Annual Survey of Hours and Earnings 2010

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Corporate Research briefing paper
Annual Survey of Hours & Earnings
Annual Survey of Hours & Earnings (ASHE) - Earnings
This release presents the results of the Annual Survey of Hours and Earnings (ASHE) for April 2010, with
data on UK employees’ median levels of pay. The data was obtained from the National Statistics
website and is reproduced with the permission of the Controller Office of Public Sector Information
(OPSI). Two data sets are available, the first relates to median gross weekly earnings of those
persons for whom Blackburn with Darwen is a place of work and the second median gross weekly
earnings for residents of Blackburn with Darwen.
Information on wage levels can be used to evaluate the living standards of the residents and the
ability of residents to afford housing.
The Annual Survey of Hours and Earnings (ASHE) provides information about the levels, distribution
and make-up of earnings and hours worked for employees in all industries and occupations in the
United Kingdom.
The Annual Survey of Hours and Earnings is based on a sample of employee jobs taken from HM
Revenue & Customs PAYE records. The survey for 2010, is based on 16,804,000 returns.
When analysing the level of earnings of Pennine Lancashire residents it is important to note the
difference between incomes derived by residents who may or may not be commuting out the
borough to work (i.e. resident earnings) and earnings derived from work within the county
boundary alone (i.e. workplace earnings). These two alternative data sets, of median weekly pay,
from the Annual Survey of Hours and Earnings (ASHE), are shown side by side.
The ASHE results do not cover the self-employed, nor do they cover employees not paid during the
reference period. For the ASHE results the median (middle value) is used in this article as the
headline statistic. 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 (average) for earnings
data as it is influenced less by extreme values and because of the skewed distribution of earnings
data.
Page 1 of 7
Summary

The 2010 result reveals that the average full-time median weekly earnings for residents in the
Blackburn with Darwen area is £439.9, 12.3% lower than the national average of £501.80.

Across Pennine Lancashire resident earnings differ from workplace earnings, with the
exception of Blackburn with Darwen and Burnley, in four of the six districts residents earn more
than people who commute into the area to work.

The largest difference is in the Ribble Valley where residents earn on average £44.5 a week
more than those people that work in businesses in the area. In Blackburn with Darwen
resident based earnings are £5.10 less than people that work in the borough and in Burnley
this difference is £1.00.

Over the last year resident based earnings for all full-time employees in Blackburn with
Darwen increased by 2.5% and by similar but lesser amounts regionally, 2.4% and nationally
2.3%.

Workplace earnings in contrast increased by 1.6% while regionally and nationally they
increased by 2.3 and 2.4% respectively.

The gap between resident male and female full-time wage rates remains substantial within
Pennine Lancashire districts. The median weekly resident earning for males of £466.2 in
Blackburn with Darwen is considerably higher than the female earnings of £424.8 (i.e. the
median wage for male residents is 9.7% higher than that for females). This difference between
male and female full-time earnings in Blackburn with Darwen is the lowest of any Pennine
Lancashire district.

Similarly the median weekly earnings (£453.1) for males who work in Blackburn with Darwen is
2.6% or £11.60 higher than that for females (£441.5).

Over the last year resident full-time earnings for males increased by 5.2% and for females by
6.7%, workplace earnings during the same period increased by 2.2% for males and by 5.3%
for females.

In general not taking into account the gender of wage earners, full-time resident based
earnings are lower than workplace earnings in Blackburn with Darwen and Burnley.

Burnley has the lowest resident based earnings and Rossendale the lowest workplace based
earnings of the six Pennine Lancashire districts

All districts show higher male than female resident earnings, the largest difference being in
the Ribble Valley (£174.10) and Rossendale (£134.70) and the lowest is in Blackburn (£41.40).

All districts with the exception of Hyndburn have higher male full-time workplace earnings
than females.

