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Inflation adjusted pay gaps

Data on how real pay has changed in the North East and England

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Inflation adjusted earnings (Full-time Workers)

Earnings and inflation values included in this report are taken from the April of each year. The real earning disparities between the North East and England have increased since 2014, from £44 per week to £59. The highest difference was in 2021 when it peaked at £66.

The second chart shows the variation between 2014 and 2023 in real earnings by decile band in the North East. The lower earners have seen an above average increase in earnings and the upper bands have seen a decrease in real earnings.  Many lower earners will have seen earnings increase in line with the national living wage which helps to at least partially offset inflationary effects. Median real earnings have fallen by £1.

The third chart shows that the higher earners in the North East and across England have seen a greater real earning reduction than the lower earning bands. The bottom 10% of earners in the North East mirror the national values and show a steady increase over time.

Whilst the lower 10% of earners in both the North East and England earn roughly the same weekly amount, the top earners in the North East earn considerably less than across England. It should be noted that this relates to paid earnings and does not include any forms of Government support (etc. Universal Credit, Employment & Support Allowance).

The fourth chart shows annual income quartile variation between 2014 and 2023. The trends here reflect the third graph, but show earners closer to the average rather than at the extremes.

The fifth chart shows that across the last nine years the differences in earnings between the North East and England has increased.