© AFP Photo / Bertrand Guay
The UK's super-rich, the top 1% of earners, now pocket 10 pence in every pound, while the bottom half have seen their share of the nation's wealth drop in the last 15 years. Middle earners have also seen their earning power stagnate.
Inequality in the UK has increased sharply in the last decade and a half, according to a study by the think tank, the Resolution Foundation, 'Squeezed Britain 2013', which is to be published next week.
According to Resolution's analysis the top 1% on earners have seen their share of the nation's wealth jump from 7% in the mid-1990s to 10% today, meaning that the top 1% of earners now pocket 10p in every pound of income paid in Britain. The bottom 50% have seen their share of the pie drop from 19% to 18%, it was reported in the Observer.
Although there was a slight reduction in top earning between 2009 and 2011, the research concludes this is most likely because the highest paid employees have brought their earnings forward to benefit from reduced income tax rates, which come into force this April. The Chancellor, George Osborne, is lowering the top tax rate for all earnings over £150,000 from 50p to 45p.