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Londoners are STILL the Poorest Workers in Britain

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UK professionals working in the city of London are officially the poorest workers in Britain, according to research conducted by the UK’s largest job site, CV-Library. This is despite the fact that Londoners continue to earn the highest average salary in the UK.

Based on new roles advertised in Q3 2016, the job site revealed that the average annual salary in London is £37,408; just 13.2% greater than the national average of £32,596 per year. However, further research revealed that premium costs in the capital drastically outweigh the slightly higher-than-average salaries, meaning Londoners have the least disposable income in the country.

Comparing the same basic living costs against average salaries in 16 of the UK’s key cities revealed how employees in Scotland and North England remain the richest in the UK:

Richest to Poorest UK Workers*:

Average Monthly Salary Basic Monthly Costs Remaining Income
Glasgow £2,157.56 £927.60 £1,230
Aberdeen £2,088.26 £926.34 £1,162
Hull £1,927.44 £781.80 £1,146
Sheffield £1,930.95 £924.50 £1,135
Leeds £2,023.55 £928.66 £1,095
Birmingham £2,059.53 £967.48 £1,092
Liverpool £1,924.15 £855.75 £1,068
Southampton £2,031.76 £1,027.75 £1,004
Manchester £1,988.58 £1,024.00 £965
Portsmouth £1,933.96 £993.40 £941
Cardiff £1,931.58 £993.50 £938
Bristol £2,067.24 £1,177.62 £890
Exeter £1,921.49 £1,050.49 £871
Edinburgh £1,973.00 £1,246.75 £726
Brighton £1,902.05 £1,382.42 £520
London £2,383.72 £2,318.60 £65

*Basic monthly costs include rent (small, one-bed flat, located close to the city centre), relevant council tax, a local monthly travel card, basic utility bills and groceries.

The results suggest that a worker in London could end up in serious debt if they want the same living standards as anyone else in the country, despite holding senior, well-paid jobs.

Lee Biggins, founder and managing director of CV-Library, explains:

“Many workers are attracted to the capital as it is home to some major organisations, offering exciting job prospects. However, the high cost of living in London means that the vast majority of workers are left high and dry after pay day, placing many in a compromising position. There is a growing concern across the nation surrounding property costs, with current house prices in the capital reinforcing how unobtainable it is for working Londoners to get on the property ladder. Eventually, this could result in people retreating from London, in search of areas which offer a better state of living.”

To delve even further, when comparing the purchase of a one-bed flat in London, to a similar one-bed flat in Glasgow, the difference is significant. Whilst the average cost of a one-bed flat in Glasgow is £76,286, the same flat in London would be £550,764; six times more expensive (622%). However, when comparing average salaries in both cities (£37,408 in London and £33,417 in Glasgow), Londoners only earn 12% more than workers in Glasgow.

In real terms, a professional in Glasgow would spend 16.1% of their salary on a mortgage for a one bed property and still have £1,810 left in their pocket to cover bills and other living expenses. A Londoner would need 105.2% of their salary to pay the mortgage alone, leaving them in debt before they have even considered how to cover bills and other basic costs.

Biggins concludes:

“Wages and living expenses in London are not relative to the rest of the UK, making Londoners the poorest workers in Britain. While the government is taking steps to ensure that Londoners can afford to live, many job hunters and businesses are continuing to scrape the barrel in order to get by.”

For further information on CV-Library, visit www.cv-library.co.uk

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CV-Library is one of the UK’s largest online job sites, with the UK’s biggest database of over 12m CVs. The company was founded in 2000 as a response to Lee’s identification of a market niche. As a young carpet fitter at the time struggling to find work, Lee saw a need for an easy-to-use job board benefiting both job hunters and recruiters. With a £9k loan and help from a web developer, the CV-Library website was built. Lee’s raw passion and hands-on marketing strategies lifted the business off the ground and it is this that continues to push his company to new heights.

The business is now one of the fastest growing websites in the country. The team is expanding rapidly, now employing over 200 staff. It has also launched sister website, Resume Library, in the US, where the company is set to expand and take the brand global over the coming years. Lee puts the reason for his success down to working incredibly hard, loving what he does and a strong desire to make the business the best it can be.

Lee has received over 50 awards and accolades to date and was last year recognised as Entrepreneur of the Year. In April 2015 CV-Library was also ranked as number 49 in the Sunday Times Profit Track 100.

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