In the latest release of data from the Office for National Statistics, it has been reported that in 2021, the gross disposable household income (GDHI) in the United Kingdom experienced a notable increase of 3.6% when compared to the previous year, 2020.
Regional Variation in GDHI
When analyzing GDHI by constituent country and region within the UK, certain trends emerge. Northern Ireland saw the highest growth in GDHI in 2021, with a significant increase of 4.5%. England, Wales, and Scotland also reported increases of 3.7%, 2.8%, and 2.6%, respectively.
London Leads in GDHI per Head
Delving deeper into the regional data, it is apparent that London stands out with the highest GDHI per head in 2021. On average, each person in London had £31,094 available to spend or save. This figure significantly outpaces the rest of the UK, with Northern Ireland reporting the lowest GDHI per head at £17,636, which is notably lower than the UK average of £21,679.
Local Variation in GDHI
Within London, Westminster emerged as the local area with the highest GDHI per head in 2021, with an impressive £67,389 per person. This is more than three times the UK average. In contrast, Leicester reported the lowest GDHI per head at £14,605.
Top and Bottom Performers
In terms of local areas (ITL3 regions) with the largest increases in total GDHI in 2021, Kensington and Chelsea, and Hammersmith and Fulham led the way with a growth rate of 6.4%. Camden and City of London followed closely with a 6.3% increase. On the other hand, Causeway Coast and Glens (0.2%), Bridgend and Neath Port Talbot (1.2%), and Falkirk (1.4%) recorded the smallest increases.
Overall Picture
The total GDHI in the UK for 2021 amounted to an impressive £1.5 trillion. England held the largest share of this income, accounting for 86.4%, followed by Scotland at 7.4%, Wales at 3.9%, and Northern Ireland with the lowest share at 2.3%. Interestingly, when considering GDHI per head, only England had a GDHI per head above the UK average.
This data reflects the economic dynamics within the UK, highlighting both regional and local variations in disposable household income, which play a significant role in the country’s economic landscape. Stay tuned for more updates on the UK’s economic trends.