We read consistently that inequality in the UK is on the rise, but it would appear the actual situation is more complex.
Consumption inequality is far lower than pre-tax income inequality because the top 40 per cent of earners pay more in than they get out, while the bottom 60 per cent get more out than they pay in.
After tax the richest fifth of the UK population has only four times as much money to play with as the poorest fifth.
Furthermore, 80 per cent of people born into households below the poverty line escape poverty when they reach adulthood.
Blueprint brief – 5th February 2014
Source: Matt Ridley, The Times, 3rd February 2014