Londoners ‘the poorest workers in Britain’

 

Workers living in London are the worst off in the UK despite earning the highest average salary, according to data published by job site CV-Library.

The data, which is based on roles advertised during the third quarter of 2017, showed the average annual salary in London is £37,246, 15.7% higher than the national average of £32,246. However, higher costs in London significantly outweigh the higher than average salaries, meaning Londoners have the least disposable income in the country.

Comparing the same basic living costs against average salary in 16 of the UK’s key cities revealed how employees in the north of England and Scotland are the richest in the UK.

According to CV-Library’s data, the richest to poorest UK workers are as follows:


(Basic monthly costs based on rent, relevant council tax, a local monthly travel card, basic utility bills and groceries.)

The results show that a Londoner aspiring to the same living standards as anyone else in the country will either end up in serious debt, or have to make major compromises to their living standards, despite being in a well-paid job.

Lee Biggins, founder and managing director of CV-Library, said: “London continues to be an exciting city to live and work in. Attracting people of all ages and from all backgrounds, there are fantastic employment opportunities within the capital. That said, it’s very clear from our analysis that the majority of workers in London are in danger of being left high and dry after pay day, placing many in a compromising position.

“While salaries have fallen slightly year-on-year, living costs within the nation’s capital are clearly pushing people to breaking point and the government must work harder to address this. Otherwise, we could continue to see more people retreating from London, in search of areas which offer a better state of living.”

CV-Library pointed out that current house prices underline how unobtainable it is for working Londoners to get on the property ladder. When comparing the purchase of a one-bed flat in London, to a similar one-bed flat in Glasgow, the difference is significant. Whilst the average cost of a one-bed flat in Glasgow is £75,413, the same flat in London would be £529,655; more than 6 times more expensive. However, when comparing average salaries in both cities (£37,335 in London and £32,183 in Glasgow), Londoners only earn 16% more than workers in Glasgow.

CV-Library said that in real terms, a professional in Glasgow would spend 16.3% of their salary on a mortgage for a one-bed property and still have £1,347 left in their pocket to cover bills and other living expenses. A Londoner would need 105% of their salary to pay the mortgage alone, leaving them in debt before they have even considered how to cover bills and other basic costs.

Monday, 9 October 2017

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Londoners ‘the poorest workers in Britain’