UK Pay Gap Widens

The gap between top and mid-range earners in Britain is likely to widen, the National Institute for Economic and Social Research, a think tank, said

The very highest earners have seen the fastest growth in their wages, with the top 1 percent's pay packet growing 68 percent faster than that of the median earner from 1977 to 2002. The median earner is the person in the middle of the wages range, with half of people earning more than him or her and half earning less. The trend was more pronounced the higher the earnings were, with the top 0.5 percent growing 84 percent faster than the median over the same period. The calculations were based on weekly earnings and would have been higher if they had included annual bonuses.

"The prospect of income inequality is likely to rise again, driven both by structural change and governmental policies," said Jonathan Portes, director of the NIESR. Spending cuts planned to tackle Britain's budget deficit will further boost the gap between the richest and poorest.

http://uk.reuters.com/article/2011/11/01/uk-britain-inequality-idUKTRE7A000T20111101