Starling Bank statistics
With more than 930,000 users and £1.4 million in revenue, Starling Bank is definitely one of the strongest disruptors in the digital banking industry. Read more…
Disposable income around the UK
Where in the UK can you make the most, and spend the least?
If you want to earn more, most people will tell you to move to London for a better-paid job. But if you did, it’s likely that you’d just end up paying more for living expenses. With this in mind, we looked into the pay gap found in different British cities and asked whether a higher income is always balanced out by a higher cost of living. Or, if there are there places where you can earn more without also having to spend more.
We studied income and cost-of-living in 30 cities around the UK to answer these questions.
For each city, we took the average monthly salary, and subtracted from this the average monthly living costs and rent for one person (see full methodology below). The result is an estimate for the average disposable income for an individual in each of these cities, shown in the map below.
Of the 30 cities in this analysis, Derby came out on top for disposable income, with the average worker there potentially getting £1,456 on average to do whatever they want with each month. This is 34% above the overall average of £1,083. Those living in Brighton get the least disposable income, at £751, 31% below the average.
Monthly disposable income in 30 cities around the UK
Worst 5 cities for disposable income
1. Brighton
2. Norwich
3. Plymouth
4. Manchester
5. York
Best 5 cities for disposable income
1. Derby
2. Reading
3. Southampton
4. Edinburgh
5. Aberdeen
Average salary vs cost of living in the UK
| Country | Total costs |
|---|---|
| Derby | £809 |
| Reading | £1,186 |
| Southampton | £947 |
| Edinburgh | £1,019 |
| Aberdeen | £1,027 |
| Milton Keynes | £1,107 |
| Belfast | £831 |
| Swindon | £1,007 |
| Liverpool | £850 |
| Cambridge | £1,192 |
| Leeds | £933 |
| Coventry | £943 |
| Glasgow | £925 |
| London | £1,629 |
| Birmingham | £952 |
| Newcastle upon Tyne | £882 |
| Kingston upon Hull | £767 |
| Cardiff | £906 |
| Sheffield | £818 |
| Bristol | £1,076 |
| Oxford | £1,263 |
| Nottingham | £875 |
| Leicester | £874 |
| Exeter | £941 |
| Portsmouth | £1,024 |
| York | £959 |
| Manchester | £1,002 |
| Plymouth | £883 |
| Norwich | £889 |
| Brighton | £1,170 |
To look at the data another way, the chart above shows each city’s average salary and 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.
The full results
| City | Average monthly net salary (after tax) | Monthly single person costs (including rent) | Estimated single person rent | Disposable income |
|---|---|---|---|---|
| Derby | £2,264 | £809 | £226 | £1,456 |
| Reading | £2,473 | £1,186 | £472 | £1,287 |
| Southampton | £2,211 | £947 | £379 | £1,264 |
| Edinburgh | £2,274 | £1,019 | £399 | £1,256 |
| Aberdeen | £2,271 | £1,027 | £338 | £1,244 |
| Milton Keynes | £2,348 | £1,107 | £394 | £1,241 |
| Belfast | £1,982 | £831 | £265 | £1,152 |
| Swindon | £2,145 | £1,007 | £344 | £1,138 |
| Liverpool | £1,975 | £850 | £277 | £1,126 |
| Cambridge | £2,313 | £1,192 | £512 | £1,121 |
| Leeds | £2,050 | £933 | £316 | £1,116 |
| Coventry | £2,048 | £943 | £319 | £1,104 |
| Glasgow | £2,026 | £925 | £332 | £1,101 |
| London | £2,724 | £1,629 | £850 | £1,095 |
| Birmingham | £2,030 | £952 | £362 | £1,078 |
| Newcastle upon Tyne | £1,939 | £882 | £265 | £1,057 |
| Kingston upon Hull | £1,816 | £767 | £204 | £1,049 |
| Cardiff | £1,952 | £906 | £335 | £1,046 |
| Sheffield | £1,846 | £818 | £255 | £1,028 |
| Bristol | £2,100 | £1,076 | £434 | £1,023 |
| Oxford | £2,284 | £1,263 | £591 | £1,021 |
| Nottingham | £1,887 | £875 | £274 | £1,012 |
| Leicester | £1,865 | £874 | £254 | £992 |
| Exeter | £1,931 | £941 | £336 | £990 |
| Portsmouth | £2,004 | £1,024 | £365 | £980 |
| York | £1,938 | £959 | £333 | £979 |
| Manchester | £1,975 | £1,002 | £353 | £973 |
| Plymouth | £1,820 | £883 | £228 | £937 |
| Norwich | £1,762 | £889 | £269 | £872 |
| Brighton | £1,921 | £1,170 | £509 | £751 |
Methodology
think tank Centre for Cities
Numbeo
Numbeo
For rent, the total rents listed above were added, then divided by six, to get an approximate figure for the rent a single person could expect to pay.
The disposable income figure was then found by subtracting this, and a single person’s monthly costs without rent, from the average monthly income after tax.
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
Related articles
Where does our tax money go?
Anyone who earns more than £12,500 during the 2019/2020 financial year should pay income tax. We took a look at where the tax money end up. Read more…
Current account statistics
Current accounts can offer a number of different perks, including better interest rates, cash incentives for switching and overdrafts. You might consider if your current account is offering you the best features. Read more…
Cash ISAs statistics
Where the UK stands with interest-free savings accounts. Read more…
What is the FSCS?
The Financial Services Compensation Scheme protects customers' money if their bank or building society fails. But how does it work and are you covered? Read more…
Win £500 in Finder’s competition
Win £500 in Finder's competition! Here's how to enter. Read more…
