UK trends
UK income inequality trends (using the Gini coefficient)
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The graph above shows a 45 year trend in income inequality in the UK (as measured by the Gini coefficient*). In the 1960s income inequality was relatively stable (data not shown) and in the 1970s (up to 1978) income inequality actually reduced. From 1979 until the early 1990s there was a steep rise in income inequality. Since then the Gini coefficient has fluctuated but is even higher now than it was in the early 1990s. In the last year, to the end of 2021/22, the Gini coefficient and most other measures of income inequality have increased in the UK.
The UK now has one of the highest levels of income inequality in Europe, as shown in the graph below.
Income inequality in the UK compared to European OECD countries (using the Gini coefficient)
click on graph to expand
Note
* The Gini coefficient measures the dispersion of the whole income distribution (rather than just comparing the extremes) and has a theoretical value ranging from 0 (representing complete equality in income) to 100 (representing complete inequality in income).
The measure used here is based on equivalised disposable income for an individual. This is based on a modified OECD scale with the reference point being a two adult household with no children.
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