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 disposable (or net) income of £9,644 (this includes wages and cash benefits, and is after direct taxes like income tax and council tax, but not indirect taxes like VAT). The top 10% have net incomes almost nine times that (£83,875). As can be seen from the graph, income inequality is much starker at the top of the income scale, with the group with the 9th highest incomes making only 61% of the top 10%’s income.

Inequality is much higher amongst original incomes than disposable incomes with the poorest 10% having on average an original income of £4,436 whilst the top 10% have an original income 24 times larger (£107,937)1.

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 disposable (or net) income of £9,644 (this includes wages and cash benefits, and is after direct taxes like income tax and council tax, but not indirect taxes like VAT). The top 10% have net incomes almost nine times that (£83,875). As can be seen from the graph, income inequality is much starker at the top of the income scale, with the group with the 9th highest incomes making only 61% of the top 10%’s income. Inequality is much higher amongst original incomes than disposable incomes with the poorest 10% having on average an original income of £4,436 whilst the top 10% have an original income 24 times larger (£107,937)1.