Where is the UK's lowest pay - and why?

A new study has revealed that Hull has lower pay than any other city in the UK - followed by Blackburn and Blackpool. It also claimed that average salaries across the country had dropped by an incredible £1,300.

The report, by think-tank Centre for Cities, found a gulf of £253 a week between the highest paid cites and the lowest paid. Hull had the lowest - at £376, followed by Blackburn at £404 and Blackpool at £414.
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Ten lowest wage cities

1. Hull £376
2. Blackburn £404
3. Blackpool £141
4. Mansfield £414
5. Sunderland £416
6. Plymouth £423
7. Stoke £427
8. Telford £430
9. Middlesbrough £430
10. Doncaster £431

Why?

This is partly a function of the kind of jobs available in the cities. Hull has been working hard to boost professional industries in the city, and hopes that being named UK City of Culture in 2017 will attract investment, but it has a long way to go. There is a skills shortage in the area, and as a result companies with highly skilled and well-paid jobs don't tend to choose to relocate to Hull.

Alexandra Jones, chief executive of Centre for Cities said: "One of the most pressing issues is the need to tackle skills-gaps and improve schools attainment, especially in low-wage cities, to help those places attract businesses and jobs, and support more people to move into work, particularly in high-skill sectors. This should be a key part of the Government's Northern Powerhouse initiative alongside investment in infrastructure, and a top priority for local leaders."

At the same time, there is an imbalance between the jobs market - which does not have a plentiful supply of new available roles - and an unemployment level that's higher than average. Having a lot of people competing for each job means employers can pay lower wages.

Overall the study classed half the 63 cities examined as 'low wage, high welfare' cities.

High wages

At the other end of the spectrum, London, Reading and Aldershot had the highest wages. London has an average weekly wage of £629, Reading has an average of £591 and Aldershot £571. The rest of the top 5 is rounded out by Aberdeen (although the figures were compiled before the collapse in the oil price) and Milton Keynes.

These areas are seeing faster jobs growth, so employers are having to pay higher wages to attract staff. In fact, the study found that the number of jobs in high-wage cities was up 10% since 2010, compared to 3% in low-wage cities. There are also a higher number of high-paying professional jobs - particularly in London.

Interestingly, the study found that the fact that housing is so expensive in these well-paid areas meant people are still claiming benefits to make ends meet - so there was no vast difference between the benefits claimed in areas with lower wages and those claimed in places where jobs are better-paid.

Jones says: "For cities which have seen strong growth in wages and jobs, the focus should be on addressing housing shortages, to ensure that their success isn't derailed by a lack of affordable homes."