Household finances improved across the UK in 2024, with gross disposable household income rising in every major country and region.

But behind the national increase lies a much more uneven picture: people in some parts of London had several times more money available to spend or save than residents of the lowest-income areas.

Total gross disposable household income, or GDHI, reached nearly £1.8 trillion in 2024 and grew by 7.4% compared with the previous year. GDHI measures the money households have left after taxes and social contributions, while also including benefits and income earned by self-employed people.

Disposable Income Rose Nationwide

England accounted for 86.3% of total UK household disposable income, followed by Scotland with 7.5%, Wales with 3.8% and Northern Ireland with 2.4%. Growth, however, was strongest outside England.

Northern Ireland recorded the largest increase in total GDHI at 8.1%, followed by Scotland at 7.9% and Wales at 7.6%. England grew by 7.3%.

The UK average disposable income per person reached £25,965.

But only England as a whole stood above that national average among the four constituent countries, with £26,490 per person.

Scotland stood at £24,283, Northern Ireland at £22,258 and Wales at £21,469. The numbers show that household income increased across the country, but where someone lives still has a major influence on how much money is available after taxes and transfers.

London Remains Far Ahead

London continued to dominate the regional rankings. Average GDHI per person in the capital reached £36,487 in 2024, equivalent to 140.5% of the UK average. The South East followed with £29,577, while the East of England recorded £26,795. These were the only three major English regions above the overall UK average.

At the other end of the scale, the North East recorded £20,562 per person, the lowest among the 12 major UK regions.Yorkshire and the Humber stood at £21,913, while the West Midlands recorded £22,064. The difference between London and the North East was therefore almost £16,000 per person.

Inflation Changes the Picture

Nominal income growth does not necessarily mean households are becoming significantly better off. To understand purchasing power, economists also look at real household disposable income, which removes the effect of inflation.

On this measure, real disposable income per person increased by 3.1% across the UK in 2024.

Northern Ireland recorded the strongest growth at 4.1%, followed by Scotland at 3.7%.

The South East grew by 3.1%, while the East Midlands increased 3.0%.

The North East once again recorded the weakest improvement at 2.2%.

Official statisticians emphasize that this inflation-adjusted measure provides a better picture of changes in actual household purchasing power because nominal income can rise even when everyday costs are increasing at the same time.

London’s Internal Gap Is Huge

The most dramatic differences appear when the data are broken down into smaller local areas. Westminster and the City of London recorded GDHI of £84,292 per person in 2024 — more than three times the UK average. Kensington and Chelsea together with Hammersmith and Fulham followed at £80,152, while Camden reached £72,346. Wandsworth recorded £49,715, and Haringey and Islington stood at £41,415. All five of the highest-income local areas were in London. But even within the capital, the gap was enormous.

Barking and Dagenham together with Havering recorded £24,489 per person, less than one-third of the level seen in Westminster and the City. London is therefore not simply a high-income region; it contains some of the sharpest internal contrasts in the country.

Leicester Records the Lowest Level

The five lowest-income local areas were all located in the Midlands or northern England. Leicester had the lowest GDHI per person at £16,786. Sandwell followed with £17,273, Nottingham with £17,696, Blackburn with Darwen with £17,707 and Kingston upon Hull with £17,731.

The contrast between Leicester and Westminster is particularly striking. Average disposable income per person in Westminster and the City of London was more than five times higher. That gap illustrates why national averages can hide major differences in living standards and household resources.

Why Regional Income Matters

GDHI is useful because it measures where people live rather than where they work.

That makes it less distorted by commuting patterns than some other regional economic indicators.

It also gives policymakers a clearer picture of how much money households actually have available for consumption or saving after taxes and benefits.

The latest figures also introduce regional real household disposable income measures, allowing changes in purchasing power to be compared more accurately across different parts of the country.