Lowest paid living in Newham as rates remain static across capital

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Photo: Shaun Wilkinson ┃Shutterstock.com

The lowest paid full time workers in London appear to be living in Newham. Hourly rates of pay for residents of the East London borough are lower than the typical rate for the UK generally at £12.90.

People living in the City of London or the best-paid borough, Westminster, are typically earning in excess of £250 per week more with an hourly rate of pay over £20.

The figures are revealed in the Annual Survey of Hours and Earnings from the Office for National Statistics. They are based upon a sample of PAYE tax records and are considered the most reliable guide to pay rates.

Newham is not the only London borough where the median pay rate is below the rate for the UK generally. In Barking and Dagenham the full time hourly rate is £13.31, that’s 5p per hour below the UK median rate.

In contrast, across the river from Newham, the hourly rate in Greenwich is £3 higher.

Hourly pay full time London map

The median rate in Brent is below £14 per hour. In Enfield, Haringey, Waltham Forest, Hounslow and Ealing it is below £15.

Outside the centre, rates are highest in a pocket of South West London. Kensington and Chelsea, Richmond and Wandsworth have rates above £19 per hour. In Hammersmith and Fulham it is above £18.

The ONS uses a median rate or mid point rather than calculating an average, which would be distorted by a small number of very highly paid people. The rates are before tax and do not include overtime.

Rates of pay in London remain higher than the rest of the country. The London-wide median rate for full time employment is £16.16, £1.44 per hour more than the next nearest region, the South East of England, and £4.15 more than the lowest paid region, Northern Ireland.

Hourly rates full time regional

The median rate across the UK moved very little in the past year, rising by just 1.5% but that is 5 times higher than London where the hourly rate rose by just 5p since 2014.

Source data

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