Inequality in the UK

Richest 1% owns 20 times more than UK's poorest 20%

Katie Hill - Editor-in-Chief, My Green Pod

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Published: 18 September 2016

This Article was Written by: Katie Hill - My Green Pod

  

Theresa May should adopt a plan to ensure that companies are in the business of tackling inequality, Oxfam announced as it published a new briefing note setting out the shocking scale of inequality in the UK.

A ‘massive disconnect’

How to Close Great Britain’s Great Divide: The Business of Tacking Inequality reveals the richest 1% of the population now owns more than 20 times more wealth than the poorest 20% of the population – nearly 13 million people – owns, and there is a massive disconnect between people with money and those without.

The briefing warns that if action isn’t taken to reduce inequality then nearly 400,000 more households could be living in poverty by 2030.

‘Inequality is a massive barrier to tackling poverty and has created an economy that clearly isn’t working for everyone. The UK is one of the richest countries in the world, but it’s a nation divided into the ‘haves’ and have-nots’. Whilst executive pay soars, one in five people live below the poverty line and struggle to pay their bills and put food on the table.’

RACHAEL ORR
Head of Oxfam’s UK Programme

Oxfam is calling on Theresa May to set out how she will make good on her promise to close the gap between the ‘haves’ and the ‘have-nots’ by tackling bad behaviour by businesses and making the economy work for everyone.

Brexit reveals polarisation

The briefing says that the Brexit vote brought home just how polarised our country is, exposing strong and clear dividing lines that have been driven by decades of persistently high levels of economic inequality.

Many people believe they have little stake in society and feel completely shut out of politics and economic opportunity. The Prime Minister has called for more sharing of the proceeds of growth and the need to ensure we no longer leave people behind. She also criticised the irresponsible behaviour of some big businesses, one of the major driving factors of inequality in the UK.

Addressing the practises of unscrupulous business needs to be a central part of the government’s plans to even up the economy. That means closing wage gaps, incentivising investment in companies’ staff and making sure they pay their fair share of taxes.’

RACHAEL ORR
Head of Oxfam’s UK Programme

Healing the divide

Oxfam said that companies have a major role to play in healing divided Britain. Too often today a job is no guarantee of escaping poverty: in over half of the low income households in the UK at least one adult is working. Too many employees are trapped in low-paid jobs without a means of progression. Persistent low wages and the rising cost of living, especially housing costs, mean work doesn’t provide the route out of poverty it should do. For those with caring responsibilities, predominantly women, this is harder still.

‘Employers have a huge opportunity – they can play a key role in helping ensure work can be the viable route out of poverty it should be for millions of workers, by paying a living wage, honouring workers rights, and not using exploitative zero-hours contracts. At the same time the government needs to hold their feet to the fire.’

RACHAEL ORR
Head of Oxfam’s UK Programme

Research carried out for Oxfam by the London School of Economics, to be published later this year, will set out evidence that inequality is a major barrier to reducing poverty in the UK. It will show that poverty rates are generally higher when inequality is higher and increases in income inequality are associated with increases in income poverty rates.

Click here to download the briefing How to Close Great Britain’s Great Divide: The Business of Tacking Inequality.

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