Income Inequality in the UK

INCOME INEQUALITY IN THE UK There is a vast difference between the average income of the richest, and the rest of the UK' Top 0.1% Top 1% Top 10% The other 90% £12,969 £79,196 £271,888 £1,000,970 Average full time pay in 2012 £4.3m £26,500 CEO of a FTSE 100 company Average UK worker But the UK has not always been so unequal Income inequality is measured by Gini coefficient A Gini coefficient of 0 = perfect equality 2012 0.34 1977 0.24 The UK is now one of the most unequal countries in the developed world If inequality hadn't changed since 1977, 2010/11 salaries would be very different £2578 £1984 E1 221 £971 Bottom fifth Middle fifth Top fifth The majority of people today would have a better income if we lived in a more equal society ´£8124 Notes / Source L.Average income in 2009 (latest available figures) - World Top Incomes Database | 2. Manifest/MM&K Total Remuneration Survey | 3. ONS, Annual Survey of Hours and Earnings | 4. Income inequality is according to the Gini Coefficient. The Gini Coefficient has been calculated using incomes before housing costs have been deducted. Years refer to calendar years up to and including 1992 and to financial years from 1993-94 onwards. Source: Cribb J. Hood A, Joyce R, Phillips D. Living standards, poverty and inequality in the UK: 2013. Institute for Fiscal Studies, London 2013. | 5. All income is equalized disposable household income. Source:Authors' calculations based on ONS, Part of The Effects of Taxes and Benefits on Household Income, 2010/II Developed by Rosie Roche and The Equality Trust | www.equalitytrust.org.uk =THE EQUALITY TRUST