Trends in UK Income Inequality | tutor2u Economics

Source: The distribution of household income 1977 to 2006/07, Statistics Commission, December 2008

In a week dominated once more by macroeconomic headlines it is important not to lose sight of some of the deeper structural changes taking place within our economy and society. The distribution of income and wealth and the extent to which the benefits of economic growth and development are dispersed across society remains one of the the most important issues facing every country - the UK is no exception.

The Office of National Statistics has just released the latest data on household income and the inequalities of pre and post tax income across households from bottom to top of the income scale. The figures suggest that the progress made by Labour in reversing the steep rise in relative poverty from 1977 through to the turn of the 1990s has faltered. The BBC reports that the UK income gap ‘same as in 1991’. Britain continues to have above average levels of income inequality - our gini coefficient is the 9th highest in the European Union.

The full report which is available as a pdf file can be downloaded here

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