REGIONAL INEQUALITY IN HOUSEHOLD INCOMES IN THE UK: A CLOSER LOOK

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1 REGIONAL INEQUALITY IN HOUSEHOLD INCOMES IN THE UK: A CLOSER LOOK NIESR General Election 0 - Briefing / Andrew Aitken, Monique Ebell and Lea Samek NIESR General Election Briefing number This is part of a series of pre-election briefings funded by the Nuffield Foundation as part of its work to ensure that public debate in the run-up to the General Election is informed by independent and rigorous evidence. For more information go to Date /0/0

2 About the National Institute of Economic and Social Research The National Institute of Economic and Social Research is Britain's longest established independent research institute, founded in. The vision of our founders was to carry out research to improve understanding of the economic and social forces that affect people s lives, and the ways in which policy can bring about change. Seventy-five years later, this remains central to NIESR s ethos. We continue to apply our expertise in both quantitative and qualitative methods and our understanding of economic and social issues to current debates and to influence policy. The Institute is independent of all party political interests. National Institute of Economic and Social Research Dean Trench St London SWP HE T: +44 (0)0 E: enquiries@niesr.ac.uk niesr.ac.uk Registered charity no. 00 This paper was first published in May 0 National Institute of Economic and Social Research 0

3 Regional Inequality in Household Incomes in the UK: A Closer Look Andrew Aitken, Monique Ebell and Lea Samek Key points When measured per head of the population, gross disposable household income (GDHI) has become more unequal across UK regions since 00, when the Conservatives entered government for the first time since. It is not, however, higher than its previous 00 peak, coinciding with the peak of the business cycle. Since the onset of the recovery in 0, regional redistribution in disposable household incomes through the tax and transfer system has increased. Since the crisis, London and other relatively prosperous regions have contributed more to evening out household incomes in the rest of the country. In 0, each London resident contributed,0 more than he or she received from transfers, compared to 0 for each resident of Wales (Table A). Overall, disposable household income before taxes and transfers has become more unequally distributed across UK regions, in particular since the onset of the recovery in 0. An important source of increasing regional inequality in household incomes before taxes and transfers is operating surplus (rent and imputed rent received from dwellings), largely reflecting increasing inequality in home values and rents between London and the rest of the country. While this does reflect increased rental income for owners of London rental properties, it is less obvious that an increase in the value of the housing consumed by Londoners have increased living standards for London owner occupier households or tenants in the private rental sector compared to living standards in the rest of the country. There is also a substantial amount of inequality within regions. Every UK region except for Wales and Northern Ireland has at least one local area with GDHI above the national average. For example, Cheshire East has GDHI per head that is.% higher than the UK average, and which is. times as large as the lowest income local area in the North West (Blackburn with Darwen). Contact details Andrew Aitken (a.aitken@niesr.co.uk) Monique Ebell (m.ebell@niesr.ac.uk ) and Lea Samek (L.samek@niesr.ac.uk ), National Institute of Economic and Social Research, Dean Trench Street, London SWP HE Regional Inequality in Household Incomes in the UK: A Closer Look

4 Regional Inequality in Household Incomes in the UK: A Closer Look

5 How is Household Income measured? Gross Domestic Household Income (GDHI) is a measure of the income individuals in the household sector have available to invest or spend. GDHI measures household incomes after taxes, transfers and pension contributions and after accounting for expenses related to income generated (for example, interest on mortgages and other loans is deducted). To compare areas of different size, GDHI per head of population is used, and is calculated using the entire resident population of an area. ONS regional GDHI data provide an overview of disposable income at regional, sub-regional and local area levels. 4 GDHI is the sum of two main balances - the balance of primary income and the balance of secondary income [Figure ]. Primary income consists of income accumulated through employment as well as assets and equals primary resources less primary uses. Primary resources (household ingoings) include employment income (employee compensation), mixed income from selfemployment, operating surplus and income from financial assets. Operating surplus includes rental income from property owned by households, including the imputed rental income on owneroccupied dwellings (i.e. the rent saved by owning and occupying one s own home). Primary uses (household outgoings) Consist of mortgage interest, as well as the interest on other kinds of loans taken out by the household. The balance of secondary income covers government redistribution of income and equals secondary resources less secondary uses. Secondary resources (ingoings to households) include social benefits and transfers, such as financial gifts, while secondary uses (household outgoings) contain wealth and income taxes as well as social contributions, like employees pension, and other current transfers of payment. Figure : How GDHI is derived GDHI Balance of primary income Balance of secondary income Primary resources less primary uses Secondary resources less secondary uses Source: ONS (0) How evenly is household income distributed across regions? There is a substantial divide between London and the South East, and other parts of the country. Table shows that in 0, disposable income in London was % higher than the national average, The household sector includes individuals living in traditional households as well as in institutions, sole trader enterprises and non-profit institutions serving households, such as charities. GDHI is a gross measure, in that it does not make any deductions for depreciation or wear and tear of houses and other buildings. GDHI is a measure of household income, so it is appropriate to compare regional inequality in household incomes based on the numbers of inhabitants living in households in a given region. 4 Office of National Statistics, Regional Gross Disposable Household Income Reference Tables, published 4 May 0. Regional Inequality in Household Incomes in the UK: A Closer Look

