Income Inequality in the UK - Essay Example

The term refers to the difference between the population or persons in their wealth, income, or asset distribution. It is the inequality in the midst of individuals in society or countries (Champernowne and Cowell 1998, page 102-310). The inequality differs between economic structures, societies, the individuals’ capability to generate wealth, and the historical periods. A startling study on income inequality in Britain portrays the increasingly divided population in which 10% of its population is a hundred times richer as the 10% poorest in the society. A report in the anatomy of economic disparity in the UK scrutinizes the level of more inequality displayed for over thirty years. The paper may create an uncomfortable interpretation for the labor government though it signposts that a considerable obligation lies with the Tories who led the intense divisions in the 1980s and the early 1990s (Summit 2010, page 27-63).

                                 Causes of income inequality in the UK

Changes in the income distribution, where individual earnings change in time, thus affecting the high and the low-income earners in the UK (Incorporating one society 2012, page 12-32). Those in public sectors fail to experience wage increases thus largely affected by income distribution.

The difference in wealth, that is, people who own assets like rental houses earn extra income, those who inherited money may set up an industry with a likelihood of high incomes thus differing from the poor and those unable to generate capital for the creation of wealth.

Unemployment causes poverty in the UK as the benefits of unemployment are rather low. With the lack of a job, the income tends to lower, unlike those in employment.  The pensioners experience low incomes, especially those relying on the state pensions have an income below average wage (Summit 2010, page 27-63). Single mothers and those on a disability allowance rely on the state benefits and tend to have low incomes. Those working in public sectors have wages lower than the comparable jobs in the private sectors as the government relaxes in the salary increase.   

  Education is a key factor in income inequality. As the parents grow professionally, their children may tend to acquire better and more academic qualifications, unlike the uneducated parents who may disregard the importance of quality education for their children, thus leading to income disparity (Summit 2010, page 27-63).

Measures to improve the distribution of wealth in the UK

One of the measures includes government investment in the private sector. Investing more in the private sector, lead to the creation of employment. Thus, it reduces the chances of poverty in the country due to income distribution among most citizens.

The government should consider the increase of salaries to employees in the public sectors as they live below the average wage. As the employees in private sectors improve their standards and experience better working conditions due to the growth of the sector, those in public sectors are not familiar with such benefits.

There should be a difference in taxation where people pay tax according to wealth owned. The rich should experience high taxation where the poor pay fewer taxes to the government. The money spared from taxation can benefit the poor in a great way (Incorporating one society 2012, page 12-32).

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