The Organisation for Economic Co-operation and Development [OECD] has launched a report today entitled "Divided We Stand: Why Inequality Keeps Rising" analysing the income gap between the rich and poor of 29 OECD countries.
The report has highlighted that income inequality among working-age people has risen faster in the UK than any other OECD country since 1975. This inequality gap peaked in 2000, fell slightly and has risen again since 2005.
The UK annual average income of the top 10% in 2008 was almost £55,000, almost 12 times higher than that of the bottom 10%, who had an average income of £4,700. This is up from a ratio of 8 to 1 in 1985.
Key recommendations of the report to counter income inequality include:
1. The provision of freely accessible and high-quality public services, such as education, health, and family care. Public services have had an impact in reducing inequality.
2. Creating more and better jobs that offer good career prospects and a real chance to people to escape poverty.
3. Upskilling of the workforce. The report identifies investment in people must begin in early childhood and be followed through into formal education and work.”
The OECD Secretary-General Angel Gurria said:
"This study dispels the assumptions that the benefits of economic growth will automatically trickle down to the disadvantaged and that greater inequality fosters greater social mobility...There is nothing inevitable about high and growing inequalities."
To read the report click here.
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