The top 10% of earners in Birmingham take home nearly seven times as much as the lowest-paid 10%, new analysis has revealed.

The latest figures from the Office for National Statistics have shown that the lowest tenth of earners in our city are paid just £7,335 a year, on average.

That is a gross figure - in other words, before any tax has been taken.

In comparison, the highest earners in Birmingham take home £48,428 annually - a difference of £41,093 a year.

The situation in our city reflects a national trend.

Across the UK, the lowest-paid 10% of workers earn £7,740 annually, while the highest-paid 10% earn £52,801 - nearly seven times as much, and a gulf of £45,061.

 

Part of the problem is that low-paid workers are far less likely to be in secure, full-time and permanent work than high paid workers.

A comparison of average annual pay with hourly pay suggests that the highest-paid 10% of workers in Birmingham are working nearly twice as many hours a year than the lowest-paid 10%.

 

However, even when you look at average hourly pay, the gap between the highest and lowest earners in the city is still huge.

On average, the lowest-earners in Birmingham are taking home £7.83 an hour, while the highest-earners are paid more than three times that at
£26.22 an hour.

 

Dr Wanda Wyporska, Executive Director, The Equality Trust, said: "These figures show the reality of the high level of inequality we see in the UK.

“At the same time as many people can't make ends meet or find enough work to get by, we see the richest 1,000 people increase their wealth by £274 billion over the past five years.

“As we know, in countries such as the UK, with a high level of inequality, we see higher levels of mental ill health, physical ill health, drug addiction and imprisonment.

“It's not just about individual income, inequality is bad for us all."