Personal Income: Greater London

Treasury written question – answered on 21st January 2008.

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Photo of Tom Brake Tom Brake Shadow Minister (Olympics and London)

To ask the Chancellor of the Exchequer what the average household income was in each London borough in each year since 1997.

Photo of Angela Eagle Angela Eagle The Exchequer Secretary, Member, Labour Party National Executive Committee

The information requested falls within the responsibility of the National Statistician, who has been asked to reply.

Letter from Colin Mowl, dated 21 January 2008:

The National Statistician has been asked to reply to your recent question asking what the average household income was in each London Borough in each year since 1997. I am replying in her absence. (179726).

Estimates of household income (which include income from all sources such as earnings, benefits, pensions, and investment income), are generally based on household surveys. The largest of these is the Family Resources Survey which has an annual sample in the UK of around 28,000 households. This is sufficient to produce estimates of household income at national and regional level, but not for smaller areas. Statistics on earnings by employees are available for local authorities from the Annual Survey of Hours and Earnings (ASHE) which is an employer-based survey.

The ONS has published estimates of household income for what are known as the medium layer super output areas, for 2004/05 only. These estimates are based on a statistical model and are classed as experimental statistics—this means they have been developed in accordance with the principles set out in the National Statistics Code of Practice but have yet to be fully accredited as National Statistics. They are available through the Neighbourhood Statistics section of the ONS website. Super Output Areas (SOA's) are a new geographic hierarchy designed to improve the reporting of small area statistics. Unlike electoral wards, these SOA's are of consistent size across the country and are not subject to regular boundary change.

The table provided shows household income for each London borough for 2004/05, before and after housing costs. These estimates have been calculated using the estimates of income and also estimates of population for each SOA to calculate a weighted average income for each London Borough. The population estimates themselves are also experimental statistics. Figures on the number of households in each SOA are not available.

The average household income figures for the UK are taken from the 'Households Below Average Income' series produced using the Family Resources Survey. These are National Statistics. The 'Household Below Average Income' series usually presents results based on median incomes, however mean incomes are presented here to be more comparable with the small area statistics.

Average weekly household income( 1,2) —London boroughs, 2004-05
£ (per week)
Net weekly equivalised( 3) household income
Before housing costs( 4) After housing costs( 4)
Barking and Dagenham 430 340
Barnet 600 530
Bexley 510 450
Brent 490 410
Bromley 600 540
Camden 630 530
City of London 880 830
Croydon 540 470
Ealing 560 480
Enfield 520 460
Greenwich 500 410
Hackney 450 360
Hammersmith and Fulham 660 560
Haringey 530 430
Harrow 560 490
Havering 510 460
Hillingdon 540 480
Hounslow 550 460
Islington 550 450
Kensington and Chelsea 780 670
Kingston upon Thames 640 580
Lambeth 550 440
Lewisham 510 420
Merton 630 550
Newham 390 300
Redbridge 520 460
Richmond upon Thames 760 690
Southwark 510 410
Sutton 570 510
Tower Hamlets 440 350
Waltham Forest 490 400
Wandsworth 680 580
Westminster 700 590
UK 430 370
(1) Figures rounded to the nearest 10.

(2) Based on a population weighted average of medium layer super output areas.

(3) Equivalised incomes are adjusted for different household sizes and compositions. An equivalised income indicates a standard of living that could be achieved by a two adult household with no children, with that actual income.

(4) Housing costs include rent (gross of housing benefit), water charges, mortgage interest payments, structural insurance and ground rent and service charges.

Source:

ONS, Department for Work and Pensions

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