6 and disposable income in the South East was 4% higher than the national average. In contrast, disposable income in Northern Ireland and the North East was % and % below the national average, respectively. Chart and Table A show that these regional differences are persistent over time. While there has been an upward trend in regional inequality in the GDHI household income measure since the recovery from the crisis took hold in 0, there is no clear upward trend over the last 0 years [Chart ]. Current levels of dispersion are similar to those reached at the peak of the last business cycle, in 00 [Table A]. Table : GDHI and income distribution measures per head by NUTS region, 04, UK average=00 Region GDHI per head Balance of primary income Secondary resources (transfers) Secondary uses (taxes) UK North East North West Yorksh. and The Humber East Midlands.... West Midlands..0.. East of England London South East South West Wales Scotland NI.... Dispersion Max-Min Ratio.... Chart : Dispersion of GDHI per head and of the primary balance in the UK, GDHI per head Balance of primary income per head 4 Regional Inequality in Household Incomes in the UK: A Closer Look

7 How much do taxes and transfers equalize regional incomes? Next, we are interested in the role of government taxes and transfers in reducing regional inequalities. To look at this, it is instructive to break GDHI into its component parts income to households before most taxes and transfers (balance on primary income) on the one hand, and most taxes and transfers (balance on secondary income) on the other. The balance on primary income reflects incomes and outgoings arising as a result of the production process or through the ownership of assets, for example, compensation of employees and income from housing and financial assets, offset by property taxes. The balance on secondary income reflects the distribution of money to or from households that is unrelated to productive activity, for example government benefit payments, and taxes on income and wealth. Although the balance on secondary income also includes private transfers, such as gifts, private pension income, and non-life insurance premiums and claims, public taxes and transfers make up nearly % of secondary uses and resources. These data show that each London resident received,0, % less than the national average of,0 in transfer payments in 0, while paying,0 per head, % more than the national average of,00 in taxes. In contrast, each resident of Wales received % more than the national average in transfer payments and contributed % less in taxes and other contributions. As a result, each London resident contributed,0 more than they received, compared to only 0 for each resident of Wales. Table and Chart show that the regional inequality in the primary balance is substantially greater than the inequality after taxes and transfers (total GDHI) throughout the 00-0 period. While the standard deviation of disposable household income before taxes and transfers was 0. in 0, the corresponding figure after taxes and transfers was only 4.. Similarly, the pre-tax/transfer measure for London is. times as high as that in Wales or Northern Ireland, the after-tax/transfer measure for London is only. times as great as that in Northern Ireland and. times as high as that for Wales. This indicates that the redistribution operating through the tax and transfer system does indeed help to even out regional variation in disposable income. Chart also shows increasing regional inequality in the pre-tax/transfer measure of disposable household income (the primary balance) since 00. This inequality has increased markedly since the recovery from the financial crisis began to take hold in 0, and the standard deviation in 0 (0.) has surpassed the value at the peak of the last business cycle of.. Together with the broadly stable pattern of post-tax/transfer measure, this indicates that regional redistribution through the tax and transfer system has actually been increasing somewhat over the last 0 years. Indeed, since the beginning of the financial crisis, the amount of regional redistribution has increased, as the dispersion of the secondary balance has increased (Chart ). This is down to both London s tax contributions (secondary uses) increasing at a faster rate than those of other regions [Table A], and transfers to London residents (secondary resources) increasing at a slower rate [Table A]. Thus, since the crisis, London has contributed more to evening out household incomes in the rest of the country. How unequal is the regional distribution of different income types? Next, we try to uncover the sources for the rising inequality in pre-tax/transfer disposable household incomes displayed in Chart. The main sources of pre-tax household income are employee compensation, rental income (including imputed rents to owner-occupied homes), income from financial assets and mixed income from self-employment. We now discuss how unequally each of Regional Inequality in Household Incomes in the UK: A Closer Look

