Crisis hits the poor hardest

Crisis hits the poor hardest: OECD

  • Income inequality increased by more in the first three years of the crisis to the end of 2010 than it had in the previous twelve years
  • The welfare state has cushioned the blow for many but warns that further social spending cuts in OECD countries risk causing greater inequality and poverty in the years ahead
  • The richest 10 per cent of the population in OECD countries earned 9.5 times the income of the poorest 10 per cent in 2010, up from 9 times in 2007

Living standards

Living standards, poverty and inequality in the UK: 2012 – IFS

  • Over the past fifty years, average household net incomes have grown by about 1.7% per year in inflation-adjusted terms
  • Average private incomes started falling in 2008-09
  • Average household pre-tax-and-benefit income fell over 7% between 2007-08 and 2010-11, after accounting for inflation
  • Income inequality in the UK fell sharply in 2010–11.

Jubilees compared: IFS

The celebrations in 2002 passed me by – I can’t really remember anything except perhaps Brian May performing. I have much stronger recollections of 1977 – and the IFS has produced a handy briefing that helps (and corrects) my fading memory

Jubilees compared: incomes, spending and work in the late 1970s and early 2010s

  • In monetary terms, we are twice as well off now as we were just 35 years ago – but the increase is accompanied by a very big increase in inequality
  • In the late 1970s, one pound in every four spent, and nearly one pound in every three for pensioners, went on food. That is now down to less than 13% for those of working age and 18% for pensioners.
  • In 1977, fewer than 60% of women aged between 25 and 54 were in paid employment: this had risen to 74% by 2011.
  • At older ages, a combination of early retirement and leaving the labour market for reasons of sickness or disability has seen a big reduction in the proportion of men between 55 and 64 who remain in work. Whilst this proportion has been recovering somewhat in recent years, it remains one of the great challenges of economic and social policy that unprecedented increases in longevity have been accompanied by earlier labour market exit.
  • Particularly for men, there have bee big reductions in the proportions of those under 25 in work.