Headline: Report Finds ‘Stark’ North-South Divide in Household Spending Power

Date: 3 September 2026

Tags: UK Economy, Cost of Living, Regional Inequality, Politics

Summary:

• A PwC report found 46% of Britons live where economic growth is not translating into improved living standards.

• Every region in northern England, the Midlands and Wales recorded spending power below the UK average.

• Yorkshire and the Humber was £1,917 below the average annual household disposable income of £23,371.

• Wales was £1,754 below average, while the North East was £1,542 below.

• South East households had £2,154 more annual spending power than average, followed by London at £1,883 above.

• Significant inequalities also exist within wealthier regions, including large differences between neighbouring London areas.

• Scotland and South West England recorded slightly above-average spending power, partly because of lower housing costs and smaller households.

• PwC argued economic growth alone does not guarantee improved household prosperity or living standards.

• The report recommended giving local authorities greater control over revenues generated through local economic growth.

• Prime Minister Andy Burnham has pledged greater devolution and improved economic growth across all parts of the country.

Why this matters: The findings highlight substantial regional inequalities and suggest national economic growth is not benefiting households equally.

What’s next: Regional inequality and devolution are likely to feature prominently in the government’s economic plans, although borrowing costs could constrain October’s Budget.