8 these income sources is distributed across UK regions, and how this inequality has changed over the past decade. Chart : Dispersion of the balance of household taxes and transfers per head in the UK, 00-0 Standard deviation Balance of secondary income per head Employee compensation is more evenly distributed across regions than other components such as mixed income from self-employment, the confusingly named property income (the income from financial assets) and operating surplus (rental income and imputed rent for owner occupiers). Income from housing both actual and imputed is the most unevenly distributed. Operating surplus was. times higher in London than in Wales or Northern Ireland, compared to employee compensation per head that was. times as high in London as in Wales [Table ]. Regional inequality in employee compensation has been relatively stable over this time period. In contrast there is increasing dispersion across the country in the operating surplus (rent and imputed rent received from dwellings), reflecting greater dispersion in property prices. That is, one important source of increasing inequality in household incomes is that Londoners are living in ever more highly valued properties. Rising house prices led London nominal operating surplus to increase by 4% between 00 and 0, nearly three times the growth rate of the rest of the UK of %. As a result, an important source of the increasing inequality in pre-tax/transfer household incomes across UK regions is that the value of the housing consumed by Londoners has risen more quickly than the value of housing consumed by households in other regions. While this does reflect an increase in housing wealth in London, it is less clear that this is related to an increase in living standards of London households relative to other regions, rather than simply reflecting increases in the scarcity of housing in the capital. While households owning London rental property will have benefitted from increased rental income, London owner-occupiers have merely seen the value of Although the max-min ratio is slightly larger for income from financial assets, the overall measure of dispersion, the standard deviation, is higher for income from dwellings. Regional Inequality in Household Incomes in the UK: A Closer Look

9 imputed rents from living in the same home increase. Those in the private rental sector may even have seen disposable income after housing costs fall due to increases in rents. The distribution of income from financial assets (somewhat confusingly named property income ) has also become somewhat less even since 00. While London s income from financial assets was % above the national average in 00, this figure rose to 4% above the national average in 0. This is down to a small rate of growth in the average Londoner s nominal income from financial assets, against an overall decline in nominal terms for the UK overall, likely as a result of the sustained period of low interest rates. By comparison, recent growth in both employee compensation and mixed wage and capital income from self-employment per head have been relatively even across UK regions. Mixed income in London grew by % in nominal terms between 00 and 0, only slightly outpacing the % growth in mixed income in the rest of the UK. There was virtually no difference between nominal growth rates of employee compensation per head between London and the rest of the UK, coming in at.0% and.% respectively. Chart : Regional dispersion (NUTS) in components of GDHI per head, Operating surplus Employees' compensation Mixed income Received property income Regional Inequality in Household Incomes in the UK: A Closer Look

10 Table : Components of income (primary resources) for GDHI per head by NUTS region, 0, UK average=00 Region Operating surplus Mixed income Employee compensation Received property income UK North East North West.... Yorksh. and The Humber East Midlands West Midlands..0.. East of England London South East South West Wales Scotland NI Dispersion Max-Min Ratio....0 Variation in GDHI within regions The spatial variation in disposable income is not solely about London and the South East versus the Rest there is also substantial variation in disposable income within regions. Every UK region except for Wales and Northern Ireland has at least one local area with GDHI above the national average [Table ]. For example, Cheshire East has GDHI per head that is.% higher than the UK average, and which is. times as large as the lowest income local area in the North West (Blackburn with Darwen). Another example can be found in the South East, where the majority of local areas ( out of ) have a GDHI far above the national average. Nonetheless, West Surrey has a GDHI per head that is. times as large as the lowest income local area in the South East, which is Portsmouth. Table : GDHI per head by NUTS region, 0, greater than UK average=00* Region GDHI per head North West. Cheshire West and Chester 0. East Cumbria 0. Cheshire East 0. North East 4. Northumberland 0. Yorkshire and The Humber. North Yorkshire CC 0.0 East Midlands. South Nottinghamshire 0. West Midlands. Warwickshire 0. Regional Inequality in Household Incomes in the UK: A Closer Look

