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Disposable income in the UK
Where in the UK can you make the most and spend the least?
It’s no secret that prices and salaries vary widely across the UK. Coupled with a rise in credit card usage, it’s clear that where you live will often dictate how much disposable income you have and how much you rely on alternative means to make ends meet.
If you want to earn more, most people will tell you to move to London for a better-paid job. But if you do, it’s likely that you’ll just end up paying more for living expenses. With this in mind, we looked into the pay gap in different British cities to see whether a higher income is always balanced out by a higher cost of living. Or, whether there are there places where you can earn more without also having to spend more.
We studied income and the cost of living in 30 cities around the UK to find an answer to these questions. For each city, we took the average monthly salary and subtracted the average monthly living costs and rent for one person (see our full methodology below). The result is an estimate of the average disposable income for an individual in each of these cities, shown in the map below.
Of the 30 cities in this analysis, Aberdeen came out on top for disposable income, with the average worker there potentially receiving £1,275 on average to do with as they please each month. This is 43% more than the overall UK average of £888.91. Those living in Brighton get the least disposable income, at £618, 30% below the average.
Monthly disposable income in 30 cities around the UK
Worst 5 cities for disposable income
1. Brighton (£618)
2. Cambridge (£647)
3. Nottingham (£658)
4. Norwich (£693)
5. Kingston upon Hull (£694)
Best 5 cities for disposable income
1. Aberdeen (£1,275)
2. Reading (£1,262)
3. Coventry (£1,194)
4. Lincoln (£1,150)
5. London (£1,103)
Average salary vs cost of living in the UK
To look at the data another way, the chart below shows each city’s average salary and average living costs side by side. The smaller the gap between a city’s red and blue dot, the lower the average disposable income in that city. Notably, London’s gap is about average in size, but much higher up the chart than the others, reflecting the higher incomes and costs you find there.
| City | Average monthly net income after tax (Numbeo) |
|---|---|
| Aberdeen | £2,300.59 |
| Reading | £2,465.09 |
| Coventry | £2,198.60 |
| Lincoln | £2,048.47 |
| London | £2,803.79 |
| Manchester | £2,108.12 |
| Oxford | £2,318.45 |
| Glasgow | £1,950.32 |
| Leeds | £1,947.93 |
| Derby | £1,890.05 |
| Southampton | £2,000.35 |
| Exeter | £1,911.36 |
| Cardiff | £1,876.13 |
| Belfast | £1,779.11 |
| Liverpool | £1,766.39 |
| Leicester | £1,739.09 |
| Bristol | £1,958.71 |
| Newcastle upon Tyne | £1,709.01 |
| Stoke-on-Trent | £1,637.50 |
| Birmingham | £1,797.44 |
| Sheffield | £1,692.08 |
| Edinburgh | £1,868.58 |
| Swindon | £1,757.81 |
| York | £1,792.29 |
| Milton Keynes | £1,785.33 |
| Kingston upon Hull | £1,518.87 |
| Norwich | 1,633.33 |
| Nottingham | £1,616.84 |
| Cambridge | £1,864.38 |
| Brighton | £1,932.63 |
The full results
| City | Average monthly net income after tax (Numbeo) | Monthly single person costs | Estimated single person rent | Disposable income |
|---|---|---|---|---|
| Aberdeen | £2,300.59 | £684.32 | £340.79 | £1,275.48 |
| Reading | £2,465.09 | £702.75 | £500.00 | £1,262.34 |
| Coventry | £2,198.60 | £647.21 | £356.59 | £1,194.80 |
| Lincoln | £2,048.47 | £645.48 | £252.71 | £1,150.28 |
| London | £2,803.79 | £826.16 | £874.17 | £1,103.46 |
| Manchester | £2,108.12 | £652.74 | £384.97 | £1,070.41 |
| Oxford | £2,318.45 | £694.71 | £573.48 | £1,050.26 |
| Glasgow | £1,950.32 | £612.73 | £309.12 | £1,028.47 |
| Leeds | £1,947.93 | £593.19 | £341.90 | £1,012.84 |
| Derby | £1,890.05 | £635.77 | £247.63 | £1,006.65 |
| Southampton | £2,000.35 | £642.78 | £389.93 | £967.64 |
| Exeter | £1,911.36 | £630.67 | £316.59 | £964.10 |
| Cardiff | £1,876.13 | £643.32 | £320.32 | £912.49 |
| Belfast | £1,779.11 | £571.61 | £304.48 | £903.02 |
| Liverpool | £1,766.39 | £641.00 | £291.47 | £833.92 |
| Leicester | £1,739.09 | £634.61 | £273.77 | £830.71 |
| Bristol | £1,958.71 | £705.86 | £450.11 | £802.74 |
| Newcastle upon Tyne | £1,709.01 | £611.87 | £294.85 | £802.29 |
| Stoke-on-Trent | £1,637.50 | £673.09 | £184.79 | £779.62 |
| Birmingham | £1,797.44 | £660.53 | £369.10 | £767.81 |
| Sheffield | £1,692.08 | £620.61 | £314.62 | £756.85 |
| Edinburgh | £1,868.58 | £684.49 | £437.75 | £746.34 |
| Swindon | £1,757.81 | £693.19 | £345.11 | £719.51 |
| York | £1,792.29 | £712.46 | £365.90 | £713.93 |
| Milton Keynes | £1,785.33 | £682.46 | £403.74 | £699.13 |
| Kingston upon Hull | £1,518.87 | £597.25 | £227.08 | £694.54 |
| Norwich | £1633.33 | £645.02 | £295.14 | £693.17 |
| Nottingham | £1,616.84 | £665.06 | £292.80 | £658.98 |
| Cambridge | £1,864.38 | £723.47 | £493.41 | £647.50 |
| Brighton | £1,932.63 | £762.17 | £552.42 | £618.04 |
Methodology
- For rent, we found the total price per room of a three room apartment to get an approximate figure for the rent a single person could expect to pay.
- To get the disposable income figure for each city, the monthly single person’s rent and living costs were subtracted from the average monthly income after tax.
Sources
- Numbeo
- Thinktank for centres
- ONS
Click here for more research. For all media enquiries, please contact
Matt Mckenna
Head of UK communications
T: +44 20 8191 8806
Head of UK communications
T: +44 20 8191 8806
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