Lancashire County Council Logo | Listen | Home | A to Z | Feedback | Complaints | Your Council | Business | Residents | Visitors |

Personal Incomes
2005/2006

March 2008

Introduction

HM Revenue and Customs tax offices hold information on persons who could be liable to pay UK tax. A sample survey is carried out annually and covers the income assessable for tax in each tax year.

Table 1 includes mean and median value personal income figures for Lancashire authorities, the North West and UK. The median is the value below which 50% of employees are allocated and is more reflective of the 'typical' wage or income. It is preferred over the mean for earnings data as it is influenced less by extreme values and because of the skewed distribution of earnings data. The complimentary ASHE results place the emphasis on the median (middle value) to replaces the mean (average value) as the headline statistic.

The approximate national sample size for 2005-06 is 540,000, and the cases have been grossed up to forecast the number of people in each area that will eventually file 2005/06 tax returns and pay the tax due. This particular research monitor examines the results for the Lancashire area, but full details for all areas of the UK for the 2005/06 financial year, can be downloaded from the (External) HM Revenue and Customs Personal Incomes website . Our Data Download Centre contains details of the Lancashire figures from 2003/2004, and earlier editions of this research monitor are in the Archive .

Lancashire Results

Estimated total personal incomes in Lancashire County and its constituent districts, together with Blackburn with Darwen and Blackpool unitary authorities for the financial year 2005/06, are shown in Table 1. The estimates given in the table for the districts are based on small numbers and as such are subject to sampling errors.

The personal incomes data reveal that the median or "typical" personal income in the Lancashire County of £16,000 is estimated at 94% of the UK average in 2005/06. In comparison, the mean is estimated to be much higher at £21,800, but is only 90% of the UK average. Table 1 reveals that the mean figures are in each case noticeably higher than the median results. This is because they are significantly influenced by a relatively small numbers of high earners and offer a somewhat distorted viewpoint of what would be a typical personal income. The median values give a better picture of the typical income levels.

Overall, in terms of "median" personal incomes, Lancashire County is ranked a lowly joint 30th with Northumberland, Shropshire and the West Midlands, out of the 40 English shire and metropolitan counties in 2005/06, in a range that extended from £22,100 per annum in Surrey to £14,100 in Cornwall & the Isles of Scilly. On the basis of "mean" personal incomes, the county was ranked in joint 28th position within a much broader range of incomes spanning from £36,400 in Surrey to £18,800 in Cornwall.

The 2001 Census figures revealed a positive net daily outflow of over 20,000 more people commuting to jobs outside the county than coming into the area for work . Personal incomes in Lancashire are therefore to some extent underpinned by people commuting to better work opportunities in Liverpool and Manchester.

District and Unitary Authority Results

In the case of the twelve Lancashire districts and the two unitary authorities, the median results reveal that the typical income is highest in Ribble Valley (£18,200), followed by Chorley and Fylde (both with £17,800).

High 'mean' income districts may be characterised by the local presence of generally high wage local companies/industries. They can also be underpinned by positive outward commuting flows, presumably reflecting the desire of many higher income earners to work in larger urban or metropolitan areas whilst enjoying the perceived benefits of a more "rural" or small town life style.

Fylde and Ribble Valley were the two Lancashire districts that recorded mean figures higher than the UK average. Both Fylde and Ribble Valley benefit from being attractive rural locations that are popular with commuters. In addition, the local BAe systems factories at both Warton and Salmesbury provide thousands well-paid job opportunities.

Pendle recorded the lowest median income in Lancashire (£13,700), whilst the neighbouring district of Burnley had the lowest 'mean' figure in Lancashire with £18,100.

The 2005/06 edition of this article presents for the first time a breakdown of the results for employees, the self-employed and pension income (Tables 2-4). The three tables have average figures that are well below the overall averages in Table 1. The exclusion of investment income (in Table 1 but not the other three) is part of the reason. Some people will supplement occupational pension income whilst continuing to work, whilst there may be other factors such as welfare benefits to working people that could impact on the results.

The three tables together highlight the following points:

• The median self-employment figures for the Lancashire County Council area (£9,450) is significantly below the average median employee figure of £15,700, and is well below median earnings for employees.
• Chorley district recorded the highest figures in Lancashire for median employee earnings £17,700.
• In five Lancashire authorities, median pension income levels are above the UK average. The joint highest totals were in Fylde and Preston.

This page was compiled by Bryan Moulding .

All enquiries from the media should be sent to Corporate.Communications@lancashire.gov.uk .

Any other questions about the content of this page may be sent to EconInfo@lancashire.gov.uk .

For all enquiries about the county council's services , contact the Customer Service Centre on 0845 0530000 (01772 530000) or at Enquiries@css.lancscc.gov.uk .

Change Text Only Settings