In Blackburn male workplace earnings are 2.6% higher than female earnings, while in
Rossendale male workplace earnings exceed female earnings by 44%. In Pendle and the
Ribble Valley male earnings are higher than female earnings by a quarter.
Page 2 of 7
Full-time Workplace Earnings Pennine Lancashire
One consequence of the overall lower level of competitiveness, and historically a high
concentration of employment in traditional sectors, is that earnings of people working in Pennine
Lancashire districts tend to be below or lower than those of the North West region as a whole and
the UK average.
The ASHE data shows the median resident based earnings for Blackburn with Darwen in 2010 was
£439.9, while workplace based earnings was £445.
The graph and table below shows workplace and resident based earnings for the six Pennine
Lancashire districts.
Figure 1: Workplace and resident full-time median weekly earnings for Pennine Lancashire districts
Rossendale
Workplace
Resident
Ribble Valley
Pendle
Hyndburn
Burnley
Blackburn with Darwen
0
100
200
300
400
500
600
Table 1: Resident and Workplace based earning for Pennine Lancashire districts, 2010
Resident based
Workplace
Difference
earnings
based earnings
% (Residence/Workplace)
£ (A-B)
(A)
(B)
Blackburn with Darwen
439.9
445.0
-5.1
-1.1%
Burnley
410.0
411.0
-1
-0.2%
Hyndburn
428.7
411.2
17.5
4.3%
Pendle
416.1
407.0
9.1
2.2%
Ribble Valley
488.0
443.5
44.5
10.0%
Rossendale
424.8
399.8
25
6.3%
Lancashire
North West
GB
446.9
471.2
501.8
452.5
467.1
500.4
-5.6
4.1
1.4
-1.2%
0.9%
0.3%
Source: Annual Survey Hours & Earnings, through Nomis, ONS
The 2010 result reveal:
 Median weekly earnings for full-time residents in Blackburn with Darwen (£439.9) was £62 or
12.3% lower than the national average of £501.8 and 6.6% lower than the North West
average.
 All districts have resident based earnings that are lower than the national average.
 Median workplace earnings for Blackburn with Darwen were 11.1% lower than the national
average of £500.4 and 4.7% lower than the North West average.
 With the exception of Ribble Valley all Pennine Lancashire districts have resident based
earnings that are lower than the North West average.
 With the exception of Blackburn with Darwen and Burnley, in four of the six districts residents
earn more than people who commute into the area to work.
 The largest difference is in the Ribble Valley where residents earn on average £44.5 a week
more than those people that work in businesses in the area. In Blackburn with Darwen
resident based earnings are £5.10 less than people that work in the borough and in Burnley
this difference is £1.00.
Page 3 of 7
2 Residence and Workplace by gender and full-time work
Table 2: Full-time Resident and workplace earnings for males by district, 2010
Male full-time
Resident Workplace
Difference
%
based
based
(£)
(Residence/Workplace)
earnings
earnings
(A-B)
Blackburn with Darwen
466.2
453.1
13.1
2.9%
Burnley
420.0
431.8
-11.8
-2.7%
Hyndburn
439.8
409.7
30.1
7.3%
Pendle
454.1
445.3
8.8
2.0%
Ribble Valley
613.1
473.0
140.1
29.6%
Rossendale
488.1
442.0
46.1
10.4%
Lancashire
North West
GB
507.7
504.3
541.9
493.0
500.0
540.5
14.7
4.3
1.4
3.0%
0.9%
0.3%
Source: Annual Survey Hours & Earnings, through Nomis, ONS






Median earnings for full-time males in Blackburn with Darwen shows resident based earnings
to be 2.9% higher than workplace based earnings.
Male resident based earnings are £75.70 or 14% lower than the national average and
workplace earnings are 16.2% or £87.40 lower than national workplace earnings.
Male resident based earnings are lowest in Burnley £420 and highest in the Ribble Valley
£613.1
The Ribble Valley shows the largest percentage difference 29.6% between resident and
workplace earnings and Hyndburn the lowest, resident based earnings in the Ribble valley
are £140.1 higher than workplace based earnings.
With the exception of Burnley all areas have higher resident than workplace based
earnings. In Burnley resident based earnings are 2.7% or £11.80 lower than workplace
earnings
Hyndburn has the lowest workplace based earnings and Ribble valley the highest.
Table 2.1: Full-time Resident and workplace earnings for females by district, 2010
Female full-time
Resident Workplace
Difference
%
based
based
(£)
(Residence/Workplace)
earnings
earnings
(A-B)
Blackburn with Darwen
424.8
441.5
-16.7
-3.8%
Burnley
354.5
368.2
-13.7
-3.7%
Hyndburn
395.9
415.0
-19.1
-4.6%
Pendle
390.5
358.5
32
8.9%
Ribble Valley
439.0
377.6
61.4
16.3%
Rossendale
353.4
308.2
45.2
14.7%
Lancashire
North West
GB
405.1
418.1
440.0
388.3
417.8
439.8
16.8
0.3
0.2
4.3%
0.1%
0.0%
Source: Annual Survey Hours & Earnings, through Nomis, ONS





