£21k pay gap between earners revealed

Concern over pay
Concern over pay

Top earners earn an average £20,500 more per year than their lower-paid colleagues across North Lincolnshire, it has been revealed.  

Campaigners are demanding a change of culture in the business world, after figures from the ONS revealed "vast economic divides" across the UK.

In North Lincolnshire, the average weekly pay packet for the top 20 per cent of earners among full-time workers in 2018 was 2.2 times higher than for the bottom 20 per cent.

The top earners were paid an average £728 per week - the equivalent of £37,860 per year.

For lower earners, average pay packet was just £334 per week, or £17,360 per year.

Luke Hildyard, director of independent think tank the High Pay Centre, said: "The UK is one of the most unequal developed countries in the world with some of both the richest and poorest regions in Western Europe.

"Most people are deeply uncomfortable with such wide divisions and rightly believe that we should be doing better.

"Corporate governance reforms, stronger trade union representation in low-paid, precarious industries and a change in business culture would all go a long way to building a fairer economy."

The average full-time employee in North Lincolnshire works for 38.6 hours per week. With a median salary of £25,345 per year, this means the average worker gets paid £12.63 per hour.

But the average hourly wage for the bottom 20 per cent of workers is just £8.65, compared to £18.86 for those at the top end of the scale.

The figures refer to basic pay only, and do not include bonuses or overtime.

Frances O'Grady, general secretary of the Trade Union Congress, called for the minimum wage to be increased to £10 an hour "as soon as possible".

She added that millions of people are stuck in low-paid jobs with little chance of progression, which is bad, both for workers and national productivity.

“Many towns have been held back by lack of investment, leading to a shortage of solid jobs with good pay," she said. "They need a fair chance to rebuild their local economy with government support through a new National Investment Bank."

The gap between the highest and lowest earners in North Lincolnshire is slightly smaller than the national average. Across the UK, the average annual salary for the highest 20 per cent of earners is 2.3 times higher than for lower earners.

Top earners were paid £43,129 in 2018, compared to £18,970 for the lower-paid - a gap of £24,160.