Huge gap opens up between top earners and low-paid across UK

A study by the TUC said wage inequality had risen by 4.5 per cent across the UK since 2000, and by 8.5 per cent in London.

An analysis of official figures showed that between 2000 and 2013 the pay gap between the top 10 per cent and the bottom 10 per cent of earners in London rose by 14 per cent.

A similar picture emerged in the South East and the Midlands.

In London the top 10 per cent average £82,000 a year, followed by those in the South East who are on £57,000 and the East of England where they earn about £52,000.

In contrast, an annual salary of about £46,000 puts workers in the top 10 per cent of earners in Yorkshire and the Humber and £45,000 makes the top 10 per cent in the North East.

Top earners in Wales are on about £43,000 a year, nearly half of what those in London are taking home.

TUC general secretary Frances O’Grady said: “This new analysis shows how wage inequality has soared in parts of the UK over the last decade.

“This growing pay gap is bad news for our economy and bad news for living standards.

“The picture is particularly bleak in London and the South East, but in areas like the Midlands, the North West and the East of England, a significant gulf has developed between top and bottom earners.

“Unless this trend stops now and more high-skilled jobs with decent pay are created, this worrying pattern is likely to become even more entrenched.

“Everyone must benefit from the recovery, not just those at the top.”

Ms O’Grady added: “The TUC wants to see a greater commitment to pay the living wage from both government and employers, a crackdown on excessive executive pay, and modern wages councils which could set higher minimum wages where employers can afford to pay more.”

The TUC is holding a Fair Pay Fortnight from today as part of its campaign to raise awareness about low wages and what it says is a living standards crisis.