A new study has found that the UK has one of the lowest levels of income equality in the world, with the median household earning just £12,700 a year.
The study also found that one in five households earn less than £25,000 a year and that the average household is also the least likely to be in employment.
The research by the Resolution Foundation and the Institute for Fiscal Studies (IFS) found that UK households are earning an average of £6,000 less a year than in the United States.
But while the average income of the average British household is still £11,000, the median income is £13,600, which is just under half the United Kingdom’s average.
The UK has the lowest level of income inequality in the developed world, according to the report, and the research also found the median wealth of UK households is £4,000 lower than in other countries, while the median home price is £3,200 less than in England.
However, the study found that while the UK’s economy is in the midst of a boom, a majority of British households still struggle to make ends meet.
More:The median income of households in the UK is £9,700 lower than that of households across the OECD.
And the average family’s income is still just £5,600 lower than the OECD average.
So, is this a trend that the country is going to take a long time to get over?
That is the conclusion of the report from the Resolution Institute and the IFS, which found that inequality is increasing in the country, but that the majority of households have still managed to stay in the top end of the income distribution.
Inequality in the last quarter of last year was higher than it had been in the preceding three quarters, and by the time the survey was conducted, inequality was higher still.
It’s a pattern that’s mirrored across Europe, where the average European household is earning an income of just over £20,000.
The IFS said the UK had one of its highest levels of inequality among OECD countries.
“Wealth inequality has reached a new record in the past five years, with a median household income of £12.6 million, and a median wealth gap of £4.3 million,” it said.
“The average household in the EU, at £14,700, is one of only two countries to have achieved a median net worth below £10 million in the recent past.”
This level of wealth inequality is also higher than the median net wealth of the OECD countries.
“So what can the UK do about it?
The Resolution Foundation said the government could make “great strides” to increase the income of middle class people, but said the next Labour government would need to “make it a bigger priority” to address the issue.
A recent YouGov poll found that 61 per cent of Britons would be more likely to vote Labour if it was the party of a strong middle class, compared to 40 per cent if it were the party representing the richest 1 per cent.”
In a country that has so much inequality, it’s not surprising that more middle class voters will vote Labour,” said Tim Gower, research director at the Resolution Trust.
Labour has been accused of trying to “play politics” with inequality in order to “punch up the rich” but Mr Gower said it was a “silly attempt” that would only increase the level of inequality in society.”
Labour’s strategy of pretending that the rich don’t care about the middle class is a dangerous idea, because the reality is that the poor are doing just as much as the rich, and are far less likely to have a roof over their heads, food on their table and a roof on their heads,” he said.
According to the Resolution Policy Centre, there are currently around 4.4 million people in the workless and under-employed in the whole of England.
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