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Inequality at 40-year high

Press release issued: 19 July 2007

A new way of comparing poverty and wealth trends across Britain shows inequality has reached levels not seen for over 40 years. This is according to a report released by the Joseph Rowntree Foundation, conducted by researchers from the universities of Bristol, London and Sheffield.

A new way of comparing poverty and wealth trends across Britain shows inequality has reached levels not seen for over 40 years.  This is according to a report released by the Joseph Rowntree Foundation, conducted by researchers from the universities of Bristol, London and Sheffield.

A second report, published simultaneously, has found that the public believes the gap between rich and poor people is too large.

The researchers, including Dr Eldin Fahmy and Professor David Gordon of Bristol’s School for Policy Studies, found that households in already-wealthy areas have tended to become disproportionately wealthier and that many rich people live in areas segregated from the rest of society.  At the same time, more households have become poor over the last 15 years, but fewer are very poor.

Allowing more detailed comparisons than previously possible, the report contains comprehensive maps which are based on census and survey data illustrating the changes in poverty and wealth across Britain from 1968 to 2005.

The widening gap between rich and poor has meant that ‘average’ households (neither poor nor wealthy) have been decreasing in number. The report raises questions about what Britain will look like in ten years’ time if trends continue as they have.

Danny Dorling, who led the research, said: “Most interesting and certainly unexpected when this work began is the geography of those households who are neither rich nor poor. Over time it has become clear that there is less and less room in the south for them; they have either moved elsewhere, or become poor.”

The second report, from Michael Orton and Karen Rowlingson, studies people’s attitudes to inequality. It found that over the last 20 years, a large and enduring majority of people have considered the gap between high and low incomes too large. However, people are more likely to think that those on higher incomes are overpaid, than to believe that those on low incomes are underpaid.

This report also found that despite most people considering the gap between rich and poor people to be too large, attitudes to wealth re-distribution are complex. The authors conclude that while the public believe economic inequality is a problem, there is no clear public consensus about how this problem should be tackled.

Michael Orton said: “There is evidence that a high level of inequality may cause real socio-economic problems. There is widespread acceptance that some occupations should be paid more than others: but the gap between high and low paid occupations is far greater than people think it should be.”

Poverty, wealth and place in Britain 1968 to 2005 by Daniel Dorling, Jan Rigby, Ben Wheeler, Dimitris Ballas and Bethan Thomas from the University of Sheffield, Eldin Fahmy and David Gordon from the University of Bristol and Ruth Lupton from the University of London is published by The Policy Press.

Public attitudes to economic inequality by Michael Orton from the University of Warwick and Karen Rowlingson from the University of Birmingham is published by the Joseph Rowntree Foundation.

The data on each area of the country and definitions of how the Poverty, wealth and place in Britain report defines poverty and wealth are available on the University of Sheffield's website.

The Joseph Rowntree Foundation is one of the largest social policy research and development charities in the UK. It supports a research and development programme that seeks to understand the causes of social difficulties and explore ways of overcoming them.

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