A modest redistribution of wealth from the top to the bottom would give a pay rise of £40 a month to the lowest paid 25 per cent of the income scale, according to a new report from the High Pay Centre.
A modest redistribution of wealth from the top to the bottom would give a pay rise of £40 a month to the lowest paid 25 per cent of the income scale, according to a new report from the High Pay Centre.
The share of national income going to the top 1 per cent of the income distribution has more than doubled since 1979 to 14.5 per cent from 6 per cent.
At the same time wages for most of the population have stagnated, barely keeping up with inflation.
And government plans to give a tax break worth up to £2.7 billion to the top 1 per cent when the 50p rate is abolished in April means take home pay for the rich will become even more disproportionate, the report says.
But if those earning more than £150,000 took a 10 per cent pay cut and this went directly to the bottom 25 per cent, they would get a 55 per hour pay rise to £7.35, taking them closer to the national living wage of £7.45.
As well as being fair, this would inject spending power into the economy for those at the bottom, the report says.
Currently taxpayers subsidise low-paying employers to the tune of £4 billion with in-work cash transfers a year, it adds.
Inequality at a glance
. In 1979 the top 0.1 per cent took home 1.3 per cent of the national income; by 2007 this had grown to 6.5 per cent.
. The Gini co-efficient, an internationally recognised measure of inequality, was 0.240 in the UK in 1978, since then it has been increasing and in 2010/2011 it was 0.338.
. Someone on an annual salary of £500,000 takes home more in a month than the average person takes home in a year.
61 Responses to “Modest redistribution of wealth would give £40 a month boost to lowest paid”
wehavetoleavetheeueverysoon
The main parties will never do this, at least UKIP have some policies to help e.g. flat tax rate
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sonny
UKIP! That’s a joke, their pathetic flat rate 30% tax plan will give MORE money to the rich, think about ti, the rich now pay 50% soon to be 45%…UKIP are more right wing than the tory scumbags. Plus putting a link to some horrible nationalist epetition shows you are simply a little englander hoping to preserve some outmoded 1950’s view of the country. Farage is a sexist, racist rat.
Raging Leftie
Tax breaks to the richest 1% – it says everything about this ConDem government doesn’t it?
Selohesra
Actually the rich pay 52% soon to be 47% – dont forget NI. Still perhaps you find it easy spending other peoples money
Newsbot9
Indeed, they have a policy of “helping” the rich pay far less tax, and the poor far more. So yes, you would indeed accelerate this trend.
Keep spamming your economic sabotage!