Comparison of average earnings across regions: Where does your salary stand?
In a recent report, it has been revealed that London is the region where wages have grown the most compared to inflation in the past year[1]. The UK job market report for July 2025 shows that all English regions saw weaker salary inflation, but London experienced the fastest increase in salaries among them[1].
According to the report, the average yearly earnings for a Londoner is around £44,356, almost £10,000 more than the national average[1]. This is significant as the average wages excluding bonuses increased by about 5.2% over the year to April 2025, but when adjusted for inflation, the real wage growth was only around 2.1%[2].
The North East is the lowest-earning region in England, with an average weekly wage of £661 and an annual wage of £34,372. Meanwhile, the South East is the second-highest earning region in the UK, with an average weekly wage of £779 and an annual wage of £40,508[1]. The region in the UK where wages have grown the most compared to inflation in the past year is London.
Kevin Fitzgerald, the UK managing director of Employment Hero, finds it encouraging to see momentum building in the North and Midlands. He believes that the uplift in wages will be a welcome sign for workers and SMEs, indicating growing confidence and a more resilient period ahead[3].
However, the high demand to live in London causes prices to be high, particularly for rent and house prices. Some companies give London-based employees a 'London-weighting' to compensate for the high cost of living.
The job and industry play a significant role in determining salary. London is one of the most important cities for finance, attracting many wealthy bankers, financiers, and businesspeople. Workers in the Midlands have enjoyed a 9.4% increase in their average pay packets since last year, while workers in the North East, North West, and Yorkshire have seen their pay packets grow by 11.1% on average over the last 12 months[1].
Scotland has the fourth-highest average earnings in the UK, at £740 per week or £38,480 per year. Northern Ireland has the second-lowest average earnings in the UK, at £671 per week or £34,892 per year[1]. The average salary varies across England, Wales, Scotland, and Northern Ireland.
The East of England is the third-highest earning region in the UK, with an average weekly wage of £764, resulting in an annual wage of £39,728[1]. High demand to live in London causes prices to be high, particularly for rent and house prices.
In conclusion, while wages are generally growing across the UK, London stands out as the area with the highest wage growth relative to inflation in the past year. This trend is consistent with typical UK labor market trends where London usually leads in salary growth due to higher demand for skilled labor, economic activity concentration, and inflation dynamics in the capital[1][2].
[1] UK Job Market Report, July 2025 [2] Office for National Statistics, April 2025 Average Earnings Report [3] Employment Hero Press Release, July 2025
The report reveals that London, being a significant hub for finance, business, and personal finance, offers an average yearly earnings of approximately £44,356, making it the region where wages have grown the most compared to inflation in the past year. Subscribing to a newsletter on personal-finance could provide insights on how to manage this increased income and navigate the high cost of living in London.
