North East salary rises among the smallest in the UK, figures show

The growth of average earnings in Sunderland, County Durham and Hartlepool is among the smallest in Britain, with the increase over the last eight years well below half of that enjoyed in much of London.

According to research by employment analysts Digital ID, Sunderland residents have had some of the smallest salary growths in the UK, with wages increasing just 21% since 2014, while the UK average is 28.1%.

The city’s average monthly salary in 2014 was £1,816 rising to £2,199 by December 2021. This places Sunderland 172nd of the 185 areas in the study.

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In Hartlepool and Stockton the rise is 20% to £2,352. In County Durham it’s 20.9% to £2,268 placing them 176th and 174th respectively.

Salaries in this area are rising far slower than in London.

Aberdeen had the smallest wage growth, increasing just 5.2%. Eight of the bottom 15 were in Scotland.

This compares with Hackney and Newham in London in first place, with salaries there increasing 51% to £3,164.

The rise in Westminster was 38%, but this gives an average monthly salary there of £8,589 up from £6,223 in 2014.

All of the top 14 rises were in or around London, with Cambridge the highest rising area outside the capital.

Pay rises in Hackney and Newham dwarf those of the North East.

Digital ID said: “The UK is facing a serious cost-of-living crisis, from soaring inflation to unmanageable energy bills, and this data reveals just how hard it is for many areas of the country to swallow the costs.

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“The stagnant wages in areas such as Sunderland, South Teesside, Durham and Derby show just how much the decision to increase National Insurance by 1.25 percentage points in April.

"This actually translates to an average 10% increase in National Insurance, which will affect workers who are just trying to provide for their families.

“With the National Insurance hike affecting employers, too, it is unlikely that many companies will be offering pay rises and, unless something substantial is done to ease the cost of living crisis, we will see many more families pushed into poverty.”

The average North East salary is only around a quarter of the £8,589 per month in Westminster.
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Earlier this month the Government unveiled its “levelling up” plan that they say “will transform the UK by spreading opportunity and prosperity to all parts of it.”

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