11 Solihull 0. East of England 0. Essex Thames Gateway 0. Central Bedfordshire 0. Cambridgeshire CC 0. Heart of Essex. West Essex 4. Hertfordshire.4 South West 00. Devon CC 00. Bath etc. 04. Wiltshire 0.4 Gloucestershire 0. Dorset CC 0. Scotland. Scottish Borders 00. Perth & Kinross and Stirling 0. East Lothian and Midlothian 0. Shetland Islands 0. Edinburgh, City of. Aberdeen City and Aberdeenshire. *excluding London and the South East because all but areas in London and out of areas in the South East have GDHI per head above the UK average Summary When measured per head of the population, gross disposable household income (GDHI) has become more unequal across UK regions since 00, when the Conservatives entered government for the first time since. However, there is no clear trend of increase in regional inequality in this measure since 00. Underlying this is increasing regional inequality in the disposable household incomes before taxes and transfers, particularly since the onset of the recovery in 0, coupled with a somewhat rising amount of regional redistribution through the tax and transfer system. Breaking pre-tax/transfer income down, we find that employee compensation is more evenly distributed across regions than operating surplus (rent from dwellings and imputed rent of owner occupiers), property income (income from financial assets) and mixed income from self-employment and partnerships. Regional inequality in employee compensation has been relatively stable between 00 and 0. In contrast there is increasing regional inequality dispersion across the country in the operating surplus (rent and imputed rent received from dwellings), largely reflecting increasing inequality in home values and rents between London and the rest of the country. Regional Inequality in Household Incomes in the UK: A Closer Look

12 Annex Tables Table A: GDHI per head by NUTS region, 00-0, UK average=00 Region United Kingdom North East North West Yorksh. and The Humber East Midlands West Midlands East of England London South East South West Wales Scotland Northern Ireland Dispersion Max-Min Ratio Table A: GDHI per head by NUTS region, 00-04, at current prices Region United Kingdom 4,,40,0,,,,4,4,,,0 North East,4,,,44 4,4 4, 4,,4,0,, North West,4,0 4,04 4,40,0,4,4,4,,44, Yorksh Humber,,, 4,44 4, 4,,000,40,,0, East Midlands,,00 4,0 4,,0,,4,,4,, West Midlands,4,0 4,0 4,0 4,,0,0,0,0,, East of England,4,0,440,,4,4,,,,0, London,0,4,04,,4,,0,, 4,, South East,0,,,,,, 0,44 0,0,04,0 South West 4,4,40,0,,4,0,4,0,0,4, Wales,04,4,4 4, 4,4 4, 4,,44,4,,4 Scotland, 4,,4,0,4,00,,,,, Northern Ireland,,0,, 4,0 4,4 4,04 4,4,00,44, 0 Regional Inequality in Household Incomes in the UK: A Closer Look

13 Table A: Operating surplus per head by NUTS region, 00-0, UK average=00 Region United Kingdom North East North West Yorksh Humber East Midlands West Midlands East of England London South East South West Wales Scotland Northern Ireland Dispersion Max-Min Ratio Table A4: Operating surplus per head by NUTS region, 00-0, at current prices Region United Kingdom,4,0,,44,04,0,,4,,440,4 North East,4,,,,4,44,4,4,,, North West,4,,,004,,,0,,00,,4 Yorksh Humber,0,,,,4,4,,,,, East Midlands,4,,0,,0,,,,,, West Midlands,4,,,0,,,,44,4,, East of England,4,4,0,,0,0,0,,,0,4 London,,,0 4,0,,,04,0,4 4, 4,0 South East,,0,0,00,,,0,0,0,, South West,,44,,,4,0,,,0,44, Wales,,,0,,4,,,,,, Scotland,4,0,,4,,,4,4,4,0,0 Northern Ireland,4,,0,,4,4,4,4,,0, Regional Inequality in Household Incomes in the UK: A Closer Look

14 Table A: Mixed Income per head by NUTS region, 00-0, UK average=00 Region United Kingdom North East North West Yorksh Humber East Midlands West Midlands East of England London South East South West Wales Scotland Northern Ireland Dispersion Max-Min Ratio Regional Inequality in Household Incomes in the UK: A Closer Look

