Net income inequality before housing costs (1996/97 - 2022/23)
Last updated: June 2024
Next estimated update: June 2025
What does this indicator show?
This indicator shows one way of measuring income inequality, the 90:10 net income ratio. This compares the net income (before housing costs) of those at the 90th net income percentile (who earn more than 90% of other Londoners) with those at the 10th net income percentile (who earn less than 90% of other Londoners). By comparing these two figures, we get a sense of the level of inequality between those on higher and lower incomes.
A higher figure means that inequality is higher.
What does it tell us?
In 2022/23 those in the 90th net income percentile in London took home 9 times more than those in the 10th net income percentile (a 90:10 net income ratio of 9.3). In the rest of England the 90:10 net income ratio is 4.9.
Net income inequality has risen gradually in London over the last 20 years, with a small drop in the last two years (2021/22 and 2022/23). In contrast, it has been relatively stable in England overall.
This means that the gap between the rich and poor in London and the rest of England is much larger today than it was two decades ago. In 1996/97, the gap between London’s 90:10 net income ratio and that of the rest of England was 2.5, today it is 4.9.
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