On average, pensioners are paid over £15k less than employed individuals, HM Revenue & Customs data reveals.
The new income and tax data reveals discrepancies in income between self-employed and employed individuals and those in receipt of pensions in the UK.
In the tax year 2022/2023, employed individuals received an average of £10k more in income than self-employed ones and over £15k more than those in receipt of pensions. Additionally, employed individuals saw a significant increase in their median salaries from the previous year, from £35,553 to £37,144. This was not the case for self-employed people or pensioners, who registered a small decrease in income between the years.
Average overall income in the UK increased by over £1k in 2022/2023, from the previous year. This accompanied a tax increase of £300 overall.
On a local level, London areas saw the highest average overall income, as Kensington and Bayswater, Cities of London and Westminster, Chelsea and Fulham, Hampstead and Highgate, and Richmond Park, all registered average salaries of over £100k. Highest average taxes paid were also in London, particularly in Kensington and Bayswater (£62,300) and Cities of London and Westminster (£53,800).
Blackpool and Leicester East were at the bottom of the list, as average incomes in the constituencies were £26,500 and £26,800 respectively.
Pensioners in London saw the highest but also the lowest values in income. In Kensington and Bayswater, Chelsea and Fulham, and Cities of London and Westminster, pension income was higher than £30k. In Barking, East Ham and West Ham and Beckton, this was lower than £14k.
About this map
The map below shows statistics on average income and tax per person for the tax year 2022/2023. To explore detailed figures for your area, double-click on the map or click here to view the full-page version.
Geodata context
As new HMRC data reveals increasing income gaps between those who are employed and those in receipt of pensions, the government announced new tax plans which are set to greatly affect pensioners.
Nonetheless, Torsten Bell, MP for Swansea West and minister for pensions, addressed pensioners yesterday at the Pension and Lifetime Savings Association Conference 2025 on the importance of pensions and investment in the UK: “We want fewer, bigger, better pension schemes.”
“We have to pay more attention to returns for savers… rather than just to costs, or savings rates – important as both those are.”