Disposable income in UK cities rises by as much as 30% in 2024, but London still lags behind
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.
See the research in full here.
Top 5 cities for disposable income
| Ranking | City | Disposable income |
| 1 | Colchester | £1,392 |
| 2 | Milton Keynes | £1,280 |
| 3 | Cambridge | £1,234 |
| 4 | Newcastle upon Tyne | £1,211 |
| 5 | Leeds | £1,196 |
Bottom 5 cities for disposable income
| Ranking | City | Disposable income |
| 1 | Plymouth | £592 |
| 2 | Nottingham | £638 |
| 3 | Preston | £708 |
| 4 | Manchester | £711 |
| 5 | Leicester | £716 |
Commenting on the findings, Louise Bastock, financial wellness expert, 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.”
