Economic news

Income gap between people from well-off and poor families has increased nearly twofold

The income gap is broadening in case of adults coming from richer families compared to those from poorer ones, as research shows.

According to the data from the Institute for Fiscal Studies back in 2012 a male over 40 whose parents belonged to the richest segment got the pay of 88% more versus people from the poorest social group. Earlier in 2000 the same gap made up only 47%.

This new research is going to raise worries even more over reduction of social mobility in the United Kingdom and stoke the fierce discussions concerning income disparity between people of the same or different generations.

Theresa May becoming a PM last year pledged to combat this gross injustice of Britain, likewise Jeremy Corbyn of Labour Party put inequality reduction at the core of their campaign.

In 2012 a male of 42, whose parents belonged to the wealthiest fifth when they were 16, earned on average £1,300 per week in current day money, compared to £680 if their parents were from the impoverished fifth, it’s an 88% gap.

Equivalent data of 2000 shows income of £1,000 in current day money for a man with a rich background, against £720 for people from poorer background, that is a 47% gap.

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