Income inequality in the UK - watch this shocking new video
Income inequality has become an increasingly important political issue in recent months. Our new 3 minute animation outlines the size of the paygap and compares the situation with other European countries, where similar levels of total income are shared much more evenly, meaning that people at the bottom and in the middle have more.
The film highlights how:
pay for top bosses nearly doubled over the past decade, while ordinary workers wages remained the same
a FTSE 100 CEO earns four times as much in one year as the average worker does in their entire lifetime
if total incomes in the UK were divided as evenly as in Denmark or the Netherlands, 99 per cent of households would be better off by nearly £3,000 per year
This is important because wealth ownership in the UK is incredibly unequal and inherited wealth only goes to the richest few. Most people don’t own any wealth whatsoever, while only 13% inherit anything. The original data come from HMRC statistics on inherited estates, and the Attitudes to Inheritance Survey.
The main figure comes from the Council of Mortgage Lenders from Dec 2011,http://www.cml.org.uk/cml/publications/ newsandviews/104/390. The restriction to those under-30 is because at older ages people are more likely to be ‘returners’ (i.e. we are less confident that they are truly first-time buyers).
This information comes from a 2011 report by Dr Eleni Karagiannaki at LSE (‘Recent Trends in the size and the distribution of inherited wealth in the UK’). The original data come from HMRC statistics on inherited estates, and the Attitudes to Inheritance Survey. We define ‘real inheritance’ as any inheritance of over £2,000.