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ISLANDERS in the Outer Hebrides are the happiest people in Britain despite having one of the lowest average incomes.

Residents from Lewis to Barra have the highest levels of life satisfaction closely followed by Orkney islanders who rank second.

A new index, compiled by a London-based international think-tank, has been created that measures prosperity using the level of life-satisfaction and happiness as well as traditional financial wealth.

Using this barometer they found that Scotland is more prosperous than England and is home to four of the top 10 most prosperous parts of the United Kingdom.

The Outer Hebrides (5), Orkney (6), Shetland (9) and Aberdeen combined with Aberdeenshire (10) all rank in the top 10 helping Scotland beat England’s level of average prosperity.

The Legatum Institute have today published their first ever ‘Geography of Prosperity’ Index, comparing the prosperity of 170 areas across the United Kingdom.

Findings are based on measuring the average income per person along with how happy they feel.

Scotland’s top performers contain some of the wealthiest parts of the UK.

(Image: PA)

The oil industry helps boost average incomes in Aberdeen and Aberdeenshire to around £34,600—the 13th highest in the UK.

However, the top performers also contain some of the poorest areas. Incomes in the Outer Hebrides are just £15,000 a year - 135th out of 170.

London contains four out of the five most prosperous areas in the country with Hammersmith & Fulham and Kensington & Chelsea topping the table with an average income of £133,000 a year.

Sian Hansen, executive director of the Legatum Institute, said: “The “Geography of Prosperity” index reveals that prosperity is about more than just wealth – it is about feeling that one’s life is worthwhile.

“The data shows that Scotland secures four top spots, predominantly due to very high levels of life-satisfaction. Residents of the Outer Hebrides have the highest levels of satisfaction with their lives in the whole country.

“Yet, areas like Aberdeen and Aberdeenshire rank highly because the oil industry boosts average earnings considerably, but so too because the area has reasonably high life-satisfaction.

“The index shows that while robust economic success can make an area prosperous, this in itself is not enough.

“Some of the most prosperous areas of the country are those where, regardless of their income, people have the opportunity to lead healthy, fulfilling and prosperous lives.”

The most prosperous places in the UK are:

Hammersmith & Fulham and Kensington & Chelsea Westminster Wandsworth Camden and the City of London Outer Hebrides (Eilean Sar)

The least prosperous places in the UK are: