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Hired help: Interactive map shows the difference in wages between locals and commuters – but how does YOUR area fare?


 People living in communities across Britain can earn almost £200 a week less than those who commute to those same areas, new data has shown. 

In Derby South, which is represented by Dame Margaret Beckett, residents earn on average £562 a week – just three quarters of that made by people who commute into the area. 

On average, residents earn £193-a-week less than the £755 earned by people who work but live outside the area. 

On the other extreme, people living in Kensington and Chelsea earn on average £283 a week more than those who commute into the area. 

According to new data released by the Office of National Statistics, those living in the constituency earn on average £934 a week – or £48,568 a year, compared with £651 a week for those who work in the area but live elsewhere – a difference of £14,986 a year. 

In the Cities of London and Westminster, residents earn on average £875 which is just 90 per cent of the £973 earned by commuters. 

Members of Parliament are among those who earn significantly more than residents of the constituency with a basic salary of £1,665 a week. 

According to the ONS who compiled the data, the number of people employed has slowed while those who are classed as ‘economically inactive’ have increased. 

Economically inactive includes the unemployed, people on pensions, students and those who choose not to work. 

Workers commuting to Derby South constituency earn on average £193-a-week more than those who live in the area, according to figures released by the Office of National Statistics

Workers commuting to Derby South constituency earn on average £193-a-week more than those who live in the area, according to figures released by the Office of National Statistics

In Westminster, commuters earn on average £973-a-week compared with the £875 earned by residents. However, in Parliament, pictured, MPs earn more than £1,600 a week.

In Westminster, commuters earn on average £973-a-week compared with the £875 earned by residents. However, in Parliament, pictured, MPs earn more than £1,600 a week. 

There have also been an increase in the number of people who report themselves as being ‘long-term sick’. 

Between November and December 2023, the number of employees on payrolls increased by 31,000 people. Over a twelve-month period the figure jumped by 410,000 people. 

The ONS said there are about 30.4 million employees in Britain. 

About one in five of people aged 16 to 64 are economically inactive, according to the data. 

However, despite the rise in the number of people in work, the number of people unemployed increased by 61,200 over the past year reaching a total of 1.579 million people.  

According to a spokesperson:  ‘Nominal earnings growth remains strong, although it has eased a little in recent periods. Annual growth in total earnings (including bonuses) in Great Britain was 5.8 per cent in October to December 2023, and annual growth in employees’ average regular earnings (excluding bonuses) was 6.2 per cent.

‘Real pay growth continues as inflation continues to fall. Annual growth in real terms (adjusted for inflation using the Consumer Prices Index including owner occupiers’ housing costs (CPIH)) for total pay rose on the year by 1.4 per cent in October to December 2023, and for regular pay rose on the year by 1.8 per cent.’

Despite an increase in the number of people working, unemployment also increased by 61,200 over the past 12 months as Prime Minister Rishi Sunak, pictured, faces difficult questions about the country's economic outlook

Despite an increase in the number of people working, unemployment also increased by 61,200 over the past 12 months as Prime Minister Rishi Sunak, pictured, faces difficult questions about the country’s economic outlook

One of the people responsible for setting the Bank of England’s interest rate has warned the danger posed by inflation in the UK is greater than that faced by Europe and the United States. 

Megan Greene warned that the UK had faced a ‘double whammy’ in dealing with both a tight jobs market and a trade shock.

She said that the supply side of the market in the UK had been left weaker than in the US in recent years because of Brexit and the pandemic. 

Normally this would have meant the UK faced higher inflation as a result, but at the same time demand was weaker than in the US, which had evened things out.

‘The UK has faced the double whammy of a terms-of-trade shock even larger and longer lasting than in the EU, alongside a tight labour market like in the US,’ Ms Greene said.

‘Inflation persistence is therefore a greater threat here.’

Ms Greene added: ‘Shocks from Brexit and the pandemic have left UK supply much weaker than in the US in recent years and over the outlook period.

‘All else equal, this would mean inflationary pressures are greater in the UK. But UK demand has been weaker than in the US as well.’

Ms Greene, who is a member of the interest rate-setting Monetary Policy Committee, said that rates were currently ‘restrictive’ in the UK.

She said that she was not yet ready to start voting for interest rates to be cut.

‘In light of the persistence of UK wage and services price pressures, which stand out in international comparisons, I think policy will need to remain restrictive for some time in order for inflation to sustainably return to target,’ she said.

‘Recent signs of persistence starting to ease are encouraging, and I judge that current policy is sufficiently restrictive to bring inflation back to target in the medium-term.

‘I would need to see further evidence that inflation persistence is less embedded than previously feared before I would consider voting to loosen policy.’



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