Equality is Better For Everyone

Who Are We?

Affiliated to the Equality Trust.

Working to reduce Income Inequality across the UK.

Many more like us across the country:

Birmingham

Bristol

Cumbria

Exeter

Hampshire

Leeds London

OxfordshireSouth Wales Sussex

York Norfolk

Sheffield Suffolk Swindon

The Spirit Level

Richard Wilkinson and Kate Pickett

Social Problems in Britain

North West Inequality

•From 2005 - 2008, the North West had the largest number of children living in poverty of any region in the country.

•During that period, we had 1.4 million children in poverty. This is greater than the whole of London, which had 1.3 million.

•Compare to the South East, which has the highest population (8.1 million), but had 300,000 less children in poverty. Their figure was 1.1 million.

•18% of pensioners in the UK were living in poverty over this three year period.

Child Poverty

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

South East London North West

Households Below The Poverty Line

How Unequal Are We?

£26,000

£4,000,000

£0

£500,000

£1,000,000

£1,500,000

£2,000,000

£2,500,000

£3,000,000

£3,500,000

£4,000,000

£4,500,000

Average NW Earner Avergae FTSE 100 Earner

Inequality of Average Income

The Pay Gap in the UK in 2011/12

The Pay Gap Widening

1986 - £2011 in £,adjusted

12

The Pay Gap Widening – more • In the last 10 years 40% of total increase in income has gone to

the top 10% whereas only 20% of total increase in income has gone to all the bottom 50% earners in the UK.

• At the same time the top rate of income tax for the best paid has fallen from 60% in the 1980s to 45% now.

• IN 2011 the top 1% pocketed 10p of all earned income whereas the poorest 50% took home only 18p in the pound between them all

• If the Statutory Minimum Wage (since it started) had kept up with the same percentage of increase as top earners it would now be set at 18.90 pounds not the current 6.19 pounds

Inequality Prime Cause of Crash

• Haldane, who oversees the City for the Bank of England, said Occupy acted as a lever on policymakers despite criticism that its aims were too vague. He said the protest movement was right to focus on inequality as the chief reason for the 2008 crash, following studies that showed the accumulation of huge wealth by a few was directly responsible for the domino-like collapse of the banking sector in 2008.

• He states individuals who accumulate huge property and financial wealth do so at the expense of other members of society who can then cannot afford to consume except by getting into debit.

• Over concentration of economic power also distorts democracy – wealth buys government through campaign contributions, lobbying and the revolving door system.

Growth Will Continue to Deepen Income Inequalities in the UK

• Living standards for low- and middle-income households will fall until 2020, even if the country enters a golden period of steady economic growth, (1.5% to 2015 and then 2.5% to 2020) (Resolution Foundation)

•Assuming these optimistic growth figures, a typical household real income for the:

Bottom 10% is expected to drop by 15% by 2020.

Next 40-50% is expected to have a drop of 6% by 2020.

Next 30-40% expected to have an increase of 3% by 2020.

Top 10% is expected to have an increase of 14% by 2020.

Top 1% based on results of 2011/12 an increase of more than 200% by 2020.

The Spirit Level

• Linking the two together.

What Can Be Done?

• Perhaps a combination of the two approaches is most appropriate for UK.

• Smaller differences in pay before tax - e.g. Japan or New Hampshire – small government.

• Redistribution of monies through tax & benefits – e.g. Sweden or Vermont – big government.

• Despite how equality is achieved Sweden and Japan enjoy good health, lower rates of most social problems etc.

• Thus it is more important that societies become more equal than how they do it.

Taxes & Benefits

• Stop tax avoidance.

• End tax havens.

• Make taxation progressive again.

Income Differences Before Tax

• Increase company democracy - employee ownership etc.

• Promote more directors from within companies.

What Can Be Done?

What Can Be Done?

• Personal level• Living

• Working

• Money

• Macro level• Valuing and sharing work fairly

• Review tax systems –income/wealth/corporation/VAT/duty

• Reduce the wage gap

• Revert to “Universal” Social Services

What Can Be Done?

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