SYSTEMIC INEQUALITY is an issue that won’t be solved unless real change to system is made, the current government are hard-line to anyone who wasn’t born in wealth or gained it through whatever means necessary. Continued cuts to the NHS, benefits and other vital public services affect the poorest substantially more than the richest as they often rely on the services they provide, whereas the wealthy can afford to pay private companies huge sums in return for those services.
The think tank, Resolution Foundation, have stated that inequality is Set To Rise to is highest point since the 80s.
Even though it has been high, the levels of inequality have in fact fallen in recent years.
What’s to blame?
There are multiple reasons why, but the Resolution Foundation have stated that Incomes of low earners are set to stagnate for at least another three years, whilst the income for high earners is set to rise next year. The research shows that high inflation from Brexit will see household incomes decrease next year and be at its lowest since 2012, when the UK was still recovering from the global recession.
Families deemed to be “just about managing” will have seen their incomes rise by just £300 (2 per cent) between 2010 and 2020, compared to a £3,100 rise (10 per cent) for higher earners.
Along with Brexit, the government’s welfare policy has also been blamed for the decrease in income for low earners. The Resolution Foundation have said that the policies designed to boost income have been more than offset by the £14 billion worth of welfare cuts.
The key aspect is that the foundation’s director Torsten Bell stated that whilst there are multiple factors that are beyond the government’s control, the key driver in low living standards is policy decision.
They suggested that the government should reverse some of the cuts through higher income tax and redistribute the wealth more equally. They also suggested that action is to be taken on private rent as it would increase household income by more than a quarter.
