You are here: Home - Saving & Banking - News -

Disposable incomes rise for richest fifth households only

0
Written by:
26/06/2014
Disposable income fell for all but the richest fifth of UK households from 2011-12 to 2012-13, official figures reveal.

According to the Office for National Statistics (ONS), there was a slight increase in income inequality between 2011-12 and 2012-13 as disposable income for the poorest fifth of households fell from £11,503 to £11,122 while for the richest fifth it grew from £58,109 to £59,049.

Disposable income for second, third and fourth quartile households fell by an average of £212.

Before taxes and benefits the richest fifth of households had an average income of £81,300, almost 15 times greater than the £5,500 average income of the poorest fifth.

Frances O’Grady, secretary of the Trade Union Congress (TUC), said: “The gap between rich and poor is growing again after a brief post-crash pause. Last year the richest households got richer, while everyone else got poorer. This is further proof that most people are failing to have a fair share in the benefits of recovery.”

Cash benefits made up 56.4 per cent of the gross income of the poorest fifth of households (£7,200), compared with 3.2 per cent (£2,700) of the income of the richest fifth. The richest households paid 35.1 per cent of their gross income in taxes, while the poorest paid 37.4 per cent.

O’Grady said: “The return of rising inequality should worry everyone as it suggests that nothing has been learned from the financial crisis despite the huge fall in living standards that so many people are still experiencing.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Help to Buy: More than 2,000 completions under equity loan scheme in May

More than 2,000 properties were purchased using a Help to Buy equity loan in the last month, figures from the...

Close