Income Distribution in London, United Kingdom

Proportion of total net and gross income before housing costs by decile (2022/23) in London and Rest of England

From the data above, there is significant income inequality in London.

• The 10th decile (highest earners) has a net income of £1,140,033,730, which is about 17.4 times higher than the 1st decile (lowest earners) at £65,572,103
• The top decile holds 32.3% of the total net income, which is more than the bottom 60% combined

Difference between gross vs. net income

• The difference between gross and net income in London is largest in the top deciles, indicative of a progressive tax system
• For the 10th decile, gross income is significantly higher than net income

Comparison with the Rest of United Kingdom

• London shows greater income inequality than the rest of England
• The gap between the highest and lowest deciles is more pronounced in London for both net and gross income

These findings paint a picture of London as a city of economic extremes, where opportunities for very high earnings coexist with potentially greater challenges for those in lower income brackets.