The gap between rich and poor has grown since 1997, despite three successive Labour governments reforming the tax and benefit system in an attempt to reduce income inequality, the Institute for Fiscal Studies said .
Real household disposable incomes have grown 2 per cent a year under Labour.These gains were unequally distributed and the richest 2 per cent of households, with net incomes of more than £90,000 a year, moved even further ahead of the rest of the population. Incomes in these households grew by 3 per cent more than inflation a year on average since 1997 compared with under 2 per cent for the vast majority of the rest of the income distribution.This rise in overall inequality was exacerbated in recent years by the low growth in average incomes. Almost all households have seen real income growth of under 1 per cent with only the top 10 per cent enjoying significantly faster income growth.
Meanwhile SOYMB reads that in Australia research found a ''growing gulf between rich and poor'', with the benefits of economic growth going disproportionately to the rich. The research looked at the top 10per cent of earners, the top 1 per cent and the top 0.1 per cent, whom Professor Leigh described as ''the rich, the super rich and the super duper rich''.
Australia's top 1500 earners have tripled their share of income.Report Australian National University economist co-author said he did not think the gap was going to stop growing.