Calls to not 'let Covid set us back' as figures show Portsmouth residents have lowest disposable income in region

The most recent data from the Office for National Statistics (ONS) revealed the average person in Portsmouth had £16,297 left after tax in 2018, significantly less than the average for the region of £24,318

This was despite the fact disposable income in the city had increased by three per cent since 2017.

It was also below the UK and England averages, which were £21,109 and £21,609 respectively. The average for south Hampshire that year was £21,117.

Conservative Portsmouth North MP Penny Mordaunt said the city had 'made massive progress over the last decade' but other measures would be needed due to the pandemic.

She said: 'The ONS report shows that the disposable income per person after tax has risen from £13,221 in 2010 to £16,297. The figures relate to 2018 so don’t show the Covid crisis.

'We have focused on creating jobs and on reducing the amount of tax people pay. In 2010 you started paying tax on anything you earnt above £6,475. Now the threshold is £12,500.

'We have also worked to hold down other things like council taxes and fuel duty so peoples money goes further.

'The city has made massive progress over the last decade, and we cant let Covid set us back. We need to redouble our efforts to level up Portsmouth, on this and other measures too.'

In contrast, people in Kensington and Chelsea, and Hammersmith and Fulham had almost four times as much as those in Portsmouth, and left with £63,286 each after tax.

The lowest disposable income in the UK in 2018 was in Nottingham where it was £13,138.

Portsmouth South MP Stephen Morgan, of the Labour party, said: 'Figures exposing that Portsmouth people have the least amount of disposable income across the region and far less than those in London, reveals governments decade of failure when it comes to addressing inequality in our city.

'Our community is truly feeling the bite of this Tory government’s punitive cuts to social security and incessant cuts to local authority budgets. With Universal Credit claims skyrocketing, financial uncertainty faced by thousands and gaps in government Covid-19 support, this pandemic is only enhancing the problem.

'That’s why I am calling for an emergency package of social security reforms, including scrapping the two-child limit and benefit cap, to help Portsmouth people deal with this emergency.'

From 2017 to 2018 the UK's total gross disposable household income increased by five per cent, to £1,402 billion.

Every region saw an increase, but London's remained the highest at £29,362 on average.

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