Pay inequality by London borough

Date 3 November 2017
Date updated 20 April 2020

80:20 hourly wage ratio by London borough (2019 and 2009)

There are many ways of measuring pay inequality. This indicator considers the 80:20 hourly wage ratio, which shows how much greater hourly pay is for those at the 80th percentile of the hourly pay distribution than for those at the 20th percentile. The larger the ratio, the more unequal the hourly pay.

Based on this measure, pay inequality is higher in London than in England. Whilst this was also true a decade ago, the difference between the two was smaller in 2009. In London, the 80:20 pay ratio is 2.74, meaning that hourly wages at the 80th percentile are 2.74 larger than at the 20th percentile. In England, the 80:20 ratio is 2.08. 

Pay inequality fell in both London and England between 2009 and 2019, however, it fell by more in England than in London. In 2009, pay inequality was slightly higher in London, with hourly pay at the 80th percentile 2.78 times more than at the 20th percentile. The 80:20 ratio in England fell from 2.64 in 2009 to 2.08 in 2019.

Amongst the London boroughs, Westminster has the highest level of pay inequality ratio of 3.04 in 2019 and 3.58 in 2009. On the other side of the spectrum, Barking and Dagenham has the lowest pay inequality ratio of 2.22 in 2019 and 2.25 in 2009.