Startling stats reveal that the gap between Britain’s richest and poorest has widened due to the freeze in income tax thresholds and the current cost of living crisis.
The wealthiest fifth of the country have boosted their household disposable income by more than £1000, according to the Office for National Statistics (ONS). They’ve also managed a 1.6 increase in pay, bringing the average salary in this bracket to £66,000 per annum.
The data shows how the cost of living crisis has disproportionately impacted the least well off in Britain, with the richest now more than £51,000 wealthier than the poorest.
A reduction in benefits in 2021 also hit poorer families hard.
“Wages and salaries increased by 3.2 per cent across all households, however, the poorest fifth of people saw a 7.5 per cent decrease, while the richest fifth saw a 7.8 per cent increase,” the ONS said.
During the pandemic, then chancellor Rishi Sunak added £20 to weekly benefit payments but by 2021 this was stopped.
A staggering rise in food and energy bills have also pushed the poorest to the brink.
“Richer households have far more ability to cut back on their spending as more of it goes on non-essentials, such as holidays and luxury items,” ONS added.