Rich getting richer as everyone else is getting poorer, Government's own figures reveal
Jun 26, 2014 15:49
By Mark Ellis / DailyMirror UK
The latest statistics from the Office for National Statistics shows that the household disposable income increased ONLY for the richest fifth of homes
The rich are getting richer while everyone else gets poorer under the Tory-led Coalition, official figures revealed today.
The latest statistics from the Office for National Statistics shows that the household disposable income increased ONLY for the richest fifth of homes.
Before taxes and benefits the richest fifth of households had an average income of £81,300 in 2012-13, almost 15 times greater than the poorest fifth who had an average income of £5,500.
And the richest fifth of households saw their income grow by £940 between 2011/12 and 2012/13, while the disposable income of all the other groups fell by around £250, with the poorest households experiencing the sharpest fall of £381.
Frances O’Grady, TUC general secretary, said: “The gap between rich and poor is growing again after a brief post-crash pause.
"Last year the richest households got richer, while everyone else got poorer.
“This is further proof that most people are failing to have a fair share in the benefits of recovery.
“The return of rising inequality should worry everyone as it suggests that nothing has been learned from the financial crisis despite the huge fall in living standards that so many people are still experiencing.”
Meanwhile, a new report shows that pay deals have slowed down in recent months, with many public sector workers seeing their wages frozen.
A study by pay analysts XpertHR showed the median increase in the three months to May was 2%, down from 2.5% in the first quarter of the year.
But settlements in the public sector were around 1%, with one in seven workers having their pay frozen.
Workers in manufacturing and production industries were paid a median rise of 2.5%, the analysis of almost 300 deals showed.
Two out of five agreements were worth the same or more than the 2.4% May RPI inflation figure.
XpertHR pay and benefits editor Sheila Attwood said: “Employers are continuing to take a cautious approach to pay reviews, with settlements of 2% in the private sector at the same level as seen over the latter part of 2013.
“Despite some positive news on the economy, pay award levels are expected to remain subdued for the time being.”