20-07-2025
How rich are YOUR neighbours? Disposable income in cities across Britain revealed
THE UK cities with the highest disposable income have been revealed.
Residents in Belfast have the highest level of disposable income compared to any other British city, according to new figures from MoneySuperMarket's Household Money Index (HMI).
The quarterly report tracks how much people in the UK spend on various bills and everyday expenses.
Dwellers in the Northern Irish city have a total of £923.28 left over every month after bills, spending 57.9% of their wages on wifi, rent and other costs.
The average resident spends £1343.47 per month on outgoings, which is one of the lowest compared to other UK cities.
The figure is a whopping £884.74 more than what locals in Plymouth have to live on after other outgoings are paid.
Residents in the port city spend 93.5% of their wages on bills, leaving £117.54 left over at the end of the month.
And plenty of other residents in the UK cities also have little to spend after shelling out on their mortgage and other bills.
In Nottingham, the average household has just £175.53 worth of disposable income to play with every month after spending £1313.72 on bills.
Meanwhile, in Birmingham residents have just £268.39 left over after paying £1728.36 on utilities.
And the figures show that earnings after tax also varies greatly from city to city.
Londoners take home an average of £30,930 every year after tax, which is a whopping £13,059 more than the average Nottingham resident.
Household Support Fund
But people in the capital are often paid more due to a combination of factors including a higher cost of living and concentration of high-paying jobs.
For example, the average rent in London for June 2025 was £2,252, according to new figures from the ONS.
This is compared to Nottingham where renters paid £982 in June.
Household bills rise
But regardless of location the average Brit is being asked to pay more.
Figures show the average household spend on essential bills and everyday outgoings has jumped by £38.95 per month from May 2024 to July 2025.
Furthermore, disposable income fell by 33% from April to July 2025.
The average person has just £513.75 left at the end of each month after their bills and outgoings.
It comes despite the spending on energy falling by 9%, from £110.20 a month to £100.20, as Ofgem's new energy price cap came into force.
Mortgage costs have also reduced as the market pins its hopes on a base rate cut in August.
But many of these dips have been offset by other rising household costs such as childcare and water bills.
Childcare and school costs have risen by 10%, while water bills have risen by 11% on average.
Back in April, the average annual water and wastewater bill increased by £123, taking it from £480 to £603.
Lis Barton, chief customer officer of MONY Group - the parent company of MoneySuperMarket - said checking you're getting the "best deal on essential household bills could soon add up to savings".
She explained: " Energy bills have eased off for many this summer, helped along by a lower price cap, milder weather, and more fixed-rate deals on the table - offering a bit of breathing space in a still-volatile market.
"However, there are some bills that are more difficult to cut, like water and childcare costs."
How to cut your bills
IF you're struggling financially, you might be able to cut the cost of your bills to help you get out of the red.
Council tax: You can apply for a council tax reduction on the website but you'll need to meet certain criteria. Your bill could be cut by as much as 100 per cent if you're on a low income or claim benefits. Carers who look after someone in the household for at least 35 hours a week are also exempt from paying.
Water: Households might be able to save money by getting a water meter but it all depends on how much you're using. To check if it's finacially worthwhile, use the Consumer Council for Water's free ater meter calculator.
Rent: If you have the space available and your landlord or local authority says it's ok to do so, you might want to consider getting a flatmate. Not only will you split the cost of the rent, but also the other bills.
Hire purchase: If you're struggling to make your repayments on your hire purchase, you can usually end the contract by returning the goods. You will have to pay all the instalments due up to the time you end the agreement but this will limit the amount you owe. Contact Citizens Advice for free for more help with this.
Gas and electricty: MoneySavingExpert says families can save £330 on average by switching from Standard Variable Tariffs (SVTs) to a better rate. Use a comparison site such as MoneySuperMarket or Energyhelpline to see what deals are available.
Mortgage: If you get into debt with your mortgage payments, don't wait for your lender to chase you. Work out what you can afford using the Citizens Advice budgeting tool so you can discuss your payment options moving forward with your mortgage provider.
Secured Loan: Your secured loan might be covered by the Consumer Credit Act and if it is, you may be able to apply for a Time Order. This is a special agreement by the courts allowing you more time to make payments. Secured loans not covered by the Consumer Credit Act include gas, electricity or water meters, payments that need to be written off in full, mortgages, credit union loans, loans from an employer and some short term trade agreements.
County Court Judgements: If you receive a County Court claim form talk to a free debt advice service straight away. This includes Citizens Advice (0808 800 9060), StepChange (0800 138 1111) and the National Debtline (0808 808 4000).
TV licence: Some households are eligible for a reduced fee or free TV Licence. Check here to see if you are entitled to a reduced or free rate.
