'Shocking' disparity in UK state pension income

News


05 Apr, 2018

'Shocking' disparity in UK state pension income

Recently released HM Revenue and Customs data reveals a “shocking disparity” of UK pension incomes in different regions, according to insurer, Royal London.

The new figures show that the average pensioner living within London’s City has an income that is three times as big as their counterpart in Stoke-on-Trent. There are about 1,000 older people living within the City of London, who receive a total state pension income averaging £37,900 a year.  In Stoke-on-Trent, the mean average was just £12,300.

Analysis by the firm of the HMRC research finds that whilst the top 10 UK boroughs for pensioner income are in London or the South East, the bottom 10 also includes three boroughs in these regions.
For example, Barking and Dagenham is among those at the bottom end of UK pension incomes with just £12,800 on average. Slough and Southampton in the south east are also among those at the bottom of the scale with an average pension income of £13,500 and £13,100, respectively.

In Scotland average state pension incomes ranged from £20,000 in Stirling to £13,900 in North Lanarkshire. In Wales, they ranged from £18,700 in the Vale of Glamorgan down to £13,900 in Caerphilly.

Helen Morrissey of Royal London observes: “When it comes to pension incomes, there is not a simple north/south divide. While all of the top ten local authorities are in London and the South East, three of the lowest income authorities are also in London and the South East.

“In addition, the other areas with the lowest pension incomes are scattered throughout the UK. It is clear that pension incomes across the UK are highly variable, with in some cases very prosperous pensioners living only a few miles down the road from those who are struggling. These figures show a shocking disparity in pension incomes.”

The figures form part of the most recent personal income statistics, covering the period 2015-16, published by HMRC on 28 March this year.