HOUSEHOLD INCOME TYNE AND WEAR CITY REGION SUPPLEMENT 2007 September 2009 By John Horne, Peter Sturman and Kadhem Jallab Reference: EP 09/09 TYNE & WEAR RESEARCH AND INFORMATION 1st Floor Provincial House Northumberland Street Newcastle upon Tyne NE1 7DQ Tel: (0191) 277 1912, Fax: (0191) 277 1911 E-MAIL: [email protected] WEBSITE: www.twri.org.uk Supported jointly by Cities of Newcastle and Sunderland and the Metropolitan Boroughs of Gateshead, North Tyneside and South Tyneside Household Income 2007, Tyne and Wear City Region Supplement CONTENTS KEY POINTS ………….…………………………………………………………………………………… 1 1.0 INTRODUCTION ……….…………………………………………………………………..………. 2 1.1 HMRC Personal Income ……………………………………..……………………………………… 2 1.2 Household Income (Estimated by Middle Super Output Area) ………………………………….. 2 1.3 Indices of Deprivation 2007 ………………………………………………………………………… 3 TABLES 3.3S Number of LSOAs by Area and Selected Deprivation Band, Income Domain ………………… 4 3.4S Average Income Domain Score, Overall and by Upper and Lower Bands …………………… 5 3.5S [Children] Number of LSOAs by Area and Selected Deprivation Band, IDAC ………………… 6 3.6S Average IDAC Score, Overall and by Upper and Lower Bands ………………………………… 7 3.7S [Older People] Number of LSOAs by Area and Selected Deprivation Band, IDAOP ………… 8 3.8S Average IDAOP Score, Overall and by Upper and Lower Bands ……………………………… 9 APPENDICES 1.1S Personal Income (Mean) ……………………………………………………………………………. 10 1.2S Personal Income (Median) .………………………….……………………………………………… 11 A3.6 Modelled Household Income Estimates for Durham MSOAs within TWCR 1 …………………… 12 A3.7 Modelled Household Income Estimates for Northumberland MSOAs within TWCR …………. 13 1 TWCR – Tyne and Wear City Region; an area covering the former local authority districts of Chester-le- Street, Derwentside, Durham, Easington, Blyth Valley, Castle Morpeth, Tynedale and Wansbeck plus the local authority districts of Gateshead, Newcastle, North Tyneside, South Tyneside and Sunderland. Tyne & Wear Research and Information Household Income 2007, Tyne and Wear City Region Supplement KEY POINTS This supplementary report presents information on the household incomes of residents in the Tyne and Wear City Region (TWCR). It should be used in conjunction with Household Income in Tyne and Wear 2007. • In 2006/07, within the Tyne and Wear City Region Districts, Easington had the lowest mean personal income (£17,900) at only 70% of the UK (§1.1). Castle Morpeth had the highest (£33,200), 130% of the UK. These estimates of personal income are subject to a wide margin of error. Source: Her Majesty's Revenue and Customs, HMRC. • Household Income by MSOA (2004/05 estimates from ONS) (§1.2) (Appendix 3). These can be found on the Neighbourhood Statistics website. 2 • Just under 18% of LSOAs in the North East fell within the most deprived 10% of LSOAs in England (§1.3). Source: Department of Communities and Local Government, Indices of Deprivation 2007 (ID 2007). • On the ID 2007 Income Domain, 14% of LSOAs in the TWCR fall within the most deprived 10% of LSOAs in England (§1.3). • On the Income Deprivation Affecting Children (IDAC) Index, 11% of LSOAs in the TWCR fall within the most deprived 10% of LSOAs in England (Table 3.5S). • On the Income Deprivation Affecting Older People (IDAOP) Index, 15% of LSOAs in the TWCR fall within the most deprived 10% of LSOAs in England (Table 3.7S). Note: Comparisons, through time, for the UK, show real incomes have risen by about a third since the early 1990s, and broadly doubled since the 1970s. 2 (Lower-level) Super Output Areas, with an average population of about 2,000 people Tyne & Wear Research and Information 1 Household Income 2007, Tyne and Wear City Region Supplement 1.0 INTRODUCTION This report is a supplement to Household Income in Tyne and Wear 2007 and should be used in conjunction with that report. Eight tables in the main report, including two tables in Appendix 1, have been expanded for the supplement. These tables are numbered as in the main report but include a suffix S. In addition, two extra tables are included in Appendix 3. [Note that this supplement does not include an Appendix 2 because there were no expansions or additions to this appendix.] This supplement includes expanded tables on Personal Income (from Her Majesty's Revenue and Customs, HMRC), Household Income Estimates by ONS and Income Indicators from the Index of Deprivation 2007. 