A study has shown that northerners are £2,300 worse off than the rest of the UK.

Research shows that workers in the north have less disposable income – and the gap widens to £7,200 when compared to London, according to the Institute for Public Policy Research (IPPR) North.

It puts greater emphasis on the government’s plan to build a Northern Powerhouse to be delivered and to work.

“These figures show the Northern Powerhouse has a long way to go before people in the north feel the benefit of a stronger regional economy,” said Luke Raikes, research fellow at IPPR North.

He added that the region would be unable to escape historic under performance of its economy without a “step change in policy.”

Disposable income is any money leftover for saving or spending after taxes.

The study found the UK average disposable income stood at £17,600, but this fell to £15,300 when you looked at the north in isolation. In Yorkshire the figure is marginally lower at £15,252.

The Northern Powerhouse is a government initiative to unite northern cities and towns to rival the south.

It would see fiscal power devolved and bring a raft of cash to boost infrastructure. Although plans for Trans-Pennine rail line electrification – one of the headline promises – have been “paused” by the government.

The IPPR report stressed that, while it welcomed the government’s Northern Powerhouse agenda, a key test of its success must be how it translates into higher living standards for people living and working in the region.

Mr Raikes added: “Correcting the imbalances in our nation’s economy is about more than just stronger economic growth figures or faster journey times – we have to improve the quality of life and incomes of people in the north too.

“The North should pursue growth and prosperity built on higher wages, more jobs and stronger productivity... the Northern Powerhouse will be meaningless for the people who live and work in the north unless the economic growth it generates reaches their pockets.”