Explaining the data: These figures were calculated by the New Economics Foundation (NEF) as part of their ‘Real Britain Index’ - http://www.realbritainindex.org/. NEF calculated a more detailed inflation figure for each decile (group of 10%) of the UK population from richest to poorest, based on their spending habits (for example, the poorest decile spend a higher proportion of their income on food, so are hit harder by food price increases, but are less likely to be affected by changes in the cost of luxury goods). NEF then used these inflation figures to calculate the year-on-year change in the incomes of each decile. Since the data used in this infographic was published, inflation has fallen, giving hope that real incomes of poorer households will rise. But this will also depend on factors such as low pay and cuts to social security.
These figures are taken from data compiled by Eurostat, the data agency of the European Union. Although we have only shown figures for a selection of countries commonly compared with the UK in terms of equality and economic success, there is no other country in the whole of the EU where the richest region is nearly 5 times as rich as the poorest. The currency used by Eurostat is the ‘Purchasing Power Standard’, an economic measurement that accounts for differences in the value of different currencies, as well as the different costs in different areas. Full data is available fromhttp://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tgs00005&plugin=1
The data on UK billionaires is taken from the Sunday Times rich list, which can be read on-line, for a subscription fee. The data on executive pay was compiled for the High Pay Centre by Incomes Data Services, who looked at pay for Directors of FTSE 350 companies, the 350 biggest companies listed on the London Stock Exchange. You can read the full report here. The Office for National Statisticsrecords figures for wages across the whole UK workforce. Both directors’ and workers’ pay has been adjusted for inflation. Finally, the number of people given at least 3 days worth of food by a Trussel Trust foodbank is taken from the Trust’s website.