Newspaper article The Evening Standard (London, England)

Income Gap Narrows between UK's Rich and Poor

Newspaper article The Evening Standard (London, England)

Income Gap Narrows between UK's Rich and Poor

Article excerpt

Byline: Kate Proctor Political Reporter

THE gap between the richest and poorest households in Britain is closing, according to the Office for National Statistics.

The wealthiest fifth of households took home nearly 12 times more in pre-tax income than the lowest-earning fifth in the financial year ending 2016. In 2015 top earners were taking home 14 times more income.

The report found that the average income for the richest fifth of households before taxes and benefits was PS84,700 per year and for the poorest fifth it was PS7,200.

However, after taxes and benefits were taken into account the ratio fell from 12 to one to four to one with the richest household incomes at PS63,300 as against PS17,200 for the poorest.

The ONS also found that the poorest households paid more than a quarter of their entire disposable income on indirect taxes such as VAT on alcohol and fuel compared with 14 per cent for the richest households. Researchers said that indirect taxes "cause an increase in income inequality". …

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