80:20 hourly wage ratio by London borough (2020 and 2010)
In 2011, jobs at the 10th percentile of gross weekly pay in London had weekly pay almost 16% lower (in real terms) than in 2008. This compares to a just above 7% fall for those at the 10th percentile in England overall. Pay for these jobs in London has also failed to recover, still being 8.6% lower in real terms than their 2008 level more than a decade later in 2020.
Gross weekly pay for jobs towards the top of the distribution (at the 90th percentile) were not so heavily impacted currently by the 2008 financial crisis. Both in London and the Rest of England there was a decline in gross weekly pay of almost 11% and 7% respectively at their low points between 2014 and 2015. From then on, there has been an increase in weekly pay that is between 3% and 4% below the 2008 level in London and England overall.
The median job in London and England overall has seen the same decline with a lowest point in 2014 and an increase in weekly pay until 2019. However, in 2020 the data shows a sharp decline in pay. Considering the data refers to a specific week in April, this decline may be the first glimpse of declining weekly pay as a result of the coronavirus and the lower earnings levels provided by the furlough scheme.
From a regional perspective, the top and the bottom of the income distribution pay more in London than in any other region of the country. In 2020, the 90th percentile earns £1,375 a week in London compared to just under £898 in the North East. The difference is less stark for low incomes, with jobs at the 10th percentile paying £176 a week on average in London and £148 in the North East.