LondonNet News Headlines
|London Wages Don't Make Us Richer
- Cost of living in the capital is so high that the rest of the country has as much to spend as we do
LONDONERS might earn more on average than people in the rest of the UK, but we pay out so much more on housing costs, travel and food that our spending power is virtually identical to those stuck in the sticks.
That was the message from an authoritative survey of earning and spending conducted by economic think-tank the Centre for Economics and Business Research.
"The popular image of Londoners all being City-type employees with huge salaries and a wine-bar existence is patently untrue," said Kevin McCauley, joint author of the CEBR report. "Earning may be higher but the costs of living in the capital strip out virtually any net gain."
Londoners do earn around 30 per cent more than other Britons, but see that advantage slip after things like housing costs, at 56 per cent more than other parts of the country, are taken into account. Public sector workers are particularly hard done by, as the slightly higher wages they receive in London are more than wiped out by extra living costs.