Dreary reality of North East salary inflation compared to booming London earners

Workers in London are being given a much greater chance at fighting the cost of living crisis compared to those in the North East.

Those in the capital saw their pay increase by more than 5%, even after inflation, in the three months to June whilst those in the North East experienced difficult cuts, analysis by NationalWorld unveils.

Last week the Office for National Statistics (ONS) released figures showing UK workers had experienced their sharpest pay slump since records began in 2001.

Wages excluding bonuses fell by 4.1% year-on-year from April to June, once the Consumer Prices Index (CPI) measure of inflation is taken into account. However, a regional breakdown of this data isn't available.

NationalWorld took separate gross weekly earning regional figures from the ONS and adjusted them for inflation in the same way the CPI does. The figures are self-reported earnings, based on a survey of workers.

The analysis showed that salaries across the UK have dropped by 1.2%. This year gross weekly salaries between April and June were at £727, but in that period a year ago they were what is the equivalent of £736 in today's prices.

However, it is not an equal picture across the UK.

Londoners are riding the cost of living increase significantly more comfortably than elsewhere in the country. This year wages in the capital have risen 14.8% from £826 to £948 in cash terms. That is equivalent a real-terms increase of 5.1% - last year’s £826 would be the equivalent of £902 today due to inflation.

In the North East it is a much bleaker picture, despite take-home pay increasing from £549 to £579. Last year’s £549 would be equivalent to £600 in today’s economy, meaning a 3.4% decrease in earnings.

Nonetheless, five regions in the UK are struggling even more than the North East.

People in Northern Ireland are a staggering 8.3% worse-off in the current economy, with the East Midlands and East of England recording a 6.9% and 5.4% decrease respectively.

As well as London, people in the South West and Scotland are better off with real-term increases of 2.8% and 1%.