Earnings of female residents in Blackburn with Darwen are £15.20 or 3.5% lower than the
national average, workplace earnings show little or no difference compared to national
earnings.
In Blackburn with Darwen the difference in earnings for females between resident and those
who commute into the area to work earnings show wages for female resident’s to be
£16.70, or 3.8% lower than workplace based earnings of £441.5.
The largest wage differential between workplace and resident-based earnings amongst
female full-time employees is £61.40 in the Ribble Valley.
Burnley and Rossendale have lowest residents based earnings for females and the Ribble
Valley the highest.
Rossendale has the lowest workplace earnings for females and Blackburn with Darwen the
highest.
Page 4 of 7
3: Earnings – Gender pay gap
The tables below show workplace place and resident earnings for full-time males and females.
Table 3: Resident earnings for full-time workers, 2010
Male
Female
Resident based earnings
Difference £
FT
FT
Blackburn with Darwen
466.2
424.8
41.4
Burnley
420.0
354.5
65.5
Hyndburn
439.8
395.9
43.9
Pendle
454.1
390.5
63.6
Ribble Valley
613.1
439.0
174.1
Rossendale
488.1
353.4
134.7
Lancashire
North West
GB
507.7
504.3
541.9
405.1
418.1
440.0
% (Residence/Workplace)
9.7%
18.5%
11.1%
16.3%
39.7%
38.1%
102.6
86.2
101.9
25.3%
20.6%
23.2%
Source: Annual Survey Hours & Earnings, through Nomis, ONS Crown copyright





All districts show higher male than female earnings, the largest difference is in the Ribble
Valley (£174.1)and Rossendale (£134.70) and the lowest is in Blackburn with Darwen
(£41.40)
Male full-time earnings for residents in the Ribble Valley and Rossendale are 40% higher than
female full-time resident earnings, far in excess of the local, regional and national levels.
The Ribble valley has the highest resident based earning of any Pennine Lancashire district
with £613.1.
Hyndburn and Burnley have the two lowest earnings for male residents.
Burnley and Rossendale have the lowest earnings for female residents.
Table 3.1: Workplace earnings for full-time workers, 2010
Workplace based
Male
Difference
Female FT
earnings
FT
(£)
Blackburn with Darwen
453.1
441.5
11.6
Burnley
431.8
368.2
63.6
Hyndburn
409.7
415.0
-5.3
Pendle
445.3
358.5
86.8
Ribble Valley
473.0
377.6
95.4
Rossendale
442.0
308.2
133.8
Lancashire
North West
GB
493.0
500.0
540.5
388.3
417.8
439.8
% (Residence/Workplace)
104.7
82.2
100.7
2.6%
17.3%
-1.3%
24.2%
25.3%
43.4%
27.0%
19.7%
22.9%
Source: Annual Survey Hours & Earnings, through Nomis, ONS Crown copyright





All areas with the exception of Hyndburn show male full-time workplace earnings to be
higher than female earnings.
The smallest difference is in Hyndburn where male workplace earnings are lower than
female earnings by 1.3%
Blackburn with Darwen’s male workplace earnings is 2.6% higher than female earnings.
The largest difference is Rossendale where male earnings are 44% higher than female
earnings.
Pendle and Ribble Valley male earnings are in excess of female earnings by a quarter.
Caution should be exercised when looking at gender pay gaps as they may well, in part, be due to
the types of work that males and females tend to do and the different level of pay associated with
a particular occupation or industry
Page 5 of 7
4: Earnings – Blackburn with Darwen
Table 4 Median Gross Weekly Earnings by Place of Residence and Place of Work, April 2010
Blackburn with Darwen
Residence based
Workplace-based
North West
Great Britain
Residence-based
Residence-based
% Resident/
%
Weekly change Weekly % change Workplace Weekly pay % change Weekly
pay (£) 2009pay (£) 2009-2010
(£)
2009-2010 pay (£)
2010
Full-time males
466.2
Part-time males 124.0
5.2%
453.1
2.2%
2.9%
% change
2009-2010
504.3
1.2%
541.9
1.4%
-
-
-
150.7
4.5%
154.6
7.7%
All males
396.9
-2.1%
407.3
-0.4%
-2.6%
464.1
0.9%
500.4
1.2%
Full-time
females
424.8
6.7%
441.5
5.3%
-3.8%
418.1
2.5%
440.0
3.1%
Part-time
females
159.0
11.3%
-
-
154.9
1.6%
158.1
1.4%
All females
282.2
-0.1%
333.2
4.3%
-15.3%
307.2
3.1%
317.4
2.1%
All full-time
employees
439.9
2.5%
445.0
1.6%
-1.1%
471.2
2.4%
501.8
2.3%
All part-time
employees
142.0
-1.0%
161.6
7.1%
-12.1%
150.7
-0.1%
154.6
1.0%
All employees
346.9
1.2%
377.9
1.9%
-8.2%
381.3
2.0%
406.7
1.8%
Figures are for all employees on adult rates of pay not affected by absence.
Source ONS: Annual Survey of Hours and Earnings
Table 4 shows workplace and resident based earnings for different groups in Blackburn with
Darwen. The table shows that