15 Table A: Mixed Income per head by NUTS region, 00-0, at current prices Region United Kingdom North East North West Yorksh Humber East Midlands West Midlands East of England London South East South West Wales Scotland Northern Ireland,,4,4,,,,, ,0,,0,,,,,,0,,4,,4,4,, ,,4,0,,,,4, 0,,,4,,,,, 0 4,,,0,0,,,, 4,04,,,,4,4,, 4,,,,,,,,0 0 0,,0,,,,,, 4,0,,,,,4,,4 4 4,04,,,,,,, 4 4 0,4,,,,,4,4,4 0 4,,00,, 0,,4,0,,,,,0,,,0,0,0, 4,,,40,4,,4,44,,,0,44,,,0,00,,, 0,40, 0, Regional Inequality in Household Incomes in the UK: A Closer Look

16 Table A: Employees compensation per head by NUTS region, 00-0, UK average=00 Region United Kingdom North East North West Yorksh Humber East Midlands West Midlands East of England London South East South West Wales Scotland Northern Ireland Dispersion Max-Min Ratio Table A: Employees compensation per head by NUTS region, 00-0, at current prices Region United Kingdom,40,0,,0,,04,,4,0, 4, North East, 0,4 0,44 0, 0, 0,,0,,40,, North West 0,0 0,,040,,0,40,4,4,,,0 Yorksh Humber 0,0 0,,00,0 0,,,,4,4,, East Midlands 0,,0,,,,,,,,40,00 West Midlands 0, 0,,00,04 0,,0,,4,4,004, East of England,,,44,,0,4,04 4,0 4,0 4,,0 London,,4,,,4,0,,,0,4, South East,4, 4, 4, 4,0 4,,0,,,04, South West 0,4,0,4,0,0,,000,,,4,4 Wales,04,44, 0,00, 0, 0,4 0,4 0, 0,,4 Scotland,,,,,4,,0,, 4,0 4,4 Northern Ireland,4,,,, 0, 0, 0,4 0, 0,, 4 Regional Inequality in Household Incomes in the UK: A Closer Look

17 Table A: Received property income per head by NUTS region, 00-0, UK average=00 Region United Kingdom North East North West Yorksh Humber East Midlands West Midlands East of England London South East South West Wales Scotland Northern Ireland Dispersion Max-Min Ratio Regional Inequality in Household Incomes in the UK: A Closer Look

18 Table A0: Received property income per head by NUTS region, 00-0, at current prices Region United Kingdom North East North West Yorksh Humber East Midlands West Midlands East of England London South East South West Wales Scotland Northern Ireland,,4,,,,,,,0,4,,,4,,44,,,0,, 4,0,0,,,,,0, 4,,,4, 4,0 4 4, 4,4,, 0,,0,,4,0 4,,40,, 4, 4,4,,0,,,,0, 4,4,,, 4,,,,,,,,0,,,,,,,4,0,4, 4,,0,,4,4,,4 4,,,4,0,, 0,4, 4,, 0,4, 4,4,,,,0,0,44, 4, 0,,, 4,,4 0,,,0,0 0,0,, 0,,,,0, 0,0,40,00,,4,,,0,0 4, 4,04,,0, 4,0,0,,,4,, Regional Inequality in Household Incomes in the UK: A Closer Look

19 Table A: Balance of primary income per head by NUTS region, 00-0, UK average=00 Region United Kingdom North East North West Yorksh Humber East Midlands West Midlands East of England London South East South West Wales Scotland Northern Ireland Dispersion Max-Min Ratio Table A: Balance of primary income per head by NUTS region, 00-0, at current prices Region United Kingdom,,04,,04,0,,4,,4 0,4,0 North East,4 4,0 4,4 4,4 4,,,,44,,4, North West,0,,,,,4,4,0,,4,4 Yorksh Humber 4,,444,,0,0,0,,,4,0,04 East Midlands,,4,,0,,0,,,4,0, West Midlands,,,,4,,,4,400,,,4 East of England,0,4, 0,044 0,0 0,0 0,0 0,4,,,4 London,,0,,,,44,0,0, 0,4,4 South East 0,,,,4,0,0,,00,0 4, 4, South West,,40,00,4,0,,,4,,4, Wales, 4, 4,, 4,,,,,4,,4 Scotland,0,,4,0,,,4,,0,4 0,0 Northern Ireland, 4,4,,0 4,4,,,4,0,04,40 Regional Inequality in Household Incomes in the UK: A Closer Look

