Wednesday, February 27, 2019

The figures show the inequality

Income inequality across Britain increased over the course of 2018 as cuts to benefits damaged the finances of poorer households while the wealthiest in society got richer.
Average income of the poorest fifth of the population shrunk by 1.6% last year. The average income of the richest fifth rose by 4.7%.

The median household disposable income growth had plateaued last year at £28,400, ending four years of steady increases for the strength of household finances.

Household benefits for millions of families, including those in work, have been frozen over the last four years under a policy launched by the then chancellor, George Osborne, in 2015. The policy, in place until 2020, means household benefit payments do not rise in line with inflation. The Resolution Foundation thinktank estimates the average lower-income family with children will be £200 worse off this year as a consequence. 
The highest 1% of earners in the country have, however, managed to protect their share of total household disposable income over the past seven years, with the richest 1% of the population controlling 7.1% of total household disposable income.

No comments: