UK's Cost of Living Crisis: Geographic Disparities in Income and Deprivation Revealed
New research has mapped the areas of the United Kingdom where the cost of living crisis is hitting households hardest, revealing stark geographic disparities in income deprivation and growth. The analysis comes as economists predict a potential pause in the rising cost of living this December, though millions continue to struggle with unmanageable financial pressures.
Most Deprived Cities Identified
According to statistics from the Office for National Statistics analysed by the Centre for Cities research group, Blackburn has been identified as the UK city facing the highest level of income deprivation. This is followed closely by Hull, Birmingham and Bradford in terms of the severity of financial hardship experienced by residents.
These locations represent the places with the highest share of their neighbourhoods being ranked among the 20 most deprived areas according to ONS statistics. The research methodology examined which urban areas contained the greatest concentration of communities experiencing severe economic disadvantage.
Cities With Least Deprivation
In contrast, the cities showing the least income deprivation were Aldershot, Cambridge, Reading and Exeter. This reveals a clear geographic pattern within the data, where certain regions consistently demonstrate lower rates of economic hardship while others face persistent challenges.
Income Growth Disparities Over Decade
Examining income trends over the decade to 2025, ONS data shows that average incomes increased by approximately 8 per cent nationally. However, this growth was distributed unevenly across different regions and cities.
Cambridge experienced the highest rise in weekly cash terms, with residents seeing an average increase of £123.22. This was followed by Warrington (£119.07), Bristol (£111.01) and Stoke (£100.71) in terms of absolute income growth.
Conversely, Crawley suffered the biggest loss in real-terms income growth, with average incomes falling by £59.85. Other cities experiencing significant declines included Derby (−£56.92), Gloucester (−£55.41), and Exeter (−£53.32), despite Exeter's relatively low deprivation ranking.
Government Focus on Cost of Living
The Centre for Cities has commented that Prime Minister Sir Keir Starmer's renewed focus on the cost of living crisis in the new year is "understandable" given the scale of the challenge. However, the research group emphasizes that any effective response must be underpinned by stronger, more sustainable economic growth across all regions.
Andrew Carter, chief executive of Centre for Cities, stated: "It is understandable that the Government has shifted its emphasis onto the cost of living in recent weeks, but ultimately it is stronger economic growth that raises household incomes. Without growth, cost-of-living fixes can only ever be temporary."
Broader Context of Economic Challenges
The analysis comes against a backdrop of continuing hardship for millions across Britain. A recent report from the Joseph Rowntree Foundation found that 14.2 million people continue to live in poverty, with a record 6.8 million experiencing the deepest form of deprivation.
Carter further contextualized the economic challenges: "Nationally, the last decade has delivered the same amount of growth in living standards as we typically experienced in a single year prior to 2008."
He added: "As the Prime Minister has said, 2026 needs to be the year that 'politics shows it can help again'. The test, at the end of this year, will be whether we are seeing more jobs, higher wages, and stronger local growth in more places across the country."
The research highlights the complex geographic dimensions of the UK's ongoing cost of living crisis, demonstrating how different cities and regions have experienced vastly different economic trajectories over the past decade. As policymakers consider responses, the data suggests that targeted approaches addressing specific regional challenges may be necessary alongside broader economic strategies.
