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”
Mick
Well, when a Newsbot calls the affluent ‘thieves’, then any correction is an excuse.
But what else from a Newsbot wose co-operative MPs have to ride Labour to get to power, but he bitches and moans about Labour all day anyway.
What a piece of Newsbot.
Newsbot9
Nope, I call thieves thieves. So sorry I don’t stereotype.
Keep on talking about your problems, swapping in other names to make it look like you have a point.
Mick
‘So sorry I don’t stereotype.’
Oh, of COURSE I believe you!! Keep stereotyping those big earners as thieves, the kind of bigotry keeping you out of any power loops.
Newsbot9
Nope, I call you a thief a thief.
Keep on highlighting the fact your far right have no MP’s, and many of you are wanted criminals.
I have, again, nothing against earned income. And fair tax is not the bitter hate you display for anyone suggesting you pay tax.
But keep on standing up and being counted for your leeches. Gotta bleed the UK in your ideology!
Smithy
You have nothing against earned income? Why did you accuse me of stealing food from starving children when I said I earned a large salary?