According to a report out today from the Joseph Rowntree Foundation, the gap between the rich and the poor in the UK is as wide as it has ever been for the last 40 years.  In a damming indictment of UK society, it seems that while there are benefits coming through for the poorer of society, these are being dwarfed by the increasing wealth of the richer (heavily property based over the last couple of years).

While the above news in itself is disappointing to say the least, the fact that there are actually more poorer people, i.e. those living on less than the governments proposed minimum income, is an even more disturbing finding.  The report also highlighted a major change in the breakdown of social areas, with many of the richer moving out of the inner cities, into the suburbs, leaving the poorer to chase low value accommodation in run down inner city areas.

How has this happened?

It is common knowledge that in a rising economy it is the richer who benefit more as they are able to invest for the future.  The situation does change somewhat in recessionary times, when the richer may well be pulled back into line, with many over extending their investment portfolios.  However, it is the constant erosion of the benefit state which has perhaps hit the poorer harder than ever, the sub standard increases in the state pension, continuous means testing, the reduction of tax benefits for the poorer and the rising cost of living for all of us.

Will the situation level itself out?

Unfortunately it is the richer of society who hold most of the power when it comes to investment, when it comes to powerful positions of employment and very often the vote which the parties are fighting over at election time.  It will take a long term sustained effort by the authorities to rectify the situation, an effort which will be expensive and time consuming.  Whether they are up to the task remains to be seen.