London has been a city of mixed fortunes for centuries, with residents from all walks of life, from the very rich to the very poor. The differences in income are much greater in London than in the rest of the UK, particularly after the high costs of housing in the capital are taken into account.
The income (after basic housing costs) of the bottom ten per cent of London households (adjusted to take account of differences in numbers and ages of residents) is less two thirds of that for the rest of the UK, while the income of the top ten per cent of London households is around 30 per cent higher than among the top portion of residents outside the capital.
This means that in London, the richest ten per cent have more than ten times the income of the lowest income households in London, with this ratio increasing again, having reduced slightly towards the end of the last recession. In contrast, for the rest of the UK, this measure of income inequality shows the highest income tenth of households have just over five times the income of the lowest income tenth, increasing just marginally in the latest figures.