Since 2010 the government has been keen to reduce inequality and to promote more work and better paid jobs for the unemployed and the lower paid. It has pursued a policy of taking more and more low earners out of income tax altogether. It has removed Stamp Duty for lower priced properties and cut the tax on anything under £1 million. It has provided savings schemes which offer incentive and top up to savers in modest financial circumstances. It has raised the Minimum Wage and provided pension saving plans for the lower paid.
The Equality Trust concludes that “Compared to other OECD countries the UK has a relatively equal distribution of wealth”. Whilst drawing attention to above average income inequality, the figures show that income inequality has fallen since 2010. The Gini coefficient of inequality has fallen from 36 to 34. The main purpose of the welfare reforms is to make working more worthwhile, and to help more people into employment. The economy has generated a large number of new jobs since 2010, and this has helped bring down unemployment and tackle inequality. Tax on the richest has risen.
Concentrating on educational reform is the best way of reducing inequality in the longer term. Freezing fuel duty has helped all those who need to travel to work by car, and all who need vehicles for their work.