And From the BBC The rapidly rising incomes of the richest 10% of the population are the major factor contributing to growing inequality in Britain.
According to the Institute for Fiscal Studies (IFS), an independent think tank, the incomes of the top 10% have risen faster than those of the population as a whole since Labour came to power in 1997. And that increase has been particularly concentrated at the very top of the income distribution - among the half million individuals in the top 1% of the income scale.
According to the Institute for Fiscal Studies (IFS), an independent think tank, the incomes of the top 10% have risen faster than those of the population as a whole since Labour came to power in 1997. And that increase has been particularly concentrated at the very top of the income distribution - among the half million individuals in the top 1% of the income scale.
Between the 1996-97 tax year and 2004-05, the income of the richest 1% grew at an annual rate of 3.1%, compared to 2.3% for the population as a whole, and the income of the top 0.1% grew by 4.4%. The stock market boom has boosted the income of the rich
The growth was particularly strong in the Labour's first term, where the income of the super-rich grew by 8% per year. The IFS suggests that the rising stock market between 2005 and 2007 may have further boosted the income of the rich - a view confirmed by the 20% increase in the wealth of those in the Sunday Times rich list in 2007.
The growth was particularly strong in the Labour's first term, where the income of the super-rich grew by 8% per year. The IFS suggests that the rising stock market between 2005 and 2007 may have further boosted the income of the rich - a view confirmed by the 20% increase in the wealth of those in the Sunday Times rich list in 2007.
In contrast, those at the bottom of the income distribution - and especially the poorest 15% of households - saw their income go up at below-average rates, and in some cases even fell.
"It seems there are two interesting phenomena, at either end of the income scale, that are driving trends in overall income inequality" said IFS's Mike Brewer
Overall, the gap between the bottom 10% and the top 10% has widened. The top 10% of individuals in the UK now receive 40% of all personal income, while the bottom 90% receive 60%. The top 0.1% get 4.3% of all income - the highest figure in the UK since the 1930s, and three times as much as they received as a share of income in 1979.
The report says that "income inequality is at its highest level since the late 1940s".
The average income of the top tenth, of £49,950, was double the average income of all taxpayers (£24,769) and triple that of all households (£15,000), one-third of whom pay no tax.
To get into the top 1%, an individual needed an income of £100,000, and to get into the top 0.1%, £350,000. The average income of £155,000, while the top 0.1% of taxpayers had an average income of £780,000.
To get into the top 1%, an individual needed an income of £100,000, and to get into the top 0.1%, £350,000. The average income of £155,000, while the top 0.1% of taxpayers had an average income of £780,000.
WHO ARE THE VERY RICH?
Male: 90%
Middle-aged: 80%
Live in London/SE: 70%
Work in finance, property, accountancy, law: 60%
Average income: £785,000
Source: IFS, top 0.1% of GB taxpayers, 2004/5
Male: 90%
Middle-aged: 80%
Live in London/SE: 70%
Work in finance, property, accountancy, law: 60%
Average income: £785,000
Source: IFS, top 0.1% of GB taxpayers, 2004/5
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