AN ECONOMIC CRISIS? NOT IF YOU'RE RICH.
Byline: ALICE CACHIA
THE RICHEST households in the UK have seen an increase in disposable income that's four times greater than the poorest households, new figures show.
the poorest householdsincome of Official data released by the Office for National Statistics reveal the income gap between the richest fifth and the poorest fifth has grown by PS12,524 a year in the last two decades.
A disposable income is the amount of money that households have available for spending and saving after taxes have been deducted.
It includes earnings from employment, private pensions and investments as well as government benefits.
The figures show that in percentage terms, the poorest 10 per cent of have a disposable just PS26 a day households have seen the biggest rises in disposable income. But in absolute terms, the gap between rich and poor has continued to grow rapidly.
In 1996/97, the richest fifth of households had an average disposable income of PS48,939.
That has risen by just over a third to PS65,542 a year in 2016/17, even once inflation is taken into account.
The poorest fifth, meanwhile, have seen disposable income rise from PS8,669 to PS12,748.
That means that the increase in disposable income for the richest 20 per cent of households has been more than four times greater than the increase in disposable income for the poorest 20 per cent.
Meanwhile, the richest 10 per cent now have a disposable income that's nine times greater than the poorest 10 per cent of households.
The national average disposal income stands at PS35,117 - but for the poorest 10 per cent it is just PS9,558.
In comparison, the richest 10 per cent of households now have a disposal income of PS87,711, or PS240 a day.
Interestingly, disposable income is also affected by whether or not you have kids - but how it affects you depends on how rich you are.
Since 1996/7, cent of households their annual increase. by The poorest 20 per cent of households with children have a disposable income of PS15,310, while the poorest 20 per cent of households without children have PS11,657.
This means that poorer households have higher incomes if they have children than those that don't.
One reason for this may be that because adults with children receive child benefits, it raises their disposable income. The opposite becomes true, however, as household disposable incomes increase.
the poorest 20 per have seen disposable income just PS4,079
The poorest 10 per cent of households have a disposable income of just PS26 a day
Since 1996/7, the poorest 20 per cent of households have seen their annual disposable income increase by just PS4,079
The UK's average household disposable income in 1996/97 and in 2016/17
Graphic by MARIANNA LONGO
The UK's average household disposable income in 2016/17
The difference between 1996/97 and 2016/17: +PS16,603 +PS10,365 +PS8,068 +PS6,979 +PS4,079
The richest 20% The second richest 20% The third richest/poorest 20% The second poorest 20% The poorest 20%
PS8,669 PS13,629 The richest 20% The second richest 20% The third richest/poorest 20% The second poorest 20% The poorest 20%
|Printer friendly Cite/link Email Feedback|
|Publication:||Evening Chronicle (Newcastle, England)|
|Date:||Jan 25, 2018|
|Previous Article:||Mini maestros in harmony! Produced by students of Bridgewater Primary School, Newcastle upon Tyne.|
|Next Article:||All aboard the Nutty Train! What's On Editor GORDON BARR GOES ONE STEP BEYOND TO TELL YOU OF A SPECIAL MADNESS GIG HAPPENING THIS SUMMER.|