Trends in inequality in the UK
Income inequality in the UK narrowed until 1979 when it had fallen to 24% (0.24). It then increased dramatically to a 2010 peak of 36% (0.36). The UK鈥檚 current Gini coefficient increased from 34.4% to 35.7%, comparing the financial year ending 2022 with 2021.(Source: Office for National Statistics).
Income inequality trends
- In 2022, households in the top 20% of the population had an average Income remaining after tax and social security deductions to be spent or saved as one wishes. of 拢83,687, whilst the bottom 20% of the population had an average disposable income of just 拢13,218. This means the richest 20% have 6.3 times more to spend or save as they wish than the poorest 20% of the population.
- According to the ONS, median (middle point) disposable income for the poorest 20% fell by 3.8% (to 拢14,500) between 2021 and 2022 but increased for the top 20% of people by 1.6% (to 拢66,000).
- In 2022, the top 20% of society had 36% of the income whereas the bottom 20% had only 9% of the total income.
Wealth inequality trends
- Oxfam reported in 2023, that the richest 1% of people in the UK held more wealth than 70% of the rest of the population together.
- The richest 50 families in the UK hold more wealth than the bottom 33.5 million people.
- If trends in income inequality continue, by 2035, the wealth of the richest 200 families will be larger than the whole UK Gross Domestic Product (GDP).
- Wealth inequalities tend to be wider than income inequalities.
Source: Equality Trust