1.1 HMRC Personal Income HMRC’s estimates of Personal Income have very wide confidence intervals at District-level. (Detailed estimates are given in Appendix 1 for information only). The confidence intervals for average income at District level range from about ±£600 (Sunderland) to ±£4,400 (Castle Morpeth). This is equivalent to ±3% of the stated estimate for Sunderland and ±13% for Castle Morpeth. In 2006/07, within the Tyne and Wear City Region Districts, Easington had the lowest mean Personal Income (£17,900) at only 70% of the UK. Two Districts had Personal Incomes above the UK average; Tynedale (£27,500) and Castle Morpeth (£33,200); 108% and 130% of the UK average respectively. 1.2 Household Income (Estimated by Middle Super Output Area) ONS has produced a series of model-based income estimates for Middle Super Output Areas (MSOAs) in England & Wales. The estimates were produced for 2004/05. Estimates are for four income types: • Average weekly household total income (unequivalised). • Average weekly household net income (unequivalised). • Average weekly household net income before housing costs (equivalised). • Average weekly household net income after housing costs (equivalised). Within the Tyne & Wear City Region MSOAs, Blyth Valley 006 (BV006) has the highest gross weekly household income at £1,020pw (or £53,040 annually). BV006 includes the Northburn area of Cramlington. Newcastle 030 (Nc030) has the lowest gross weekly income at £320 (or £16,640 annually). Nc030 covers most of Walker Riverside and includes St. Anthony’s. Detailed income estimates for Durham and Northumberland MSOAs within the Tyne and Wear City Region are provided in Appendix 3S. Since MSOA boundaries are not as well known as wards, the average weekly household total income (unequivalised) has been mapped for all MSOAs within the City Region. [These estimates can be found on the Neighbourhood Statistics website. They are not yet fully accredited by ONS as a National Statistic; instead they are labelled Experimental Statistics.] 2 Tyne & Wear Research and Information Household Income 2007, Tyne and Wear City Region Supplement 1.3 Indices of Deprivation 2007 The ID 2007 income domain can be used to identify Super Output Areas (SOA) with the greatest poverty. It directly counts the number of people (including children) dependent on one of the four means-tested benefits. This produces estimates of the proportion of people deprived of a reasonable income. The ID 2007 was constructed by the Social Disadvantage Research Centre (SDRC) at the Department of Social Policy and Social Work at the University of Oxford. Two supplementary indices, relating to income, have been produced alongside the ID 2007: • Income Deprivation Affecting Children Index (IDACI) • Income Deprivation Affecting Older People Index (IDAOPI) Just under 18% of LSOAs in the North East fell within the most deprived 10% of LSOAs in England on ID 2007. The only region to exceed the North East was the North West, which had the highest proportion (20.4%); the South East had the lowest (1.8%). In terms of income deprivation, Tyne and Wear City Region has 152 LSOAs (14%) in the most deprived 10% of LSOAs in England. There are 32,482 LSOAs in England. Tyne & Wear Research and Information 3 Household Income 2007, Tyne and Wear City Region Supplement On the Income Domain measure, 24% of Newcastle’s LSOAs are in the most deprived 10% of English LSOAs (Table 3.3S). In Sunderland, 21% are in the most deprived 10%; followed by South Tyneside (19%), Gateshead (15%), Easington (13%) and Wansbeck (12%). The other Districts are all below 10%. In Castle Morpeth and Tynedale there are no LSOAs within the 10% most deprived of English LSOAs. Table 3.3S Number of LSOAs by Area and by Selected Deprivation Band 1, Income Domain within 5% within 5% most least All deprived 1 >5% <=10% 1 >90% <=95% 1 deprived 1 Blyth Valley 52 2 2 3 6 Castle Morpeth 33 0 0 1 6 Chester-le-Street 34 1 0 3 1 Derwentside 55 0 4 0 0 Durham 54 0 1 6 6 Easington 63 3 5 1 1 Gateshead 126 10 9 5 2 Newcastle upon Tyne 173 23 18 11 10 North Tyneside 129 4 5 7 6 South Tyneside 103 9 11 1 2 Sunderland 188 12 28 7 0 Tynedale 38 0 0 1 1 Wansbeck 41 1 4 1 3 Tyne and Wear City Region 1,089 65 87 47 44 Percentage of total by area Blyth Valley 100.0% 3.8% 3.8% 5.8% 11.5% Castle Morpeth 100.0% 0.0% 0.0% 3.0% 18.2% Chester-le-Street 100.0% 2.9% 0.0% 8.8% 2.9% Derwentside 100.0% 0.0% 7.3% 0.0% 0.0% Durham 100.0% 0.0% 1.9% 11.1% 11.1% Easington 100.0% 4.8% 7.9% 1.6% 1.6% Gateshead 100.0% 7.9% 7.1% 4.0% 1.6% Newcastle upon Tyne 100.0% 13.3% 10.4% 6.4% 5.8% North Tyneside 100.0% 3.1% 3.9% 5.4% 4.7% South Tyneside 100.0% 8.7% 10.7% 1.0% 1.9% Sunderland 100.0% 6.4% 14.9% 3.7% 0.0% Tynedale 100.0% 0.0% 0.0% 2.6% 2.6% Wansbeck 100.0% 2.4% 9.8% 2.4% 7.3% Tyne and Wear City Region 100.0% 6.0% 8.0% 4.3% 4.0% Source: Department of Communities and Local Government, Indices of Deprivation 2007.