Average annual earnings for full-time employees in the UK 2022, by region

The median annual earnings in the United Kingdom was 33,000 British pounds per year in 2022. Annual earnings varied significantly by region, ranging from 41,866 pounds in London to 29,521 pounds in the North East. Along with London, two other areas of the UK had median annual earnings above the UK average; South East England, and Scotland, at 34,431 pounds and 33,332 pounds respectively. All the regions of Southern England (London, South East, East, South West) are in the top half of regions for annual earnings. By comparison, the three regions of Northern England (North West, Yorkshire, North West) are in the bottom half, along with East Midlands, Wales, and Northern Ireland.

Regional Inequality in the UK

A variety of other indicators highlight the degree of regional inequality in the UK, especially between London and the rest of the country. Productivity in London, as measured by output per hour, was 34.3 percent higher than the UK average. By comparison, every other UK region, except the South East, fell below the UK average for productivity. In gross domestic product per head, London was also an outlier. The average GDP per head in the UK was 32,141 pounds in 2020, but for London it was 55,974 pounds. Again, the South East's GDP per head was slightly above the UK average, with every other region below it. Within London itself there is also great degree of inequality. In 2021, for example, the average earnings in the the historic City of London borough were 1,138 pounds per week, compared with 588 pounds in Redbridge, a borough in the North East of London.

Inflation outpacing wage growth going into 2023

After the initial economic disruption caused by COVID-19 pandemic subsided, wages began to steadily grow in the UK. This reached a peak in June 2021, when weekly wages for regular pay were growing at 7.3 percent, or 5.2 percent when adjusted for inflation. Since that peak, however, real wage growth has fallen significantly. In October 2022, for example, while regular pay was growing by 6.1 percent, the inflation rate had surged to 11.1 percent, meaning that real wages were actually shrinking. Although it is likely inflation peaked in that month, the damage caused by high energy and food inflation has precipitated the worst Cost of Living Crisis in the UK for a generation.