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Londoners only get £12 more disposable income than the UK average

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Despite having the highest average wage in the country of £2,724 per month, Londoners’ disposable income is £1,095 – only £12 above the UK average in the study. Average monthly outgoings in the city are £1,629, which is over £350 more than any other city.

The UK city where residents have the most disposable income has been revealed to be Derby, with locals enjoying an average of £1,456 to spend per month after after tax, bills and general (essential) outgoings such as travel and food. Derby residents earn around £200 a month above the national average, and have the second lowest cost of living in the study.

The analysis by personal finance comparison website finder.com compared average city salaries against local rent and other standard monthly outgoings for 30 UK cities to find who enjoys the most, and least, disposable income.

Residents in Reading earn the second highest wage in the study (£2,473 per month) helping them to keep £1,287 after bills. This is followed by Southampton as the third ‘wealthiest’ city, where the figure is £1,264.

This is significantly more than the British average in the study, which sees people keep an £1,083 per month after expenses and tax, to spend on non-essentials. The average monthly wage is £2,073, while the average (essential) outgoings, such as rent, travel and food, total £990.

At the bottom end of the scale, residents of Brighton are left with only £751 every month to spend on non-essentials. This is almost half the amount of those in Derby, and is due to Brighton having the fifth highest living costs (£1,170) but also the seventh lowest average salary (£1,921) in the study.

The second ‘poorest’ city for disposable income is Norwich, where the lowest monthly salary in the study (£1,762), leaves locals with £872 every month. The third worst city to live in for spare cash is Plymouth, where the figure is £937.

Residents of Hull have the lowest outgoings of any city in the UK at £767 per month, although a lower monthly wage of £1,816 means their disposable income is £1,049, which is below the study’s UK average.

Speaking about the findings, Jon Ostler, CEO at finder.com, said: “If you’re considering moving to a new city, it is important to have an idea of the cost of living there. It may seem counterintuitive, but this analysis shows that a lower wage offered in a different city doesn’t automatically mean you have less money to spend, and could actually see you keep more.

“If you want to keep a closer eye on what you’re spending, budgeting apps are useful tools to track your outgoings. This will ensure you don’t overreach financially but can also help you grow your savings or spot ways that you can easily save money.”

Top five cities for disposable income

  1. Derby
  2. Reading
  3. Southampton
  4. Edinburgh
  5. Aberdeen

Bottom five cities for disposable income

  1. Brighton
  2. Norwich
  3. Plymouth
  4. Manchester
  5. York



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