financial crisis levels, leaving them with less money to spend than their Scottish counterparts, according to a think-tank.

Londoners’ average weekly household income after housing costs had fallen to £400 by 2013-14 – 4.3% behind the 2007-08 level – Resolution Foundation research reveals.

That compares with £407 north of the border, £444 in the South East and £414 in the east of England.

It remains higher than the UK average of £386.

The Foundation said a pay squeeze led to sharper than average falls in wages in the capital and the biggest fall in living standards across the country.

London’s high cost housing market has also been a factor, with rents and mortgage repayments generally being more expensive than in the rest of the UK, the Foundation added.

By contrast Scotland’s pay growth has outperformed the rest of the nation and overturned the English ‘pay premium’ – the longstanding wage gap between England and Scotland – for the first time since records began. 

Typical pay in Scotland is now – at £11.92 an hour – which is marginally higher than in England (£11.84).

“The years since the crash have been tough for many families across London, and we are yet to see the progress made by other nations and regions across the UK such as Scotland,” said Conor D’Arcy, Policy Analyst at the Resolution Foundation.

“Along with a smaller pay squeeze, and in contrast to the much higher housing costs faced by those in the capital, Scotland’s generally more affordable housing market has been one of the drivers, illustrating how crucial accommodation costs are for living standards.”

Source Article from http://www.standard.co.uk/business/londoners-disposable-income-falls-behind-that-of-scottish-workers-a3159326.html

January 19, 2016 |
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