Pay inequality by London borough

80:20 hourly wage ratio by London borough (2021 and 2011)

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 hourly pay.

Based on this measure, pay inequality is higher in London than in England. Whilst this was also true in 2011, the gap between the two has grown over the decade. In London, the 80:20 pay ratio is 2.64, meaning that hourly wages at the 80th percentile are 2.64 times larger than at the 20th percentile. In England, the 80:20 ratio is 1.94. 

Amongst the London boroughs where valid data are available, Kingston has the highest level of pay inequality ratio of 3 in 2021. On the other side of the spectrum, Sutton has the lowest pay inequality ratio of 2.32 in 2021, down from 2.44 in 2011. Some of the boroughs with missing data, including Westminster and Kensington and Chelsea, are likely to have high pay inequality given what else is known about their labour markets.