The Financial Times reports that the poorest fifth of British households are among the most economically deprived in western Europe and suffer levels of poverty on a par with those in the former Eastern bloc, according to new research by the High Pay Centre, an independent UK think-tank, which has published an analysis of data from the OECD.
“Life is much worse here than it is for the poorest fifth in virtually every other northwest European country”.
The High Pay Centre found that, with average household incomes of $53,785, the richest 20 per cent in the UK were the third richest in their bracket of all EU countries measured by the OECD, lagging behind Germany and France. However, a very different story applied to the bottom 20 per cent in the UK whose incomes were much lower than in other, more equal countries with a similar average income. The OECD calculates the average income of the bottom fifth of UK households at just $9,530, much lower than the poorest 20% in France ($12,653), Germany ($13,381), Belgium ($12,350), the Netherlands ($11,274) and Denmark ($12,183).
Poor Britons’ living standards are much closer to those of the poorest in countries such as Slovenia and the Czech Republic, the High Pay Centre says.
The Luxembourg Income Study Database agree the poor in the UK have lower living standards than the poor in the Netherlands, Sweden, Norway, Finland and Denmark. According to Eurostat, the EU’s statistical agency, gross domestic product per person is lower in West Wales and the Valleys than it is in Poland. Similarly, GDP per person in Tees Valley and Durham is lower than in the Czech Republic.
Deborah Hargreaves, director of the High Pay Centre, said: “These figures suggest we need to be more concerned about inequality and how prosperity is shared, as well as average incomes or aggregate measures like GDP. The fact that the rich are richer in the UK than many other countries hides the fact that the poor are poorer.”
The High Pay Centre suggests the difference is the share of income going to the top 1 per cent. In the UK, this richest group takes 13 per cent of total income, much more than in most other western European countries.
“Life is much worse here than it is for the poorest fifth in virtually every other northwest European country”.
The High Pay Centre found that, with average household incomes of $53,785, the richest 20 per cent in the UK were the third richest in their bracket of all EU countries measured by the OECD, lagging behind Germany and France. However, a very different story applied to the bottom 20 per cent in the UK whose incomes were much lower than in other, more equal countries with a similar average income. The OECD calculates the average income of the bottom fifth of UK households at just $9,530, much lower than the poorest 20% in France ($12,653), Germany ($13,381), Belgium ($12,350), the Netherlands ($11,274) and Denmark ($12,183).
Poor Britons’ living standards are much closer to those of the poorest in countries such as Slovenia and the Czech Republic, the High Pay Centre says.
The Luxembourg Income Study Database agree the poor in the UK have lower living standards than the poor in the Netherlands, Sweden, Norway, Finland and Denmark. According to Eurostat, the EU’s statistical agency, gross domestic product per person is lower in West Wales and the Valleys than it is in Poland. Similarly, GDP per person in Tees Valley and Durham is lower than in the Czech Republic.
Deborah Hargreaves, director of the High Pay Centre, said: “These figures suggest we need to be more concerned about inequality and how prosperity is shared, as well as average incomes or aggregate measures like GDP. The fact that the rich are richer in the UK than many other countries hides the fact that the poor are poorer.”
The High Pay Centre suggests the difference is the share of income going to the top 1 per cent. In the UK, this richest group takes 13 per cent of total income, much more than in most other western European countries.
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