20 Table A: Balance of secondary income per head by NUTS region, 00-0, UK average=00 Region United Kingdom North East North West Yorksh Humber East Midlands West Midlands East of England London South East South West Wales Scotland Northern Ireland Dispersion Table A4: Balance of secondary income per head by NUTS region, 00-0, current prices Region United Kingdom -,4 -,0 -, -, -,4 -, -,0 -, -,4 -,04 -, North East -,4 -,0 -, -, North West -, -,0 -, -, - -, Yorksh Humber -, -, -, -, -,4 -,4 -, ,00 - East Midlands -, -,4 -, -,4 -, -,4 -,4 -, -, -,0 -,0 West Midlands -,4 -,0 -, -, -,0 -, -, ,00 - East of England -,0 -,04 -,4 -, -,0 -,4 -, -, -, -,4 -,4 London -4,4 -,0 -, -, -4,4 -, -, -4, -,0 -,4 -,4 South East -, -,4 -,0 -, -,4 -,0 -,0 -,0 -, -,0 -,4 South West -, -,0 -,4 -, -, -,4 -, Wales - - -, Scotland -,0 -, -,0 -,0 -, -, -,0 -, -,4 -, -, Northern Ireland -, -,4 -, -, Regional Inequality in Household Incomes in the UK: A Closer Look

21 Table A: Secondary resources per head by NUTS region, 00-0, UK average=00 Region United Kingdom North East North West Yorksh Humber East Midlands West Midlands East of England London South East South West Wales Scotland Northern Ireland Dispersion Max-Min Ratio Table A: Secondary resources per head by NUTS region, 00-0, at current prices Region United Kingdom 4,4 4,,0,04,0,4,00,,,,0 North East 4,04 4,,,4,,,,4,4,40, North West 4, 4,,0,,0,0,0,,,,4 Yorksh Humber 4,40 4,0 4,4,0,4,0,,0,,0,0 East Midlands 4, 4, 4,,0,4,0,0,,,0,0 West Midlands 4,4 4, 4,,0,,,,4,40,044, East of England 4,0 4,4,0,,04,4,04,4,,,4 London 4,0 4,4 4,4 4,,00,,,4,4,40, South East 4, 4,,,0,,0,4,,4,0, South West 4,,0,4,,0,40,40,,,, Wales 4,,,4,,0,40,,0,4,, Scotland 4,4 4,0,,0,,04,0,,4,4,4 Northern Ireland 4,0 4,4 4,,,4,04,,,,,0 Regional Inequality in Household Incomes in the UK: A Closer Look

22 Table A: Secondary uses per head by NUTS region, 00-0, UK average=00 Region United Kingdom North East North West Yorksh Humber East Midlands West Midlands East of England London South East South West Wales Scotland Northern Ireland Dispersion Max-Min Ratio Table A: Secondary uses per head by NUTS region, 00-04, at current prices Region United Kingdom,0,,0,,0,0,0,,4,0,0 North East,,,,,44,0,,,,,0 North West,,00,,4,,,00,,,00, Yorksh Humber,0,,,,,0,004,,,0,0 East Midlands,,,44,40,0,4,0,4,40,0, West Midlands,,,0,,,04,0,4,,4,0 East of England,,,,,4,,,,,0,4 London,0,4 0,4 0,,4 0,4 0, 0,44 0,4,, South East,0,,00,,,,,4,,,0 South West,,0,4,4,,,,04,,0,4 Wales,,,4,40,,0,4,4,,, Scotland,40,0,,,4,,00,,04,,4 Northern Ireland,,0,,44,,,,,,0,4 0 Regional Inequality in Household Incomes in the UK: A Closer Look

23 Table A: GDHI and income distribution measures per head by NUTS region, 0, at current prices Region GDHI per head Balance of primary income Balance of secondary income Secondary resources Secondary uses United Kingdom,0,0 -,,0,0 North East,, -4,,0 North West,,4 -,4, Yorksh Humber,,04 -,0,0 East Midlands,, -,0,0, West Midlands,,4 -,,0 East of England,,4 -,4,4,4 London,,4 -,4,, South East,0 4, -,4,,0 South West,, -,,4 Wales,4,4 -,, Scotland, 0,0 -,,4,4 N Ireland,,40 -,0,4 Regional Inequality in Household Incomes in the UK: A Closer Look