Proportion of total net and gross income before housing costs held in each decile (2022/23)
This indicator was last updated in June 2024. It is now archived and will no longer be updated. Explore London’s Poverty Profile to view our regularly updated indicators. If you have any questions, get in touch.
What does this indicator show?
This indicator looks at how London’s total income is spread across households. It shows the proportion of the city’s total income that is taken home by those in each of London’s income deciles.
We can see how London’s income is distributed both for gross income (before tax) and net income (after tax).
What does it tell us?
The bottom five income deciles - or, put another way, the 50% of Londoners on the lowest incomes - take home less than a quarter (23.8%) of London’s total net income before housing costs. The 10% on the highest earnings alone take home 32.3% of total net income, more than the six lowest income deciles - 60% of the city’s earners - combined (32.2%).
The impact of the tax system
The impact of redistribution through the tax and benefit system can also be seen in this chart. The top decile holds a lower proportion of total net income (32.3%) i.e. after tax, than it does of gross income (36.5%) i.e. before tax. In contrast, the bottom decile of London households holds 1.5% of total gross income but 1.9% of total net income. This reflects the higher tax rates paid on incomes in the 9th and 10th deciles, and at the other end the effect of the personal tax allowance threshold which means the income earned up to a given point is not taxed at all
How does this compare to the rest of England?
Compared to London, the top decile in the rest of England holds a lower proportion of total net (27.6% compared to 32.3%) and gross income (31.4% compared to 36.5%). Those in the bottom decile in the rest of England, in both total net and gross income, hold a larger proportion than in London (2.6% compared to 1.9% and 2.4% compared to 1.5%, respectively). This shows the higher levels of income inequality in London than the rest of the country.
Want to know more?
If you want to explore this data in more depth, check the 'data source and notes' button on the above charts. This will tell you where the data comes from, where you may be able to dig deeper.