Workers in Wales earn significantly less on average compared to those in London, according to a recent report. The study revealed that the average worker in London earns in just eight months what the average worker in Wales earns over the course of a year. The report highlights a considerable pay gap, with average salaries in London standing at £49,500, which is £17,300 higher than those in Wales.
Out of the 63 largest towns and cities evaluated, the majority with above-average salaries in the UK are located in the southeast of England. In contrast, only seven locations outside of this region, none of which are in Wales, boast salaries surpassing the UK average. The Centre for Cities, responsible for compiling the report, points out that the wage disparity is primarily due to certain cities having more cutting-edge private sector jobs and businesses compared to others.
Cities like London and Cambridge, which have higher pay scales, host more than double the number of cutting-edge firms and three times the amount of advanced jobs, particularly in industries such as biotechnology and artificial intelligence, compared to lower-paying regions like Swansea, one of the UK’s least-paid cities. The report, titled Cities Outlook 2025, reveals that the UK’s average annual salary is £37,206.
In specific Welsh cities, the average workplace salary in Cardiff is £35,225, while in Newport it is £33,455, and in Swansea, it stands at £31,573. Cardiff ranks 11th out of 63 in terms of jobs in private knowledge-intensive services, whereas Newport ranks 34th and Swansea 57th. Additionally, Cardiff is placed 25th regarding housing affordability, with Newport and Swansea trailing behind at 39th and 45th, respectively.
The Chief Executive of the Centre for Cities, Andrew Carter, stressed the necessity for substantial changes to address the country’s economic growth disparities. Carter highlighted the importance of bold and urgent actions, particularly in relation to the government’s industrial strategy and planning reforms, to help increase wages across all regions by the end of the parliamentary term.
The report underscores the significance of implementing proposed adjustments to the national planning system to streamline housing delivery and reduce housing costs, particularly in cities with high wages. Half of the top 10 places with the highest average wages also rank among the top 10 least affordable housing markets. The UK Government has been approached for comments on these findings.
The report serves as a call to action for policymakers and local authorities to focus on boosting economic growth in all parts of the country to ensure higher wages for workers nationwide. By addressing the underlying issues contributing to the wage gap between regions like Wales and London, the government aims to create a more equitable and prosperous employment landscape for all citizens across the UK.