General Article The scale of economic inequality in the UK

Topic Selected: Poverty
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UK income inequality

The UK has a very high level of income inequality compared to other developed countries.

Households in the bottom 10% of the population have on average a net income of £9,277. The top 10% have net incomes over nine times that (£83,897). As can be seen from the graph, income inequality is much starker at the top of the income scale, with the group with the ninth highest incomes making only 60% of the top 10%’s income. Inequality is much higher amongst original income than net income with the poorest 10% having on average an original income of £4,467 whilst the top 10% have an original income 24 times larger (£107,597).1

Differences within the top 1%

The top 1% have incomes substantially higher than the rest of those in the top 10%. In 2012, the top 1% had an average income of £253,927 and the top 0.1% had an average income of £919,882.2

How income is shared

The poorest fifth of society have only 8% of the total income, whereas the top fifth have 40%.

Income sprea...

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