According to new figures from Halifax, the average salary has increased by 21% in the past five years. We reveal where the fat cats work.
The average salary for an adult full-time worker in Great Britain has risen by just over a fifth (21%) in the past five years, according to Britain's biggest mortgage lender. Using data from the Office for National Statistics' Annual Survey of Hours and Earnings, Halifax found that a typical full-time worker earned £31,500 in April 2008, versus £25,939 in April 2003. This equates to an average pay rise of 3.9% a year.
However, when weighed against a substantial rise in the cost of living, an extra £5,561 over five years doesn't seem terribly impressive. Over the same period, the Retail Prices Index (RPI) measure of inflation has climbed by almost a fifth (18%), leaving a typical worker hardly much better off -- especially after taking rising housing costs and increased taxes into account.
As you'd expect, Halifax found that both average earnings and wage increases vary dramatically across the country. The biggest gainers since 2003 are workers in Thanet, Kent, who have seen their average wage rise by three-fifths (60%) -- almost triple the national rise of 21% -- from £18,769 to £29,956. In these nine areas of Britain, wages shot up by at least twice the national average of 21%:
Biggest wage rises, 2003 to 2008
Local authority | Region | 2003 wage (£) | 2008 wage (£) | Change (%) |
|---|---|---|---|---|
Thanet | South East | 18,769 | 29,956 | 60 |
Havering | London | 20,917 | 32,454 | 55 |
Shepway | South East | 22,118 | 32,449 | 47 |
Hammersmith and Fulham | London | 32,387 | 47,313 | 46 |
Westminster | London | 39,577 | 57,737 | 46 |
Ryedale | Yorkshire & Humberside | 19,986 | 29,081 | 46 |
South Derbyshire | East Midlands | 21,181 | 30,749 | 45 |
Richmond upon Thames | London | 26,086 | 37,764 | 45 |
City of London | London | 57,293 | 82,084 | 43 |
Great Britain | 25,939 | 31,500 | 21 |
As you can see, the good times rolled particularly well in the wealthier parts of London, including the City, Westminster, Hammersmith and Fulham, and Richmond. Indeed, in the Square Mile, the average wage jumped by £24,791 in five years, or close to £5,000 a year. However, given the recent turmoil in global financial markets, job cuts are likely to take a heavy toll on City workers.
Now for a list of the highest-earning parts of the UK which, as you'd expect, is filled by London and the South East:
Highest wages in 2008
Local Authority | Region | 2008 wage (£) |
City of London | London | 82,084 |
Tower Hamlets | London | 69,474 |
Westminster | London | 57,737 |
Islington | London | 57,525 |
Windsor and Maidenhead UA | South East | 47,675 |
Hammersmith and Fulham | London | 47,313 |
Harlow | East | 46,122 |
Bracknell Forest UA | South East | 44,249 |
Wokingham UA | South East | 43,360 |
Camden | London | 42,513 |
Great Britain |
| 31,500 |
Tower Hamlets -- often mistakenly thought of as a deprived London borough -- is second in our table, thanks to high-earning workers in Canary Wharf and Docklands. Of course, journalists are often accused of being fixated with London, but I'm proud to be from the North, so let's check out the highest earners throughout the regions:
Average earnings by region, 2003 to 2008
Region | 2003 wage (£) | 2008 wage (£) | Change (%) |
London | 37,416 | 46,462 | 24 |
East Midlands | 22,817 | 28,057 | 23 |
Scotland | 23,080 | 28,296 | 23 |
Yorkshire and Humberside | 22,694 | 27,534 | 21 |
North West | 23,261 | 28,045 | 21 |
West Midlands | 23,132 | 27,872 | 20 |
North East | 21,359 | 25,551 | 20 |
South East | 27,576 | 32,819 | 19 |
South West | 23,715 | 28,182 | 19 |
East | 25,609 | 30,318 | 18 |
Wales | 21,837 | 25,677 | 18 |
Great Britain | 25,939 | 31,500 | 21 |
As you can see, London has both the highest average wage and the steepest wage growth (at 24% versus 21% for Britain as a whole). The East Midlands and Scotland (both at 23%) also beat the national average. The areas with the lowest wage rises were the East and Wales (both at 18%).
Finally, I don't know about you, but I feel a twinge of `wage envy' when I see the £82,084 average wage banked by those working in the City of London. That's £50,584 more than the £31,500 wage for Britain as a whole. Given the awful state of the UK economy, banks and stock market, I wonder whether these folk are truly worth their whopping wages...
Checklist
1. Take a look at the average wage for your part of Britain. How does it compare with your own?
2. Always remember that `averages invite comparisons', so wages do vary enormously, even in a given location.
3. Many other factors affect how much you earn, including your education, chosen profession, gender, age and hours worked. However, what's vital is how well you manage your money, not how much you get!
Open a first-class savings account today