• The average monthly disposable income for Brits in 2024 was £939, a 4% increase from 2023.
• Plymouth residents have the least disposable income, at just £591 a month, 37% less than the UK average.
• Meanwhile, those in Colchester have the most disposable income at £1,392 a month, 48% more than the UK average.
• Londoners have seen almost a 13% increase in disposable income since 2023, gaining £1,050 a year.

23 July, 2024, LONDON –

New research by personal finance comparison site Finder shows that UK cities saw an average 4% increase over the last year in disposable income, with some seeing as much as a 30% gain.

The analysis compared the average salaries of each city against rent costs and other standard monthly outgoings for 41 UK cities to find who has the most, and least, disposable income.

Those living in Plymouth have an average of just £591 to spend (or save) per month after tax, bills and general (essential) outings such as travel and food. This is 37% below the national average of £942 per month.

Salaries in Plymouth were among some of the lowest in the cities analysed, but they still had higher living costs than 25 other cities.

Meanwhile, Colchester locals can enjoy disposable income of almost £1,400 a month, 48% higher than the national average. This is almost two and a half times what those in Plymouth have leftover every month.

Overall, the national average has increased by 4% since 2023. The greatest increase was felt by those in Canterbury, who had a disposable income boost of 30% since 2023, rising from £1,258 to £1,392. This welcome financial boost could be attributed to several factors, including earnings growth, easing inflation, the uplift in the National Living Wage, and tax policy changes. However, those in Doncaster felt the bite of increased living costs as their disposable income decreased by 20%, from £1,193 to just £956.

Despite London’s increase, the city still lags behind

Londoners have enjoyed a nearly 13% boost in their disposable income (or an extra £1,050 in their pockets every year), but the capital still ranks 32nd out of 41 cities for overall spending power. This is because it’s far and away the leader in living costs, with monthly essential expenses costing £684 more per month than the next most expensive city, Bath.

Salaries in London remain the highest of the UK cities, but high rent prices and daily living costs have made it far more expensive to live in the capital. The average Londoner is shelling out £2,320 a month on rent and other essentials.

To see the research in full visit: https://www.finder.com/uk/banking/disposable-income-around-the-uk

Top 5 cities for disposable income

Bottom 5 cities for disposable income

Commenting on the findings, Louise Bastock, financial wellness expert at finder.com, said:

“If you’re wondering how to stretch your pounds a bit further, you could try a budgeting app or use your bank’s digital tools to keep tabs on your spending. Consider taking advantage of current account switcher offers for a quick cash boost. And ensure your savings are working hard for you in a savings account that balances a high interest rate with your desired accessibility to your cash. In today’s economy, every bit counts.”

Methodology:

The study looked at 41 cities in the UK that had accurate data on salaries and living costs. For rent, we found the total price per room of a 3-room apartment to get an approximate figure for the rent a single person could expect to pay. To determine disposable income for each city, we calculated average monthly post-tax income using ONS data. We adjusted 2023 regional income figures upward by 6% to reflect wage growth as of April 2024, as reported by the ONS.Then, the monthly single person’s rent and living costs were subtracted from the average monthly income after tax. For our research, disposable income refers to the money left over after paying all essential costs, including taxes, rent, bills and living costs.

Data sources used: Numbeo and ONS.