The latest IT Contractor News from Contract Eye

Data from the UK's largest umbrella provider, Parasol, shows how much contractors can typically earn in each region of the UK.

According to the latest report from Parasol Group, there is a massive gap between average pay between the highest and lowest paid regions.

London leads the pay rankings

Unsurprisingly, the best place to work as a contractor (earnings wise) is Greater London, where average earnings for umbrella contractors is £65,811 per year, and the worst place to work is Northern Ireland, where the average annualised rate is a mere £23,847 - a significantly lower figure than any other region.

After London, the South West and South East are lucrative places to work, yielding £62,992 and £61,106 respectively.

The average annualised rates for the other UK regions are; Wales (£57,334), Scotland (£53,298), West Midlands (£51,711), North East (£51,606), North West (£49,191), and East Midlands (£45,366).

Overall, the average hourly rate for umbrella contractors has fallen to £32.39 this year compared to £33.12 last year.

A boom for contractors in Wales?

Commenting on the latest snapshot of pay data, Derek Kelly, MD of Parasol Group said that the disparity between regions was very interesting.

"Welsh contractors and freelancers do seem to have more earning power than the regional average for permanent workers suggests. Obviously there is demand for certain skills in Wales which is driving the market and this could be a precursor to growth in the Welsh economy. Central Government has made investment in Wales in recent years, with more to come in the shape of 6 enterprise zones, and this will only mean more opportunities for Welsh contractors and freelancers."