Resident based earnings for all full-time employees in Blackburn with Darwen increased by
2.5% and by similar but slightly lesser amounts regionally and nationally.

Workplace based earnings in contrast only increased by 1.6%, while regionally and
nationally they increased by 2.3-2.4%.

Resident earnings for male full-time employees increased by 5.2% from 2009 levels and by
1.2% in the North West, nationally earnings for this group increased by 1.4%.
Blackburn with Darwen
Workplace
Resident
All part-time employees
All full-time employees
Part-time females
Part-time males
Full-time females
Full-time males
0
100
200
300
400
500
600
Page 6 of 7
5 Median Gross Annual Earnings
As well as providing data on average gross weekly earnings, the ASHE also provides information on
average gross annual earnings. The figures are available down to the district level.
The median earnings figures highlight the middle value for each area, therefore are not influenced
by the very large salaries earned by a relatively small number of high fliers at the top of their
professions.
Table 5: Median Gross Annual Earnings for full-time Employees by Place of Residence, April 2010
Blackburn with Darwen
Burnley
Hyndburn
Pendle
Ribble Valley
Rossendale
Lancashire
North West
Great Britain
Full-time
males
£
24,859
22,954
22,188
22,975
29,647
25,023
Full-time
females
£
21,079
17,802
19,799
20,843
18,684
Full-time employees
£
22,845
21,089
21,653
21,609
23,966
21,874
GB=100
87.9
81.1
83.3
83.1
92.2
84.1
% change 2009-2010
-1.1%
1.6%
1.3%
-2.8%
-6.1%
25,661
26,204
28,265
20,917
21,447
22,533
23,926
24,259
26,000
92.0
93.3
100
0.5%
1.0%
0.3%
Source: Annual Survey Hours & Earnings, through Nomis, ONS
Median earnings for all employees by place of residence in GB for April 2009 stood at £26,000. For
the Lancashire area, the residence-based figure for all employees was £23,926, 8.0% lower than the
national average. Blackburn with Darwen’s resident-based figure of £22,845 is 12.1% lower than the
national average and 4.5% lower than the Lancashire average.
The gender split reveals that for the Blackburn with Darwen, gross annual median earnings for
female residents are 17.9% lower than gross annual median earnings for males, this equates to
£3,780 less for females than males.
In general terms the results for the 14 local authorities broadly reflect what would be expected.
With respect to full-time earnings Fylde district manages to top the list with an average of £28,692.
Lancaster, South Ribble, and West Lancashire recorded figures of 25K or more. Districts recording
figures of less than this include many of the districts in the east of the county. Burnley recorded
median wage levels well below the £22K level. Blackburn with Darwen recorded median wage
levels higher than £22K but lower than £24K or more earned in other parts of the county.
Earnings in Rossendale (£21,874) were closer to the £22k mark, than those of Hyndburn (£21,653) or
Pendle residents (£21,609). Burnley has the lowest gross earnings of any Pennine Lancashire district
with £21,089.
The largest percentage change in gross annual full-time earnings has been in Rossendale which
experienced a reduction in of £1400 from 2009 levels, gross earnings in this case are 6.1% lower than
the previous year. The Ribble Valley also saw a decrease in gross earnings of 2.8% (£700) less than
2009 earnings levels. All other districts experienced modest increases in gross earnings.
Further information
This briefing was prepared by: Saeed Patel
Research and Intelligence Officer
Corporate Research Joint Intelligence
3rd Floor Old Town Hall
saeed.patel@blackburn.gov.uk
01254 58(5106)
Page 7 of 7
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