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Monthly News from the Equality Trust

The Equality Trust works to improve the quality of life in the UK by reducing income inequality.

 

 Because more equal societies work better for everyoneSep

september 2015

Dear ,

Please find the latest monthly round-up of research and news around pay, income and wealth inequality. This can also be found on our website here.

 

NEWS FROM THE EQUALITY TRUST

In anticipation of the new minimum wage on 1 October, the Mirror used our figures showing that it would take someone on the new £6.70 rate 390 years to earn what a FTSE 100 CEO gets in just one year.

Our letter calling on the Labour leadership candidates to commit to reducing UK inequality was published in the Times and, along with civil society groups, we were also a signatory to a letter in the Telegraph which warned that the Welfare Reform Bill will make poorest worse off.

Our Wealth Tracker, based on the Sunday Times Rich List, was referenced in a Guardian article about the role of inheritance tax in helping to create a fairer society.

We also blogged on:

And finally, we announced that we are looking for a Treasurer! If you want to get more involved in the campaign against inequality and the development of the Equality Trust, please see more information here.

 

PROGRESS AND DEVELOPMENTS

UK tax and benefit changes are worsening inequality, warned the IFS.

A new book from the IMF argued that well-designed fiscal policies can mitigate income inequality without hurting growth, and possibly increasing it.

The World Economic Forum said the gender pay gap and lack of access to education are driving UK inequality.

Michael Marmot warned that UK social inequality is costing 550 lives every day.

Life expectancy figures published in the Lancet showed that England's richest people live eight years longer than the poorest.

A paper by Professor Kate Pickett and Dr Laura Vanderbloemen showed how inequality damages education.

New US research suggested profit sharing can help both firms and workers.

 

LOW AND HIGH PAY

The High Pay Centre released its new essay collection on why pay ratios are so wide and how to make things better.

A PwC review showed that bonuses for FTSE 100 CEOs bear no relation to performance.

The TUC’s annual Pensions Watch found that FTSE 100 executives swapped their annual pension contribution for an average £152,000 cash payment.

A Resolution Foundation report forecasted a 0.6% increase in employers’ wage bills when the higher minimum wage comes into force next year.

Lidl announced it would become the first British supermarket to pay the real Living Wage, and Morrisons said its basic pay would rise above that.

 

LIVING COSTS                                                                            

HouseSimple calculated that hairdressers and florists will have to work for more than 150 years to put down a deposit for a house.

The Daily Mail reported that the government’s ‘Help to Buy’ scheme helps the rich, including couples earning over £100,000.

Despite the affordable home shortage, Shelter said ‘Right to Buy’ could see 113,000 council homes sold off.

The new 5p carrier bag fee will cost families £1.5bn over next 10 years, said the TaxPayers’ Alliance. It is also regressive.

 

POVERTY AND SOCIAL SECURITY

The IFS and Resolution Foundation separately calculated that the higher minimum wage will not make up for tax credit cuts, leaving people on low incomes worse off.

New research was published which explored why pupils from disadvantaged families are more often found in poorly performing schools.

Paul Johnson of the IFS explained why the UK spends more on housing benefit than police, roads and military equipment combined.

ONS analysis found that as level of household wealth decreases, sense of worth is lower and anxiety is higher.

 

We rely on donations to keep our campaign going. If you found this bulletin interesting and informative, please consider supporting our work by signing up as a regular supporter or by making a one off contribution. You can also support our work by forwarding this bulletin to people you know who might be interested in our work. Thank you!

 

 

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The Equality Trust
18 Victoria Park Square
London, E2-9PF
United Kingdom

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