Britain's inequality is getting worse due to inflation press...| MENAFN.COM

Friday, 27 January 2023 10:04 GMT

Britain's inequality is getting worse due to inflation pressure


(MENAFN) Based on the most recent data from the Office for National Statistics (ONS) Household Finances Survey, issued on Wednesday, Britain's poorest households are among the most affected by the cost-of-living problem as living standards struggle to keep up with inflation.

In the fiscal year that ended in March last year, the median disposable income for the poorest fifth of the population fell by 3.8 percent, and salaries as well as welfare payments also lagged behind the rate of inflation.

The figures show how the squeeze is widening the income gap between households with the highest and lowest incomes in the United Kingdom. It also demonstrates the difficulty in raising living standards since the country decided to leave the European Union in 2016, since salaries are being affected by Britain's weakening economy.

The typical household's disposable income decreased by 0.6 percent from the 2021 fiscal year, and more declines are anticipated given that inflation just reached four-decade highs. Inflation reached 7 percent by the conclusion of the time period covered by the ONS data.

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