UK Income basics

Question 0

By how much did annual average wages fall in the three years following the 2008 crash?

Answer 0

£1200.

Pensions and state benefits continued to be increased in line with inflation

Question 1

In 2013, the gap between the rich and the poor in the UK was at its narrowest for 25 years. True or false?

Answer 1

True, Measured by the Gini coefficient. Inequality tends to fall during the economic downturn is as benefits are increased in line with inflation while wages are hit by rising unemployment

Question 2

What are the ratios between the incomes of the richest fifth and the poorest fifth, before and after cash benefits such as state pensions and tax credits?

Answer 2

14 to 1 before government intervention. 6 to 1 afterwards.

Question 3

What proportions of their disposable income do the richest fifth and the poorest fifth pay in indirect taxes?

Answer 3

The richest fifth pay 14% of their disposable income in indirect taxes. The poorest fifth pay almost 30%.

Question 4

How much does the average household in the United Kingdom pay in tax each year? And what percentage of gross income does this represent?

Answer 4

£7400 or 20%

Question 5

What has happened to average disposable income of UK households since 1977?

Answer 5

They are 2.24 times higher in real terms (2.5 times higher for the richest fifth and 1.93 times higher for the poorest fifth)