North-south income gap 'persists'

The north-south divide persists, at least in cash terms, according to new figures.

While disposable household income per head in London was 23% above the UK average, the North East came in at 14% below, a report from the Office for National Statistics has shown.

In cash terms, disposable earnings in the capital were £16,900 per person, compared with an average of £13,900.

Two other regions also pulled in more than average; the East of England with £14,600 per head and the South East with £15,400.

The lowest were the North East with £11,800 and Northern Ireland with £12,000.

The figures are estimates for 2006, based on earnings, benefits and insurance payouts, minus mortgage payments and taxes.

Overall, household income per head increased at similar rates all over the UK, showing no signs of wealth inequalities evening out.

Household income is the money left after taxes, national insurance, pension payments and interest.

However, in terms of growth in disposable income, Northern Ireland saw the biggest increase with 4%, compared with an average of 3.5%.

The lowest was in the East and South East of England with 3.2%, although London fared better with 3.8%.

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