We urgently need to improve 'alarmingly low' wages in the North East - it's about dignity and opportunity

An NHS inequalities report has found that none of the seven council areas mentioned matches the national average weekly wage of £566. Sunderland and South Tyneside were ranked bottom, with the average resident taking home just £502 a week.

The full list of weekly earnings by council area is as follows: 

- North Tyneside: £554

- Northumberland: £526

- Newcastle: £524

- County Durham: £519

- Gateshead: £507

- South Tyneside: £502

- Sunderland: £502

While a similar proportion of the working age population in Sunderland are in employment (73%), compared to the national average (76%), the weekly average earnings are significantly lower. Meanwhile South Tyneside has a much lower unemployment rate of 65%.

Coun Paul Dean, lead member for voluntary sector, partnerships and equalities,at South Tyneside Council is calling for “urgent action” to tackle the inequalities in pay in the region.

He said: “The findings of the LA7 report highlight the urgent need to tackle low pay and inequality in our region. Through our Anti-Poverty Strategy, we are taking targeted action to support residents, promote fair employment, and ensure that no one is left behind.

‘It’s about dignity’

Coun Dean continued: “Tackling poverty is not just about income – it’s about dignity, opportunity, and health. We remain committed to building a fairer, more inclusive South Tyneside.”

The council boss also highlighted the local authority’s commitment to invest in skilled jobs through schemes like the International Advanced Manufacturing Park (IAMP) and the relocation of Tyneside Coast College. South Tyneside Council has previously stated IAMP has been designed to attract private investment and 7,500 jobs in automotive, energy, rail, aerospace, and pharmaceutical manufacturing. 

The Tyneside Coast College scheme, according to the Shields Gazette,  will see the college move from its current Westoe site to central South Shields  with a new 15,000 sqm campus. South Tyneside Council was also the first in the North East to launch a Child Poverty Strategy, which has seen families supported with the costs of school uniforms and meals, alongside other measures to alleviate struggling communities. 

Encourage wage growth

A Sunderland City Council spokesperson added: “The city council is continuing to work with its private and public sector partners on helping to create jobs, attract investment, and on educational and training opportunities to help encourage wage growth.

“This includes major investment and job creation schemes such as at the International Advanced Manufacturing Park (IAMP), plus tackling the inequalities that can come from lower wages.

“In 2023, Sunderland became the first city in the North East to be recognised as a Living Wage Place by the Living Wage Foundation and work is ongoing to help secure better wages for workers and see more money going into the local economy.”

The NHS inequalities report due to be discussed by councillors throughout the region next week.