Where does your town rank in disposable income growth - and how can you boost your own?

Did you know that where you live can influence how quickly, or slowly, your disposable income grows?

Disposable income is the money you have left after income tax has been deducted, the cash you actually have available to spend or save.

According to a report by the think tank Centre for Cities, many UK towns and cities have seen disposable incomes stagnate since the aftermath of the 2008 financial crisis.

Despite periods of economic growth, living standards in many places have failed to keep pace.

The report reveals a wide gap in disposable income growth across the UK’s 63 largest towns and cities, with some areas pulling ahead while others fall behind.

The areas where disposable income has grown the most

Between 2013 and 2023, Blackburn in Lancashire topped the rankings, with average disposable income rising by 11.7%.

It was followed by:

• Mansfield, Nottinghamshire, up 8.3%
• Brighton, East Sussex, up 8.1%

Other strong performers included Worthing, London, Barnsley, Warrington, Newport, Luton, Wakefield and Bristol.

These places tend to have expanding local economies focused on higher-skilled, productive sectors, particularly tradeable industries such as software, marketing and finance, which sell services beyond the local area.

The report suggests income growth could be spread more evenly by:

• encouraging more people into work
• improving access to skills and training
• investing in better transport links

The areas falling behind

At the other end of the scale, Aberdeen saw disposable income fall by 18.8% over the same period. This decline is largely linked to the city’s reliance on the North Sea oil industry and the impact of falling oil and gas prices.

The report estimates that someone living in Aberdeen would have been £34,700 better off over the decade if income growth had matched that of the UK’s top-performing cities.

Smaller declines of around 3% were recorded in Cambridge, Exeter and Dundee.

In total, 15 cities saw disposable incomes fall, and across the UK as a whole, average growth was just 2.4%.

10 smart ways to boost your personal income (or keep more of it)

If your local economy isn’t working in your favour, there are still practical steps you can take to improve your own financial position.

1. Ask for a pay rise

   Go in prepared with evidence of your performance and market salary data.

2. Change jobs

   Switching roles is often the fastest way to secure a meaningful pay increase.

3. Start a side hustle

   Freelancing, tutoring or selling services online can bring in reliable extra income.

4. Monetise a hobby

   Crafts, baking, photography or art can all be turned into income online or at local markets.

5. Sell unused items

   Declutter and sell clothes, gadgets or furniture on platforms like Vinted or Facebook Marketplace.

6. Rent out a spare room

   You can earn up to £7,500 tax-free under the Rent a Room scheme.

7. Use cashback and rewards

   Cashback sites and reward credit cards can quietly save you hundreds each year.

8. Cut recurring costs

   Cancel unused subscriptions and negotiate better deals on broadband, mobile and energy bills.

9. Cook more at home

   Reducing takeaways and planning meals can significantly cut monthly spending.

10. Set (and stick to) a budget

    Knowing where your money goes is the foundation of earning more and saving better.

We’ve got more practical tips on boosting your disposable income.

Understanding where your money goes is the first step to saving more. Use a budget tracker or our free budget calculator to get started.